Building Customer Loyalty Programs for Small Business: 3 Tips for Success
80% of your small business’s revenue likely comes from the
top 20% of your customers. If you’re looking for ways to increase your revenue,
a great place to start is increasing your customer retention. A customer
loyalty program can help you do just that. If you think customer loyalty
programs are just for big businesses, keep reading to learn three tips for building
1. Set a goal
The first step in building a customer loyalty program is
setting a goal. Your goal will help you determine the type of program to
implement and how often your customers will be rewarded.
Your goal might be to increase the dollar amount each
customer spends when they shop with you, so you might use a points-based
program. Or, you might want to increase how often people shop with you, so you
would consider a punch-based system. If you’re trying to increase brand
awareness, then you might consider rewarding shoppers who refer
someone to your store or share your small business on social media.
When you’re setting goals for your new customer loyalty
program, make sure that they’ll help your small business achieve its overall
2. Add value
After you’ve determined your goal, think about all the ways
you can reward your customers for joining and utilizing the program.
For example, if you decide to use a point-based program, you
might give each shopper 1 point per $1 spent, then offer $10 off their purchase
when they reach 100 points. If you’re using punch cards, you might give your
customers a 10% discount every time they fill up a card. Or, you could give a
loyal shopper 15% off their next purchase each time they refer someone new.
Many consumers may be enticed by these discounts but think
beyond just the rewards for reaching a certain number of points, completing a
punch card, or referring a friend. You can surprise your loyalty members with other
perks by offering sneak peeks of new products or keeping the store open after
hours for loyalty members during busy times of the year. If you advertise all
the perks of joining your new loyalty program, you’ll have a better chance of
getting people to sign up.
3. Make it easy to sign up
When you’re ready to launch your program, make sure you make it easy to sign up and consider giving shoppers multiple opportunities to join. Let customers sign up quickly while they’re checking out, include a link on your social media profile, or have a sign-up form embedded on your website. If you broadcast the perks and make it easy to sign up, customers will be excited to join and continue shopping with you. It costs less to keep an existing customer than to attract a new customer. Learn 5 more ways you can boost customer retention.