Retaining customers is one of the biggest challenges of running a business. Customers, no matter what the situation is, want the best experience, but with the COVID-19 pandemic still developing, uncertainty is everywhere. To combat this and encourage customers to come back, businesses need to show customers extra love and attention. One of the best ways to increase customer retention and provide your customers with numerous incentives for visiting is with a loyalty program. Loyalty programs are also great for boosting customer conversion rates and driving customers to spend more. Here are six things to consider when implementing, or improving, a loyalty program.
1. Keep It Simple
Points. The most common program, customers have to spend money to gain points. The more they spend, the more points they get to redeem later.
- Cashback. In this kind of program, customers get money back with their purchases. Once they reach a certain amount or reach a specific time limit, they can redeem their cash rewards.
- Tiered. This loyalty program has "levels of loyalty." Every time customers reach a new level; they get new rewards.
- Discount. This program is very simple—discounts are applied at checkout, and clients pay for a lower price than the original.
Frequency. This program's specialty is to drive customers' visits. Businesses determine how many visits are needed to redeem the reward.
2. Make It Easy to Redeem
3. Be Clear About Their Privacy
4. Show Flexibility
5. Consider Your Customers
6. Think About The Future
The SpotOn Loyalty rewards program has yielded amazing results for merchants across the country, particularly when combined with our full suite of customer engagement software tools.