The Importance of Having a SKU (Product) Based Loyalty Program
SKU, or stock-keeping unit, is a number or code that’s used to identify each unique product that a store or business has for sale. SKU systems make it easier for companies to track their inventory and product availability. An SKU isn’t always associated with a physical item – it can be associated with any billable entry, including delivery fees, installation fees, extended warranties, attachments, bundles, product lines, and services.
SKU loyalty programs utilize SKU technology in order to capture useful customer data with each transaction and track purchases using comprehensive reporting tools. SKU loyalty programs reward customers for purchasing specific products and services. They’re extremely valuable because they allow you to influence your customers’ buying behavior, target your marketing efforts, and fine-tune your marketing campaigns.
Gain a More Accurate Understanding of Your Customers
An SKU loyalty program provides you with detailed consumer receipts, enabling you to gain a more accurate understanding of your customers and strengthen your relationships with them. You’ll obtain a significant amount of data about each customer involved in your loyalty program, which will allow you to build a comprehensive customer database and send each customer targeted marketing messages.
Identify and Reward Your Most Profitable Customers
Want to attract and retain loyal, profitable customers? An SKU loyalty program enables you to determine who your most profitable customers are and reward them for desired behavior. When you track purchases at the SKU level, you can provide your best customers with added value in response to specific purchases. This builds even greater loyalty and boosts customer retention. Understanding what your most profitable customers purchase and why is essential to deepening your relationships with them.
Encourage Customers to Purchase Specific Products/Services
By tying rewards or discounts to specific SKUs, you can reward your customers for purchasing specific products and services. Therefore, SKU loyalty programs allow you to drive the sales of specific SKUs.
Run a Variety of Promotions
SKU loyalty programs allow you to run a variety of promotions to keep your customers engaged. Examples of innovative promotions you can run include buy-one-get-one-free, bonus points for featured rewards, rewards at random, and double/triple point promotions on a specific day or at a specific time. SKU loyalty programs also give your company a competitive advantage because they allow you to create unique promotions that help you stand out from your competitors, and they give your customers incentives to continue doing business with you.
Combine Your SKU Loyalty Program with Other Marketing Tools
Thanks to today’s technology, you can combine your SKU loyalty program with other marketing tools, such as email marketing campaigns and coupons. SKU loyalty programs also enable you to improve your communication with customers and build mutually beneficial relationships.
Reduce the Cost of Marketing
SKU loyalty programs help you cut marketing costs because they collect a wealth of data about your customers using a variety of monitoring and reporting tools. With the help of data provided by your SKU loyalty program software, you can target your marketing efforts based on probable response.