Customer loyalty is when a customer advocates for your business, repeatedly buys your services and products, and when a customer becomes a brand ambassador for your brand.
Most businesses aim to have loyal customers, who passionately advocate and continually use their business, this could be for a range of reasons such as the value they receive, the customer service.
Loyalty programs or memberships are structured marketing efforts which influence repeat buyer behaviour.
Customer loyalty schemes can be used in most sectors of business and can include marketing activities such as loyalty cards, rewards card,
point’s card, advantage card, or club card which identifies the cardholder as a member in a loyalty program.
How can you reward and encourage customer loyalty in your business?
Small businesses can adapt loyalty reward programs which reward loyalty and encourage loyal buying behaviour which is beneficial to the company.
Here are some of our favourite customer loyalty program ideas, for your business:
#1 Points Collecting
This is the most common loyalty program.
Frequent customers earn points, which translate into some type of reward: discount, gifts, or special customer treatment, customer purchases toward a certain amount
of points to redeem their reward.
Reward programs based on service usage levels (frequent buyer programs) have become common in the transportation and hospitality industries. This type of loyalty program is most appropriate for businesses that encourage frequent, short-term purchases.
#2 Gift Card or Gift Vouchers
Businesses can introduce gift vouchers with specific amount and validity of their company.
With this gift card it fastens unclear the buyer to go to the retailer who has issued the gift card and spend the amount.
With the available funds of the gift card customer will buy the goods more than the cost and increase in selling of goods. If one likes the business and the availability of goods, then customers are likely to become regular.
#3 Charge an Upfront Fee for VIP Benefits
Charge one-time (or annual) customers to start collecting
points by their purchases. Clearly this system is most applicable to businesses that thrive on frequent, repeat purchases. For an upfront fee, the customers are relieved of inconveniences that could impede future purchases.
#4 Non-Monetary Programs around Your Customer's Values
Providing value to customers in other
ways than discount and dollars rewards. Depending on the customer’s values, and on the industry, customers may find more value in non-monetary or discounted rewards.
#5 Partner with another Company to Provide All-Inclusive Offers
Understanding customers’ lifestyle
and their purchase process will help determine which company is a good fit as a partner to reward the loyal customers. Providing customers with valued services beyond what the company can offer will grow the companies’ network to reach their partners’ and customers.
#6 Loyalty Card Program
This is an incentive plan that allows a retail business to gather information about its
customers. Customers are offered product discounts, coupons, points toward merchandise or some other reward in exchange for their voluntary participation in the program. Another goal of a loyalty card program is to build
repeat business by offering participating customers something that is not available to non-participating customers.
#7 Frequent Buyer Program
Small businesses can offer the low free service to the customers if the number of purchases or
the total purchase amount reaches a specific limit.
This creates the tendency in the customers to make those counts of purchases or the total purchase value in order to get the offer. It increases the sale of product leading to
customer loyalty over a period of time.
Would you like to incorporate any of these into your business? Book a consultation with Makaela the founder of Nurture Digital Marketing.
To find out more about how we can support you with customer loyalty program for small business, please visit https://www.nurturedigitalmarketing.co.uk/contactus.
See our Marketing Management Service to see how we can help you with your marketing. Need a helping hand with your customer loyalty program or with your marketing https://www.nurturedigitalmarketing.co.uk/marketing-managament
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