Loyalty Rewards Program Benefits
Recently, I read a good article about loyalty rewards programs from the SpotOn Blog by Sarah Greesonbach. SpotOn has quickly become one of our primary partners for Restaurant POS. The following are the key points I wanted to share with everyone:
Repeat business is critical to the success of a small company, so how do you keep customers coming back? Loyalty rewards programs encourage customers to keep doing business with your company by giving special offers or freebies.
SpotOn Restaurant POS
Common Types of Loyalty Rewards Programs
The three most common types of loyalty rewards programs:
- Points for purchase: Customers earn a certain amount of points for every dollar spent. They can redeem the points for free gifts or special promotions.
- Tiered programs: Customers are incentivized to move up levels of commitment or activity in order to receive more valuable rewards. For example, make ten purchases and get the eleventh free.
- VIP programs: These are members-only perks or services given once a customer reaches a certain frequency of visits, or opts into a paid membership.
Building Customer Relationships
Loyalty rewards programs are popular because they provide mutual benefits to the business and the customer. Providing existing customers with special promotions, or even a thank you gift without making a purchase, makes them feel valued and appreciated. It also increases the likelihood of them giving you additional business.
When a small business establishes a loyalty rewards program, it increases retention and revenue by taking the long-term view of its relationship with customers. You could use captured data to acknowledge customers with a reward on special occasions, or provide customers with helpful reminders of recurring events. This type of outreach shows customers you care and inspires them to return the investment with their loyalty.
Loyalty rewards programs help to attract new customers because many people simply love special offers, freebies, and the sense that they’re building a relationship with a business.
Getting Started
To get started with a loyalty rewards program, the first step is to figure out the types of rewards that will resonate most with your customers and build a program reflecting their needs. Think about purchase frequency, special offers, or discounts, depending on the amount of money the customer spends with your business.
Next, make sure you have the best possible loyalty rewards program technology that is simple for your customers to use and easy for you to manage. Three important features to look for:
- Fast enrollment: Get a platform that allows customers to sign up with a single data point, such as a phone number or email. This ensures the highest enrollment rate.
- Mobile friendly: Most customers prefer using mobile apps to access loyalty rewards program information. The more accessible your program is, the more successful it will be.
- Easy Reports: Look for a tool that provides easy to read reports, so you don’t have to do complex calculations just to figure out what’s working.
Do you have a plan for how to build your relationship with current and prospective customers? If you’d like to read the full article, find it at the SpotOn Blog. To learn more about how a loyalty rewards program would work for your business, Robin Hood Business Services will gladly answer any questions you may have. Give us a call for your free consultation today!
