Got a loyalty card in your wallet?

Promotional Giveaways - Small business loyalty programs are a great way of showing customers

that they are valued. They encourage return business and help you gather information about your

customer demographic. Loyalty programs can also boost your marketing efforts. According to

Experian CheetahMail, email campaigns that target loyalty program members are more

successful – generating higher open rates, transaction levels and revenue. Even emails that invite

prospects to join loyalty programs outperform regular email blasts.

Of course, getting your loyalty program right is critical. Industry experts believe the future of

loyalty programs lies in mobile technology. But not everyone has a smartphone or the right app

loaded to take advantage of your program. The key is creating a program that is accessible to all

and easy to use. Rewards Program

Here are seven tips for starting a small business loyalty program:

The Easy Way to Go – A Loyalty Punch Card

If you’re new to loyalty programs and want a low-tech option, the simple punch card formula is a

good place to start. Just design and print out a card and offer a free gift after a certain number of

purchases have been made. There are a few obvious drawbacks to this method – you can’t track

consumer demographics and the program is 100 percent reliant on customers’ carrying that card

around with them in their wallet. That’s if they even remember it’s there!

Start an Opt-In Program

Another easy option is to set-up a simple “sign-up for offers/rewards” program. Ask customers

to share their email addresses and add them to an opt-in email list – you can do this online or at

the point of sale. This form of email sign-up eases the application process and spares your

customer the hassle of having them download an app or share heaps of personal information. In

exchange, you’ll promise to send them regular communications and special offers only available

to loyalty members. As mentioned above, email campaigns that target loyalty members can be a

great source of revenue – and, of course, are trackable. Reward and recognition

Consider a Premium Loyalty Program

If you want to reward customers who spend the most, develop a program that limits who may be

eligible to qualify. Use your customer relationship management software to track higher value

purchases over time and invite customers who meet certain thresholds to join. Alternatively,

simply invite high-spending consumers to sign up for your program at the point of sale.

Offer Branded Loyalty Membership Cards

There are a number of commercially available loyalty card services that let you design branded

cards, track and manage customer behavior such as number of customer visits to your store,

average spend and more. Many also let you send targeted email and text campaigns to members.

You can even add on other services such as branded gift cards.

Add a Digital Component

While not all your customers will be digitally savvy, chances are many are and it’s increasingly

important that you cater to the growing mobile loyalty trend. There are many apps that small

businesses can tap into for free or for a fee. If your business already uses a mobile payment

platform, many of these are now integrating loyalty programs into their offerings. Explore your

options and look for services that offer social media integration – making it easy for customers to

share your awesomeness with their friends and even earn points for likes, shares and online

reviews.

Choose Your Incentives Carefully

Reward loyalty with some class. Freebies don’t always appeal to all and they can even de-value

your services. For small businesses, customer loyalty is founded first and foremost on great

service, a personal greeting, and the tried and tested quality of your products or services. So

think of ways you can make your incentives and rewards as unique as your business. Experiential

rewards are always popular. For example, a hair salon could offer a monthly workshop that

offers free makeover tips to loyal customers. These experiences add value to your customers’

lives, build community, help your business stand out and give customers reason to keep coming

back.

Communicate Regularly With Your Members

Treat your loyalty members royally. Segment them out in your email and direct marketing efforts

and communicate with them often. Share news of upcoming loyalty incentives or events and

don’t forget birthdays – offer something unique to members or opt-in email subscribers during

their birthday month.

For more info visit Rewardscorp employee Rewards Programs and Reward and recognition programs