Programs that used to be reserved only for big corporate entities are now available for your business. Not a new concept, loyalty programs have evolved over the years to become an important tool for businesses to retain customers. They are run by just about every big name retailer, but you don’t have to be a national chain to benefit from customer rewards programs for small businesses.
At Adept Payments, we will provide you with a personalized, branded gift & loyalty program, which will help you build your brand and encourage return visits. Please contact us for full details.
Why Do Loyalty Programs Matter?
Repeat business drives higher profits. A loyalty program helps turn a one-time shopper into a regular customer. It can include various types of rewards to encourage shoppers to return. Every rewards program is unique (and can be tailored to your brand) but built on the same principle—the more times a customer buys something at your store, the more rewards they get. That’s a pretty good incentive for getting them to return.
No business can exist without its customers and the support they provide to your business. In addition to customer retention, customer loyalty matters because it:
- Drives Profits: According to Forbes, retaining an old customer costs a business one-fifth of attracting a new customer. Studies have also found that by increasing customer retention just 5%, profits can increase anywhere from 25% to 95%.1
- Provides Data: More data helps you make important business decisions, such as how to run an email marketing Data also helps track sales, churn rates, and overall retention. Many point of sale systems integrate with loyalty programs, to streamline loyalty card processing and collect customer data more easily.
- Helps Target Offers: As a small business owner, you can segment your customers and deliver specific offers to certain groups using the information gathered from their shopping habits. You can target high spenders, specific preferences, and other personalized metrics to better catch customers’ attention.
Types of Loyalty Programs
The most common structures for customer loyalty programs include:
- Discount Programs: Simply take a percentage off the original price of an item. It’s easy enough to offer customers lower prices, but try not to make your regular prices seem higher than they should be.
- Cash Back/Rebate Programs: A rewards program in which customers earn money back from each purchase. Rewards can be redeemed for cash once a certain amount is spent. Rebates are typically a percentage of a customer’s total purchases over a certain time.
- Frequency Programs: Use paper punch cards to track visits and give customers a discount or freebie after a certain number of purchases. These are inexpensive to produce but can be manipulated, since customer information isn’t tracked.
- Points Programs: Points equivalent to the amount a customer spends are assigned. Once a customer knows how to track their status, there’s no need to discount your products or services.
- Tiered Rewards: A tiered system can keep people engaged. For example, they can level up by making purchases more frequently or buying higher cost items. This works well if your business sells expensive items.
- Gift Cards: Rewards systems can use email or text opt-in formats, mobile apps, and scannable cards for use with your POS. But gift cards remain a popular way to reinforce brand loyalty. A gift card system for small business is a versatile customer loyalty option. It can be managed digitally or via physical cards with barcodes or magnetic strips to track customers and card use.
Why Do Small Businesses Choose Adept Payments?
We help support small businesses with the latest gift and loyalty card options to support your merchant incentive programs. In addition, our merchant service professionals can help choose the best loyalty solution for your business and integrate it with your POS. Personalized customer support is available whenever you need it, from setup to receiving advice on boosting gift card sales. Contact us today to get started.