Blogs published on 27-08-2019

Loyalty programs

POS SOFTWARE

The overwhelming majority of our clients would have some point of sale loyalty program in place in their shops. 

As a rule loyalty scheme, to do it properly should cost about 1% of sales. So if your shop is doing $500,000 a year, your budget for a loyalty program is about $5,000.

Years ago Garth Brennan from our company wrote an article here about it, that was published by National Newsagency magazine.

What I found surprising reading this article is how relevant it still is 15 years later.

Discount Vouchers is the most straightforward system to implement. You can set it up in moments with our system. If you want to test it out, I would suggest using a holiday season and running it for the length of the holiday season and see how it goes. It does work, but we only recommend you do it for a limited time, say a week maximum. Otherwise what will happen is over a long period this program will result in you discounting every product in the shop and so producing customers who demand these discounts.

Moving forward 15 years, I found a useful review of successful loyalty programs in the US today here.

These programs are all very successful. What they have in common is they work with customers by engaging with them. They all work on a VIP points system, which gives the customer benefits and perks for being a member. 

 

This is what some of our clients do. Some have in their loyalty program about 8,000 members with those numbers its worthwhile doing some serious marketing.

 

If you want to see what some SMB retailers have done check out one of our clients with over 12,000 likes on their facebook page here.

 

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