Customers: the key ingredient to make sales and keep the business afloat. But how do you attract customers and retain them? The solution is simple: a loyalty program.
A loyalty program can help a business:
- Attract customers
- Retain customers
- Increase dollars spent in your business
- Gain valuable insight into your customers’ behaviors
According to statistics, 83% of customers say loyalty programs can influence them when making a decision on a purchase, whether they are a current customer or visiting your store for the first time.
The key to keep them coming back is bundling discount and loyalty. If you give a discount, money walks out the door. But if you give loyalty dollars, it keeps the customer happy and it keeps the money in your business.
As well, increased loyalty = increased customer visits = more spending each visit.
And before you worry about the cost of a loyalty program, we’re here to tell you that they’re not as expensive as one may think!
In a 2013 Forbes article, it was stated that keeping an existing customer is 7 times less expensive than acquiring a new one. Loyalty programs can also help reduce promotional and advertising costs which means they are great for any sized business.
Loyalty programs are great ways to provide you with vital data on your customers and sales, boost your reputation and rise above the competition, and keeps your customers happy.
So how do you create a loyalty program that will drive your business?
1. Target Specific Times
If you notice a lull in business during specific times of the day, week, or even year, double rewards earnings during that time as a sweet incentive. Timed initiatives allow you to target otherwise slow periods and flip them in your favour.
2. Target Specific Customers
In a time where the market is more competitive than ever, it’s important to launch a program that stands out from the rest and engages your customers. It is also important to make each of your customers feel important.
Turn Carol’s 1-2 annual visits into 3-4 or more visits by reaching out directly with customized promotions.
Haven’t seen Carol in a while? Load up her loyalty card and send her an e-mail to let her know she has additional rewards earnings she can spend at your location.
3. Target Specific Items
A great way to drive sales is to tie products and promotions together and offer rewards when specific items are purchased. Want to move your inventory even quicker? Why not offer extra rewards with the purchase of a specific product. It’s a win-win for the customer and for you.
4. Contests and Giveaways
Everyone loves a good contest and no one can pass up the chance of winning. With the power of social media, your possibilities are endless when it comes to creative ways to engage your customers.
There are different initiatives you can launch: the first person to name your new seasonal latte, or the first person to take a photo at one of your locations, or create incentives for them to bring a friend.
Customers or prospective customers are engaged on a personal level and can be rewarded with your brand’s loyalty currency.
So what are you waiting for? It’s time for you to boost business and boost your customer retention. Speak with Ackrootoday about launching your loyalty program!