For small businesses and local retailers, your POS does not likely have a deep loyalty program.
Naturally, you’ll want to explore add-on value integrations that offer deep loyalty programs with advanced features that can help you scale your business over time.
YOUR LOYAL SHOPPERS BENEFIT THE MOST FROM A LOYALTY PROGRAM
According to McKinsey Research, 29% of customers shop around, yet they ultimately repurchase from the same brand. Your top 20% value customers are likely to be even more loyal in driving your revenue, one of the reasons why they keep coming back is your loyalty program. This is because as good as your brand is, as familiar and trust-worthy as your products and service might be, a good loyalty program incentives customer retention to your niche audience.
WHY ADOPTING A LOYALTY PROGRAM FOR THE HOLIDAYS MAKES SENSE
Before the holidays start is a great time for small business retailers to adopt a loyalty program, this is because holiday season is typically peak buying season for many small business stores and locations, and retaining some of that new traffic as return shoppers will be key in growing your business. Also comparing your holiday sales with a loyalty program vs. last year without one, gives you a good baseline as to the efficacy of a loyalty program.
WHY SMART SOFTWARE LOYALTY PROGRAM CAN LIFT SALES
According to SmarterHQ, of millennials who consider themselves brand loyal, those who prefer personalised communications have a 28% higher brand loyalty than those who do not, meaning the smarter your loyalty program with automated and predictive loyalty communications, the higher your lift among mobile native shoppers.
Having a loyalty program based on data is therefore of key importance where marketing automation in the form of SMS or Email marketing is automated by the loyalty software itself with deep feature personalized offers. This is deeper than most loyalty programs native to POS systems.
AGE OLD TRUTHS OF BUSINESS
For new and growing smaller retailers and merchants, customer retention is sort of a big deal. This is due to a very simple forum that says it’s easier to retain new customers than to find new ones. According to an oft quoted study by Bain and Co., increasing retention rates but just 5 percent, can in the long run boost profits anywhere from 25 to 95 per cent. We also know from the literature, that attracting new customers typically costs 5x more than keeping existing customers.
KEEPING OPT-IN EASY AND SIMPLE
The easier it is for customers to sign-up and benefit from loyalty programs, the more small businesses can derive a benefit from them. A good loyalty program will seamlessly drive more repeat spending and engage customers to return to the store or SMB location. The customer data can also help small businesses track particular customers across the customer journey and learn from the most valuable customer audience.
According to Vend POS, the key ingredients of a winning loyalty program are:
- Surprise and Delight
LOYALTY ISN’T JUST A WINNING FORMULA, IT’S RELATIONSHIP BUILDING
An effective loyalty program can also do the following actions:
- build and nurture high value customer relationships.
- create a custom loyalty program that segments your customers based on data.
- send and automate SMS and email marketing offers based on the retail seasonal calendar or customer events.
- measures the sales impact, ROI of a loyalty-marketing campaign and value of different segments of customers while providing deep customer analytics.
According to Accenture (2016 study), customers who are members of loyalty programs, typically will generate between 12 and 18 percent more revenue than non-members. At the end of the day, the best loyalty programs target and benefit your high-value VIP customers and create enjoyable customer experiences that elevate your branding and the improve the bottom line value of repeat purchases and memorable deals.
While a loyalty program isn’t a must-have for all small businesses, for those that want to grow smarter and build more personalized relationships with their customers it’s a win-win.
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