Ah, customer loyalty programs…

Customer loyalty is the foundation of any local business success.

Think about loyalty programs for a minute.

How many loyalty program cards do you have in your wallet?  Chances are good that between your favorite stores, restaurants, airlines, hotels…you probably have at least a dozen!

And if you’re like me, you have so many cards that you store them in an app on your phone!  (Yes, of course there’s an app for that!)

So why do we carry so many of these loyalty cards?  As customers, we like to believe we’re getting more for our money. As business owners, we like them because they keep customers coming back through the door.

The Upside to Loyalty Programs for Your Local Business.

Creating a loyalty program can be as simple as creating a physical “punch card” that the cashier punches each time a purchase is made.  A typical example is a “Buy 10 Get 1 Free” promotion.

Punch card promotions offer simplicity on the business owner’s part:  just print the cards and buy a hole punch (preferably one in a unique shape).  Customers can see at a glance how close they are to receiving their reward.

Customers NEED to Know How Close They Are To Receiving A Reward!

When a customer knows how close they are to receiving a reward, they are more likely to come back soon.  So take advantage of that at the register.  A simple:  “Oh, look, just 2 more visits and your meal is on us!” can go a long way in reminding the customer of the value they hold in their hands.

By contrast, let me ask you:  how close are you to a free roundtrip flight on your favorite airline?  Unless you’re a frequent business traveler, chances are you have no idea.

The Downside To Loyalty Programs for Your Local Business.

Loyalty programs do have a downside:  the customer has to actually keep up with the card.  For anyone wanting to pare down the amount of stuff they carry every day, your card may not make the cut.  Cards can get lost, and then the customer has to start over again.  Furthermore, this type of promotion offers no tracking to determine who your best customers are, and how you might get them to come back more frequently and/or spend more each time they do.

If business owners want to track their best customers — and they should! — that takes more effort.  Sometimes a LOT more effort, as well as the cooperation of your employees.  Especially for a manual tracking system.  And many digital cards/tracking systems are cost-prohibitive to the local business owner.  And that’s why many business owners give up  on — or never even start — their loyalty programs.

There IS a Middle Ground.

The ideal loyalty programs will combine the best of both worlds:  a simple, easy to use system that tracks customer behavior so you can create customized marketing to your own customer base.  A true turnkey system that offers:

  • Online and mobile advertising that has customers looking for YOU, rather than the other way around;
  • A pay-for-performance program (after a one-time setup);
  • Creates loyal customers;
  • Encourages referrals;
  • Decreases expenses;
  • Adds a new income stream that goes straight to your bottom line profits; and
  • Allows you to make money when your customers shop elsewhere.

For information on a unique, turnkey loyalty marketing solution for small to medium-size businesses, contact us today.