Does Your Business Need a Loyalty Program?

loyalty programLoyalty programs can serve multiple purposes for your business and customers. You can draw in new customers with special deals on your product or service. You can glean contact information to grow your marketing list. It is also a great way to thank and reward your most loyal customers and keep them coming back.

So how do you start a loyalty program for your own business? Here are a few tips to make your loyalty program rewarding for you and your customers.

Offer an Immediate Incentive

In order to draw in people to the program, offer something right off the bat. A discount on their purchase or a free gift encourages customers to sign up and not have to wait to reap benefits. People respond well to instant gratification. Be sure to tell new sign-ups you won’t share their contact info with anyone else; giving away personal details is one of the biggest hang-ups people have in deciding to join.

Pace Your Rewards Wisely

A loyalty program can base rewards on dollar amounts, items purchased, or number of visits. But no matter how you structure your program, make sure you are being fair to both your customers and yourself. Find a balance between making rewards practically attainable and not giving too much away. Test out what will keep your customers coming back to make it worth it for your business.

Be Exclusive

People love being part of an exclusive group. Offer discounts and promotions that your loyalty customers and only those customers can get. Get creative and fun with new offers that keep your VIPs interested. Customers should be able to keep building up credit or points or rewards to keep them excited about their VIP status.

Broadcast It

Even if you want it to feel exclusive, your loyalty program should not be kept secret. Make sure you promote the program and all its benefits on your website, social media, and other marketing. After people sign up, remind them of their VIP status with emails that offer new discounts or promotions on a regular basis. Email campaigns for loyalty programs are shown to be much more effective than ones to your whole list.

Pick a Good Solution

Your loyalty program can be:

  • Basic, such as a punch card
  • Easy, like a loyalty card that can be scanned or swiped
  • High-tech, like a smartphone app

Your younger customers in particular will expect a modern, convenient electronic tracking system. Loyalty cards are a great middle-of-the-road solution. Look into your options and pick a tracking solution that is quick for the customer, and easy for your employees to handle. Remember that getting your customer’s contact info gives you extra leverage in your future marketing.

With a little work on your part, you can gain loyal customers and show your VIPs that they matter to your business. A loyalty campaign can be the gift that keeps on giving–for your customers and you.


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About Lee

Lee is a computer expert and writer with a background in technical writing, Internet marketing, blogging and website design.