In the retail business, where customers are overwhelmed by choices— where, how and which brands to shop, an effective solution to retain customers is more important now than ever. Almost everyone is offering discounts or doing a promotional sale. The ease of shopping online also puts additional pressure on offline retail stores to provide a unique experience for their customers, and offer rewards that will encourage shoppers to stick around.
Customer loyalty programs are very essential for retail businesses. It’s a no brainer that a loyal customer buys and spends more than casual shoppers who just pop in once in a while. Therefore, having a customer loyalty program could help you increase the loyalty of your existing customers (while they get rewarded for it) and also boost the loyalty of those targeted casual shoppers, thus giving them a reason to stick with your brand more. Facts also show that loyal customers spend 67 percent more, than a new customer does.
The main strain with retail businesses (and even all businesses) is that there is a limited number of customers available. Definitely, everyone can’t buy from your store alone. You have to share this finite number of customers with a whole lot of other stores who may even be offering better deals or products than you. So how do you get ahead? It’s easier to just stick with the number of customers that are already frequenting your store and keep them loyal and happy. If customers keep coming back, sales will continually increase or at the very least, be consistent and stable.
Also, by giving out rewards to your loyal customers, retail business owners are not only showing appreciation for their customers’ loyalty, but also encouraging them to be brand ambassadors and marketers. This can save you a huge deal on marketing strategies and advertisement. Customers who are rewarded are more likely to spread the word about your business to their network of friends, business colleagues and family, thus helping you to increase your customer base. Instead of focusing all your energy on attracting new customers, who are far less likely to become repeat customers, make your already existing customers more loyal, and watch how they start referring your store.
A good and effective loyalty program helps you rise above your competition. Customer retention can provide lots of benefits for your retail business. These include increasing sales, giving you a competitive advantage and developing a stronger relationship with your customers.
Customer loyalty programs have been proven to boost growth. After implementing your loyalty program, you can be rest assured that growth will be positively affected. The logic is simple. People find the attainment of any type of goal or task extremely satisfying. This feeling of satisfaction pushes people to keep on attaining other goals. When your customer knows she’s just two purchases away from a free gift, it’s only natural that she will want to make those two purchases more sooner, so she can carry on with other rewards-driven tasks. In the long run, your sales continuously increase.
Apart from helping your business become more profitable, loyalty programs also let you cut costs on the associated expense of acquiring new customers and other strategies targeted at enticing new customers. This makes loyalty programs very financially savvy.
Technology is making it easier and cheaper than ever before for your business to launch a customer loyalty program. Say goodbye to traditional loyalty programs which involves the usage of paper and plastic cards, and embrace the new wave of innovative and cost effective ideas.
StampnGo offers you an app-based rewards system. We’re eliminating the reluctance of most customers to sign up for a loyalty program, such as the clutter caused by plastic and paper stamps, the difficulty in tracking their points or the inconvenience that may be associated with claiming their rewards. By having their digital stamps on their phones, customers can now relate with your brand better, see available offers and track their progress.
As a business owner, you also get to benefit, by having access to relevant information of your customers, such as their email address, who they are, and what they love buying. By implementing our loyalty program, you also appeal to a larger audience of customers who love to have everything done on their mobile devices. With the current trend of everything being digital, customer loyalty programs that are not app-based, are less likely to be successful.
Loyalty programs are an effective tool in increasing customer retention and expanding client base. You can rise above your competition by implementing a customer loyalty program that appeals to millennials and watch how the game changes in your business.