We’ve written at length about customer retention and the important role it plays in the long-term success of your business. For this article, let’s drill down on one of the easiest steps you can take to keep your shoppers engaged: loyalty programs.
Loyalty programs will keep your customers coming back for more, and more! In fact, 57% of brands report that they will increase loyalty program budgets in 2017. Time to ramp up your efforts as well!
Without further ado, here are 5 customer loyalty program ideas for your small business.
1. Points Programs
Think credit cards, but for shopping purchases occurring on your site. Obviously one of the main attracting factors for consumer credit cards is the ability to get money back for the dollars you spend. By implementing the same value proposition, without the commitment of a credit card, you can entice browsers to purchase and keep on purchasing. Fun fact: roughly one third of customers report that they prefer their “thank you’s” in the form of points rewards.
2. Partner with another Company
Cross promotion is a no-brainer for businesses starting out, and also for businesses that are established. It works at every scale. In offering free or discounted products to another site in a similar vertical or popular within the same demographic, you can leverage other brand’s products to increase traffic to your own site and get shoppers excited about purchasing. Who doesn’t love a great partnership?
3. Spending Tiers
Incentives, incentives, incentives! Entice your customer base by offering free products, free shipping, or discounts after they’ve hit a predetermined spending threshold.
4. Amazon Them!
Think about Amazon Prime and its huge success. By charging a fee up-front Amazon is able to capitalize on increased transactions on their site from those same loyalty members. Prime members end up spending about $1,000 more per year than non-prime members as they are incentivized to shop on the marketplace more often by the rewards program they have already bought into.
5. Create a seamless customer experience
Although this isn’t a traditional “loyalty program” customer experience is arguably the most important promotion you can offer. To this point, 86% of consumers say loyalty is primarily driven by likeability and 83% of consumers say trust. Provide your customers with a seamless experience and watch your brand loyalty grow.
These 5 customer loyalty program ideas for your small business will help in gaining customer traction. Any other tips? Feel free to comment below.