How to Create a Small Business Loyalty Plan?
Coming up with a business idea & launching it into the world is a hard task but what’s harder is to keep your customers coming back. That’s why a loyalty program for small businesses is a boon for many startup business owners who want to gain an edge over the competition. One mistake that leads to the failure of small businesses is that they focus only on attracting new customers rather than retaining existing ones.
Regardless of the industry, customer satisfaction is what you need and customer loyalty programs software for small businesses act as a bridge that helps brands to acquire, retain and build customer relationships. Let’s find out some of the top aspects that must be considered before building a customer loyalty plan and the types of programs that you can choose from.
Tips to Build a Customer Loyalty Program for Small Business
Living in an increasingly competitive world, the customer loyalty program you build must be unique and offer relevant rewards that your customers look for. However, make sure that you don’t spend a fortune on a loyalty program as you don’t have the same resources or budget as big brands. Here are some of the main aspects that must be kept in mind before building a customer loyalty program-
Give a Good Name for Your Program
The name of your loyalty program should be good enough to stand out from the rest and is related to customers’ needs. Use the name that can generate customers’ interest and curiosity to help them encourage joining your program.
Add Value to Customer Experience
Customers have infinite choices, which is why they are becoming pickier than ever. They will opt for your program only if they think it will benefit them. Your program should not only make sense but also add value to their buying experience in your business.
Offer Incentives for their Actions
The way you reward your customers is what will make your program a successful one or not. Don’t just reward them for their purchases; make sure to offer incentives like discounts on favorite products or exclusive early access to sales when they post a review, social media sharing, or referral.
Go for Different Reward Types
Every customer is unique so as their needs. It’s always the best decision to introduce a dynamic range of rewards and incentives. Incite creativity and choose the specific type of rewards as per the customers’ behaviors, occasions, etc. Don’t just offer loyalty points, you can offer value-added vouchers to let them enjoy buying from your brand.
Provide Non-Monetary Rewards
Apart from cash rewards or loyalty points, your program can offer non-monetary rewards such as opportunities, allowances, gift items, gym membership discounts, free parking plans, etc. This acts as a great way to make your business grow and keep customers happy.
Market the Program in the Right Way
Make sure that you promote the loyalty program in the right way by showcasing the benefits and allowing existing customers to share a word about the program to bring new ones. Additionally, provide different enrollment methods of your loyalty program such as enrollment through credit/debit purchases.
List of Top Loyalty Programs for Small Businesses
Research says it costs 5 times more to attract a new customer than to retain an existing one. An effective loyalty program acts as a great way for small businesses to turn one-time buyers into repeat customers. Though there are multiple program types, choosing the right one is what your business needs to retain customers in long run. Here are some of the types of customer loyalty programs that you can choose from to help your small business grow-
- Point Loyalty Programs
Point-based programs are the most popular type where customers earn points when they make purchases with your brand and the same is used later to redeem products or a discount on their next purchase. This is quite helpful for small business that wants their customers to make more purchases as customers get rewards in the form of points encouraging them to build up points & qualify for a reward.
- Target Loyalty Programs
Based on target-driven activities, this program type helps to encourage customers to feel that their purchases from your business can be a helping hand to make a difference in improving the world. These programs are more beneficial when your business partner with a non-profit organization that works in sync with your mission.
- Subscription Loyalty Programs
These programs charge a subscription amount from your customers to give extra benefits or special services that are not available for normal customers. You can offer services such as members’ only discounts, prior access to event/sales, or different personalized experiences. Such programs can be a great choice for small businesses that are selling consumable items / and those that are suitable for repeat purchases like a restaurant, laundry, gym, etc.
- Referral Programs
Another type of program that offers rewards to existing customers for bringing new customers to your business – they can be friends, family, or colleagues. Referral rewards can be loyalty points or special discounts for every customer referred and registered using their unique referral code. This acts as a great way to gain trust as customers who are already satisfied with your business are bringing new ones.
Though it may look like a daunting task to create a new rewards program for your small business, you must know that the potential payback is huge. Ensure that you consider the points stated above while building loyalty program apps for small businesses to have new loyal customers in no time.
You must keep your focus on making good customers into great ones that stay with you for a long time and increasing your business revenue. For any queries, connect with our experts to build a robust and customized loyalty rewards program that helps you retain a larger customer base.