Loyalty Rewards Programs
Although loyalty rewards programs don’t “give” things away for “free” per se, they are still very popular because people feel like they are getting something they didn’t necessarily have to “work” for.
You may be familiar, or maybe you are even a part of a loyalty program currently and you do not know it. They come with various names and various methods of implementing. But there is a common theme, if you will, in how they are referred to or labeled.
Customer loyalty programs, rewards programs, club card programs, customer rewards, etc. See how they all have a common similarity in titles?
These are all different forms of loyalty rewards programs and there are a variety of businesses which use them. From your local grocery where you shop every week to your airline of choice, many businesses have “club” rewards programs in place for their loyal customers.
How do these programs work? Why should you start a rewards program? What benefits do they bring your business?
All excellent questions we will tackle head on.
Loyalty rewards programs work in a few different ways.
Let’s paint a picture first: You are a small business owner, perhaps of a coffee shop, a sandwich shop, or even a local market.
Your business is very close to several very large residential areas with a lot of potential customers. You also have your major competitor a few blocks down the road. You know for a fact they don’t have a rewards program in place. Bingo!
You start a loyalty rewards program. Most are fairly easy to start and implement. You announce to your customers you are starting a rewards program and you would love if they would join! Naturally your customers want to save money on incentives, so many, if not all, will inevitably sign up.
They fill out a very simple form with their basic contact information and you issue them a card with a barcode on the back. You instruct them to scan it at the register every time they purchase anything in your store.
Once they have scanned their card, any of the items they have selected which have special loyalty rewards prices on them get automatically discounted to the special club pricing.
Cha-ching! Money right back in their pocket, and all they had to do was fill in a few lines on a form.
It’s even easier than that nowadays, though. Rewards programs are evolving. Now customers can sign up with their phone, through Facebook, for instance, in the click of a button. No need to fill out any forms.
To make it even better, they don’t need to carry around a card, either. They just scan the store’s QR code with their phone right there at the checkout and receive a “punch” on their digital rewards card (stored in their phone’s app).
And to top it off, now you as the business owner / merchant, can communicate directly with your customers through this app on their phones. You can send VIP deals which only loyal customers get with a countdown until the deal expires. Or you can send them a text message offering a discount.
Couldn’t do this with the traditional physical card, could you! This new mechanism of remotely contacting your customers on their phones to tell them about deals has proven to explode sales in businesses who use it properly and consistently.
So it is up to you to determine what items are included and what the discounts are, but the more attractive the perks for joining the loyalty rewards program, the more apt your customers will be to join.
What does this mean for you other than you’re now giving your goods away cheaper than before and losing money?
Now wait, hold on. We haven’t come full circle quite yet!
The benefits to your business are endless! (Who doesn’t like the sound of endless money!?)
Here’s a few ways you will begin to notice an immediate difference:
- When people are saving money, they tend to buy more.
- When people buy more, your business makes more.
- When people know they save money by shopping at a particular place, they most often will go to a place of business for their needs over your competitor down the block.
- When people like the program and the perks they receive (which, we have faith, they absolutely will) they will begin to spread the word to their friends and family.
- Word of mouth is one of the most powerful ways to gain new business. When the customer feels taken care of, they share their experience, especially when they are simultaneously saving money!
- Your loyalty rewards program will enable you to track buying trends and be more efficient with your ordering.
- You can design specific sales or promotions based on what you see is trending with your customers.
Are you beginning to see the picture we are painting?
The increase you’ll see to your bottom dollar and increase in foot traffic to your business are invaluable. Loyal customers are customers for life!
This means a steady, constant flow of loyalty rewards members into your place of business for the foreseeable future! As long as you provide provocative, enticing deals, they will continue to come back for more and more.
Implemented well and with the right help, you will start to notice a very significant upswing in the regularity of your loyal customers, which will, in turn, directly impact your revenue.
For any questions about how to implement these successfully or which program is best suited for your business, give us a call here at RedFynn.
We do this. It’s our job to help. We’d love to help you! (888) 510-9871