The point of customer loyalty programs is extremely simple: repeat customers are rewarded for their return, which will make your business sales increase. While it’s simple, it’s an extremely effective and powerful marketing tool.
There are many big businesses that utilize reward programs. Companies such as Starbucks and AMC see their customer retention rise in part because of their loyalty programs. Starbucks, for instance, has claimed that their program has played a significant role in raising its profit 26% in 2013 which resulted in an 11% jump in their total revenue. Other companies such as Best Buy have also begun to utilize loyalty program after experiencing stagnant results in their revenue in their brick-and-mortar stores.
Online retailers are also cashing in on the benefits of loyalty programs. Retailers such as eBay and Amazon.com have seen their percentage of customer retention increase a little bit with the help of reward points.
Loyalty programs aren’t just effective with big businesses. They can also help local businesses increase their customer retention. More and more local businesses are turning to loyalty programs to increase their profit, but they tend to make the mistake of creating their own loyalty cards without any professional help. Here’s what a good customer loyalty program and a professionally designed loyalty card can do for your local business:
- A repeat customer will always give. The biggest advantage of a Customer Loyalty program is that you are guaranteed to have customers that will return. This alone increases your business revenue more than you can do without one. Studies have shown that a repeat customer is likely to spend 67% more on their purchase at your establishment than a new customer will. This means that loyalty programs are more cost-effective than marketing strategies that are intended to solely attract new customers, and a loyalty program will entice new customers.
Programs are a way of saying thank you for your business, and they also serve as motivation for that customer to continue being your company’s brand ambassador. An attractively made loyalty card will assist in the ease of spreading the word about your business; people will see your customer’s loyalty card and ask them about your business. Thus, your business’s customer base will increase even more.
- Allows local businesses to rise above their competition. Being a small business can be extremely difficult, especially when you are competing with larger companies that simply have more resources, locations, marketing money, and the ability to price their product more affordably. A customer loyalty program can be that step that puts you above your competition by showing your personal side while remaining competitive with those big businesses. A well-done loyalty program card will also show potential customers that you can produce a high-quality product.
An example of people choosing your business over bigger businesses thanks to your loyalty program would be offering the same product as a big corporation, let’s say coffee, to your customers. The big company may not have the best coffee, but they have loyalty cards that allow their customers to collect points. If your small business does the same, you’ll see an increase in new customer because not only are they getting better coffee, they are also getting rewarded for it.
- Starting a customer loyalty program doesn’t have to cost you a fortune. You really don’t have to drain your business’s budget investing in a customer loyalty program. There are big businesses that pour millions of dollars into their loyalty programs, but that’s not something small businesses have to worry about. You’re working on a smaller scale and can utilize many strategies to create a successful program. There are applications for mobile phones that allow small companies to set up rewards for their customers, but a physical reward card isn’t going to break the bank either. Apps can be great, but you won’t have control of the glitching that comes with technology that isn’t yours. A professionally designed loyalty card for your business is the simplest way to go. You won’t have any glitches. An appealing logo or design can be placed on them. Plus, they can be made affordably.
Should Your Small Business Get a Pro-Designed Loyalty Card?
Strategies to increase customer retention aren’t just made for the big companies. Loyalty programs are useful tools that can benefit small business owners greatly. They help local businesses stand out from their competition, develop a strong relationship with clients, and increase sales. Those looking for somewhere to get loyalty cards, look no further. Our team at Greenlea Print can assist you with printing high-quality loyalty cards that are sure to be effective in your program. Let Greenlea Print help you by using our 30 years of experience in print and design to create something both you and your customers will benefit from.