Why Should I Have A Loyalty Program?
Loyalty programs and reward cards have been developed by companies to retain their most valuable asset; their satisfied customer. These programs continue to draw in consumers to make return visits to their businesses and increase traffic to their storefronts.
Why Should I Have a Loyalty Program?
With the onset of group deals and daily deal companies, businesses have had a spike of success but buyers associated with the ‘quick sale’ mindset often fail to return for further visits. The key is not just to offer a deep discounted deal but to offer customers continued quality service and back it up with a loyalty program.
Loyalty Programs Help Keep Existing Customers
Loyalty programs take the form from simple punch cards offering free sandwiches after 10 purchases, to POS customer data analysis. Trouble-free punch cards, are the simplest form of loyalty program as it offers a tangible benefit to the consumer. The freebie after so many visits is a welcome benefit to consumers, but loyalty programs should be much more than that.
Data from loyalty program members can offer an inventory of customer product use and frequency of purchase. Merchants can use information from their POS services software to develop a detailed inventory of their customers. This can include:
- Frequency of visits
- Dollar amount of purchases
- What was purchased
Armed with data from the POS, retailers and business owners can identify customers and their specific needs and how to develop a program that would benefit their best customer. Your loyalty program should offer discounts for members, premium services for loyal and repeat users/customers and rewards that have a tangible value, but not at the expense of the retailer.
Loyalty Programs Bring in New Customers
Profitable businesses are continually finding ways to bring in new customers. By understanding the parameters of the satisfied existing customer, retailers and business owners can recognize the qualities of a potential new customer and implement successful strategies to make them a satisfied and loyal returning customer.
Loyalty Programs Increase Sales
Consumers have infinite choices, are well informed and are looking for the best value for their dollar. Retailers have risen to the challenge and become noticed from their competitors by offering strategic loyalty programs. Points, discounts and free are often the hooks used to bring in and keep customers coming back.
The reward for purchase is often the deciding influence on where the consumer will purchase a product. If store ‘A’ has no reward or loyalty program but store ‘B’ offers a simple add on, discount or freebie, consumers will flock to store ‘B’ because of the reward.
Simple programs that offer a connection to your valued customers are the best way to get customers and maintain your customer base. As the famous saying goes, “Nobody cares how much you know, until they know how much you care” is true for developing your loyalty program as it is in politics and everyday life. It is important that you care about your customers and develop a relationship with them.