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We all want a loyalty program that will give the greatest return! To do so, you must determine the type of system you are searching for. You want to pick a program that will lead to positive Yelp reviews, social media growth, and brand/business growth. In this blog, we will discuss six potential reward systems for your business!
Simple Points-Based System is the most commonly used rewards program. It’s simple, “spend more to get more”. Customers who visit your store frequently, earn points and those points get them percentage discounts or cash off their next purchase. IMPORTANT TIP: this system is meant to be as simple as possible. It’s meant to make rewards, rewarding, and not difficult to reach.
The Tiered-Based System is best represented by a triangle. The more often a customer shops with you or the more they purchase, the higher up the triangle they move; with each level jump, they will get new discounts or offers!
> If you hope to increase the average number of shopping trips to your store, reward them for each visit.
> If you hope to increase the average sale, base the system on the dollar amount
An upfront annual VIP fee quickly sets the tone and expectation for this loyalty program. Being charged a fee, they are actually avoiding purchase barriers. Offer a 5%-15% discount on every purchase that year. Host exclusive events, first look at new products, VIP early access, etc. Even offer to send a gift at the end of the year so they continue to sign up again and again! Customers will talk about this reward system and others will get FOMO and will sign up, too!
We value our customer’s wants and needs, right?! Depending on your industry, your customers may find more value in non-monetary rewards. Gifts with purchases and product samples are great examples of non-monetary rewards! Upon receiving an additional item, your customer physically sees a value increase in what’s within their shopping bag.
If you can avoid additional costs with these items, do!
When giving away product samples, consider what your customers usually shop for and amazing categories/items that are sometimes overlooked.
TIP: In your POS system, mark the last sample someone received. That way, you can ask them what they thought of it. This will give you great product reviews + knowing the best full-sized products to add to your inventory.
Think of this reward program as a “room for everyone” mentality. Consider a rewards system that works for you and another business to retain and gain each other’s shoppers. When you provide your customers with value, that’s relevant to them but goes beyond what your company can offer them – you’re showing them you understand and care about their needs.
Who doesn’t love games?! Consider turning a rewards system into a game. A fun, entertaining, and effective rewards program will create a unique experience for the customer. Games must be easy to understand and have as little room for error as possible. Get creative and design a game to increase check averages and frequency of visits! Make sure that the price is something that will motivate customers to want to participate.
Remember, loyalty programs should increase customers’ happiness, customer retention, average dollar sales, or any combination of the three! Take note and record the average number of times customers frequent your store and their average dollar sale before and after a loyalty program launched!
Having a loyalty program option for customers may be the competitive edge you need and may help you drive more sales. It’s important to consider how a rewards system could benefit both you and your customers, as it should be advantageous for both parties!