Someone once said, “Loyalty is rare…If you find it, keep it.”. This is true in personal relationships as well as professional. As a small business you spend your days wearing many different kinds of hats. You greet your customers (often by name), manage inventory, schedule employees, process payroll, purchase advertising, manage marketing efforts that probably include an online presence and social media and offer stellar customer service. With all of those responsibilities it can be hard to capitalize on the opportunity to upsell your current customers and attract new customers. One of the solutions we offer small businesses is a Rewards Based Program that incorporates physical Punch Cards and Loyalty Cards as well as mobile versions thru our Kansas City-based product, iGiftback™.
The first way to increase Customer loyalty is to ASK FOR IT.
While this may sound too simple, it is a clear call to action that your customers understand. According to the Management Study Guide there are 5 types of customers: the Loyal, the Discount, the Impulsive, the Need Based and the Wandering.
By introducing all of your customers to your mobile Loyalty Card you have an opportunity to convert the remaining four types into more loyal customers and increase the frequency of your most loyal customers. With a rewards based program, you can reward these customers with mobile coupons, and rewards that are tied to qualifying purchases within your mobile Loyalty Card and Punch Card program. A recent study by a marketing professor at the University of Chicago Booth School of Business highlighted some interesting findings behind a reward system.
1. Customers accelerate their purchase frequency by 20% when they’re close to earning a reward.
2. Customers buy 20% more product in less time when motivated by a reward.
By investing in a mobile loyalty program you have already laid the foundation for increasing your sales with a customized platform that rewards your customer. The more you promote your loyalty program, the more results you will see in terms of frequency, increased sales and bottom line numbers.