Loyalty programs are a marketing strategy that rewards loyal customers that frequently engage with you. They will give you a competitive advantage.
The principal benefits
Engagement will increase your customer retention rate. Even a slight increase here can result in a dramatic improvement in shop performance. As a rule, it is much more expensive to get a new customer to replace the one you have so it is much cost-effective.
With a loyalty program, you can communicate anytime to your customers
Engaged consumers buy more and more often. This makes loyal customers are more profitable.
They are also more forgiving if something goes wrong, loyal customers will be often more lenient as they remember when it went right.
Your loyal customers will be a great source of new business, for almost all businesses, the best form of advertising is referrals from friends and family.
Improved customer data
Running a loyalty program in your shop gives you the tools to monitor who is buying in your shop. Every sale on the program is recorded in your point of sale software to a customer.
You can then profile your customers, create segmentation and then tailor your offerings to specific groups to cross-sell and up-sell.
Essentially what you get is a complete view of your customer buying habits.
You can examine your membership, how big is it, is it growing, declining?
Where are the members coming from to you?
How many are using it and in what frequency.
Compare member spending vs non-member spending
The primary purpose of a loyalty program is to get you more customers and get them to spend more. Is it? So check the sales totals, basket size, profitability etc.
Pre-membership vs post-membership spending
Are you just giving away a discount to existing customers, what you need to know is it working?
A loyalty program also allows you to discover not only profitable customers but also unprofitable customers. People that only buy the specials and discounted lines which often make up in some industries 13% of the customers. With a loyalty program, you can exclude these people from your specials.
With our system, you can experiment with special promotions and discount programs too.