5 Reasons Why Small Businesses Need a Loyalty Rewards Program
Customer loyalty programs are nothing new. Big brands have implemented successful customer reward systems.
However, many small and medium enterprise (SMEs) are not even considering using loyalty reward programs in their marketing mix.
Why is that so?
A possible explanation for this apathy is that most SMEs are often trying to avoid the hassles that accompany setting up and managing a reward system.
Thankfully, with innovation and a bit of out-box-thinking, these small businesses can now easily create and deploy loyalty programs.
If you're still undecided whether a customer loyalty program is right for your business, here are five reasons that will help you make up your mind.
It's Easier to Retain Existing Customers Than It is to Find New Ones
It cost way less for a business to get their customers to buy from them after the first purchase, than it is to get new prospects, who haven't done business with them in the past, to convert. (Source)
Here's where creating a reward program that is both useful and offers experiential value to customers come in to ensure they remain with your brand.
Data showed that when a business focuses on increasing customer retention by 5%, they see an increase in profits by up to 25 to 95%. (Source)
That's not surprising considering that loyalty programs when done right can encourage consumers to spend more.
Connect With Customers
As a small business, you want to turn your customers into brand advocates - not only are they loyal, repeat buyers, but have become active promoters of your business.
While providing exceptional service experience can go a long way, implementing a timely reward program can encourage even the most reluctant customer into becoming a passionate advocate for your business.
Gather essential customer data
Understanding customers - their aspirations, pain points, behaviours, how they shop and where they shop are crucial for survival for businesses in an increasingly competitive marketplace.
Implementing a loyalty program can allow you to gather valuable consumer data quickly and gain deeper insights into your customers.
Reward Your Customers
Loyalty programs can serve as a statement of purpose - that you value your customers and ready to reward them for their loyalty.
Including reward systems as part of your customer retention strategy allows you to tap into one of human's most potent psyches - love for gifts.
When you offer customers discounts, unique gifts, and go out of your way to reward them for a purchase, they will feel special and are likely to come back again.Back to Blog