5 Reasons Why Small Businesses Need a Loyalty Rewards Programme

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, they can now easily create and deploy customer rewards programs for small business that are effective, affordable, and easy to manage. Beyond just discounts, these programmes offer powerful rewards program benefits like increased engagement, repeat purchases, and insight into what your customers truly value.

If you're still undecided whether a customer loyalty rewards programme 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)

Implementing a loyalty rewards program for small business ensures your brand stays top of mind and gives customers reasons to return. Offering meaningful rewards helps build small business customer loyalty over time.

Boost Revenue

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 rewards programme benefits such as exclusive discounts and personalised perks, etc can encourage consumers to spend more. Leveraging these benefits is key to growing a customer loyalty that drives consistent revenue.

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 programme 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 rewards programme 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.

Want to make loyalty part of your business strategy? Visit our Loyalty Programme page to see how One Way Loyalty can help you launch a powerful customer rewards program for small business and check out our loyalty system features. You can also find out more about why small businesses need a loyalty rewards programme here.

Back to Blog