Loyalty Programs and What They Can Do for Your Business

Some people believe that in retail, all you need to do is persuade people to buy your goods. However, this kind of attitude is not only simplistic, but also quite short sited. The key is not to persuade people to buy from you, but to buy from you over and over again. This is what is known as repeat business and it is the only way for your business to secure a steady source of income. The most reliable way of achieving this is probably through loyalty programs. With this in mind, here are a few things you should know about loyalty programs and what they can do for you.

Show Appreciation to Your Customers

Even though most people would claim money is the only metric they use when deciding on a purchase, this is not always true. Customer service, the way you address them while in store and the way you appreciate their loyalty are all important factors. If price was the only thing that determined the sales, there would be no SMBs in retail whatsoever. By starting a loyalty program, you show your clients that they are a part of one big happy family and no matter how skeptical some people may be towards this idea, this does result in better ROI.

Privileges for the Regulars

Sure, giving privileges to everyone might not be a smart financial move, but you could throw in at least some favors to your most loyal customers. This can mean discounts of different sort, participation in a giveaway, or just not having to pay for shipment or delivery. Removing purchase barriers and making these transactions easier, cleaner and more expedient can do wonders for your conversion rates. Just look at all the things Amazon managed to achieve with the launch of Amazon Prime.

Giving Them Reason to Come Back

If you decide to gift your clients with a coupon, points or even a visa gift card, you give them one more reason to return. Sure, somewhere else, they may be faced with a better offer, but not buying from you means that these great discounts will go to waste. Not many people are ready or willing to let that slide. In other words, even though you are giving a discount on your items and therefore earning less, you are investing in the future. Like with all of the investments, though, it might take a while until they start paying off.

Make Customer Network

Finally, we already talked about a phrase “one big happy family”. This doesn’t only refer to the relationship between you and your client, but also to the one amongst your customers. A perfect example of how this works in practice is Nike’s, Nike+ Run Club. What this sport’s equipment conglomerate did was make a global community of users. Furthermore, they connected them with renowned NRC coachers and, in this way, enhanced their running experience. One last thing, this trend allows independent users to make local clubs of their own, thus enhancing the immersion of the ordinary customer.

Conclusion:

Sometimes, it may seem to you that all of your hard work simply goes unnoticed. However, clients notice more than they let on. Being ready and willing to go that extra mile in order to keep your customers coming back is the key to success. However, willingness alone is seldom enough. One should also have a good knowledge of the business and the most reliable way of acquiring it is by emulating the industry giants.