A customer loyalty program is one of the most important features your business should have. Not only are they cost effective and incredibly easy to implement, but you should start seeing returns almost immediately. In today's society, businesses that do not have a customer loyalty program are at a huge disadvantage when competing against those who do.
Why do you need one for your business?
- Businesses with a loyalty/rewards program on average have a 27% higher customer return rate
- Customers tend to spend more when being rewarded
- Analytics and Information are crucial in today's economy
Simply put- You Need a Loyalty/Rewards Program for Your Business
But why?
Great question!
We live in a consumer driven, "What's in it for me?" society. Millenials in particular, are more aware of, and usually make decisions on their purchases with a reward in mind. This mentality applies to virtually every sector of the economy from restaurants and retail establishments, to service industries, even banks and credit institutions. Our business here at Capital Bankcard South is even influenced by consumer demand.
Here are just a few reasons why you need this for your business:
1. Businesses with a Loyalty/Rewards program on average have a 27% higher return rate
I always use the "Where are we going for lunch today?" example when illustrating this point.
In almost every major city there are literally hundreds of restaurants competing for your lunch business every day. In most cases, people will choose the restaurant (as long as the food is good) that offers the best reward/incentive for their go-to establishment of choice. Have you ever wondered why some places are much businer than others when their food is marginal? There's your answer.
Customers will come back over and over when you sweeten the deal.
2. Customers tend to spend more when being rewarded
This one we are all influenced by, myself included. Some nights, my wife will ask me to pick up a bottle of wine on the way home. One wine store that is on the way to my house has a promotion where if you buy 2 bottles, you get 1/2 off of a 3rd. Guess who almost always ends up with 3 bottles of wine? They don't even have the best prices, but its a deal, and I buy in every single time.
Give them a reason to spend more and they will!
3. Analytics and Information are crucial in today's economy
Do you have a newsletter, or a way of communicating regularly with your customers? If your answer is no, why not? Cultivating a customer list is one of the easiest things you can do to keep your customers informed. An e-mail newsletter takes less than an hour of your time per month, and can be the catalyst that turns a one-time customer into a customer for life. If you don't have the time, or you don't like to write, we love working with Social Ape. Tell them we sent you for a special offer!
Customer engagement is how you let your customers whats going on in your business, and most importantly why they should come back.
To wrap this all up, a Loyalty/Rewards program is one of the easiest and most cost effective ways to grow your business. You like your customers and they like you. There is nothing wrong with giving someone a reason to come back and spend their hard earned money in your business. Programs like these have been around for years. They are not a trend, and won't be going away anytime soon. Embrace the consumer culture, and in turn, they will reward you with loyalty.
For more information, or to set up a loyalty program for your business, visit our website for more information.
