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Learn how you can get the most of your customer loyalty program
Why a Loyalty Program is Important For Your Small Business
The idea behind a customer loyalty program is quite simple yet powerful – Rewarding customers and increasing repeat purchase rate. For instance, My Starbucks Rewards, the reward program of the coffee giant, significantly drives the company’s record growth by gifting points to customers for making purchases. Starbucks claims that its loyalty program had 16M active members in March 2019, with an 11% increase in the customer base in Q2 2018.
Like large companies, loyalty programs are also imperative for small businesses. Whether the goal is to enhance customer loyalty or boost sluggish revenue, a well-designed loyalty program serves as a boon for all kinds of businesses, regardless of their size. Here we have shed light on a few reasons why you should also turn to customer loyalty program software for your small businesses.
Why You Should Invest in Loyalty Program
A Repeat Customer Has a Lot to Offer – As said earlier, a loyalty program can increase repeat customers, which, in turn, enhances your business’s revenue. A repeat customer spends 67% more than a new customer. And they should be rewarded with exclusive points or coupons for this action, as retaining customers is less costly than acquiring new ones. Besides, rewarding customers is the best way to appreciate them and motivate them to continue to be your brand advocates. They can also spread a word about your business on their social networks, helping you increase customer base even more.
Stay Competitive in the Market – Given that large brands have more resources, locations, amount to invest, and the ability to offer lower prices, it can be hard for your small business to compete with them. However, launching a loyalty program is an easy way for you to stay competitive in the market dominated by giants.
For instance, many customers may not love the coffee at a big brand but love the fact that they can earn points for making purchases at their store. To gain a competitive edge, a small coffee shop can offer good quality coffee and reward points to give customers a reason to return to your store repeatedly.
Loyalty Programs are Not Expensive – While some businesses spill a lot of money into them, you don’t have to follow the same strategy to obtain promising outcomes. Loyalty programs don’t cost a fortune to businesses. A cost-effective program launched by small businesses is as beneficial as placed by big players. A customer loyalty program software named CheerMe has way lower subscription rates than other loyalty program providers. Moreover, a reward program allows you to earn more than invested as earned reward points encourage customers to shop 2.5 times more than customers who don’t have points in their bag.
Loyalty programs are not just for big players. They can provide ample benefits to small businesses, such as improving sales, enhancing communication, strengthening customer bonds, attracting new customers, and more. Thus, we can say that a loyalty program can expedite the growth of your small business and help you reach new heights.