According to Forbes, it can cost a business five to seven times more to acquire a new customer than to retain an existing customer. With your company’s hard-earned revenue on the line, it makes sense to invest time and resources to keep the customers you already have. Building a customer loyalty program is one of the most effective marketing strategies to keep your customers engaged and coming back.
A loyalty program that offers real value and is easy to understand can help you grow your customer relationships and drive repeat sales. In many cases you can even automate your customer loyalty program by using a POS system that has one built in. Lots of POS systems can handle things like cash back offers, coupons, and reward points.
Here are some ideas to help get you started building a customer loyalty program:
1. Offer a Free or Discounted Product or Service. People love a deal, especially one that does not require them to spend any additional money. Many consumers are willing to earn discounts or perks by meeting the conditions of a loyalty program. For example, you could offer your customers a discount off a future purchase, or you could give them a small free item if they spend a certain amount of money.
2. Reward Customers for Referrals. A customer who loves your business so much that they tell their friends and family about it has done you a great service. Reward your customers for every referral they make, and you will likely see an uptick in new business. Consider offering your customers a discount or a free product if they refer a new customer who makes a qualifying purchase.
3. Create a Tiered Loyalty Program. Shoppers increasingly feel attracted to brands that make them feel special. You can take advantage of this trend by creating a customer loyalty program that offers exclusive rewards to the people who spend the most at your business. This type of loyalty program can incentive consumers to spend more to reach that top tier. Offering early shopping hours or exclusive events, a steep discount, or early access to new merchandise are all examples of elite benefits that you could offer your top-tier customers.
4. Hold Regular Contests. Winning a prize can make people feel special and more excited about your business. Consider offering your customers raffle tickets for purchases made during the contest period. The more they spend, the more entries they receive. Social media contests are also growing in popularity with small businesses. For example, you could ask your social media followers to post a photo of their purchase and tag your page in order to be entered into a contest drawing. These types of contests can drum up excitement and awareness of your brand while keeping your existing customers engaged.
5. Provide an Incentive to Sign Up for Your Email List. People can be wary about giving out their email address without having a good reason to do so, especially with the volume of emails that businesses send today. Make it worth their while by offering a discount when they sign up you’re your email list. Once you have their contact information you can send regular updates to keep them engaged, such as advance notice of upcoming sales or store events.
Building a repeat customer base takes time and effort, and a loyalty program can help. Finding little ways to engage your customers and show appreciation for them can help keep them satisfied and in your corner.
If you’re a business owner in Massachusetts or Rhode Island who would like to learn more about POS systems with built-in loyalty programs, visit our Merchant Services page or contact us today.