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Why Having a Loyalty Program Now is More Important than Ever

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Topics: Loyalty

August 18, 2020

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

Structure your loyalty program so it is easy for your customers to join and participate, and think about the right fit for your business. This will also allow your employees to promote it and answer inquiries more satisfactorily. There are five kinds of loyalty programs:
  • 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.
With SpotOn Loyalty, you get the best of all worlds, with the ability to create as many rewards as you want and have customers earn “Spots” based on their number of visits or how much they spend.

2. Make It Easy to Redeem

To keep your program attractive and your customers engaged, make the process simple and straightforward. People are more likely to participate if the instructions are easy to understand. Start with simple redemptions; for every dollar spent, they get 1 point, or for every visit, they get a free snack. Consider your possibilities and make the redemptions attractive. With SpotOn’s digital loyalty program, you’ll be able to offer a VIP style experience where customers can easily join, check-in, and redeem points during the checkout process, either by using our free mobile app, typing in their phone number, or using a traditional loyalty card.
SpotOn Loyalty Tablet 

3. Be Clear About Their Privacy

Gaining your customers' trust is not easy, and you can lose it instantly. Respecting and being clear about your policies will give your customers a great sense of security. Being respectful of your clients' information is highly revered, and it will provide a good reputation.
When you partner with SpotOn, we do all the hard work for you to make sure your customer data is private. Any customer who enrolls in your loyalty program will automatically be added to your customer list on your secure SpotOn Dashboard. You can then reach out to those customers with emails, deals, and more, and your customers have the ability to opt-out at any time.

4. Show Flexibility

Being flexible with your redemptions and loyalty program, especially during difficult times, is highly appreciated by customers. A few ways to show empathy and support are to eliminate points expiring dates, lower the number of points required for redemptions, and create new rewards that can help customers during these uncertain times. If you are moving your operations online, make sure your loyalty program is available there, too, so your customers can keep enjoying their rewards. 

5. Consider Your Customers

Knowing what your customers like and want is really important for your rewards, so be creative and go beyond simply offering free items. Incentives that give customers a personalized experience with your business goes a long way. For example, consider offering discounts for veterans, free delivery for senior citizens, and discounts for essential workers.

6. Think About The Future

Recovery after the pandemic will be changeling, but this is the right time to adjust and make the changes that can help you not only now, but also beyond the pandemic. Using an in-house loyalty program fully integrated with your POS is a great way to do just that. It’s easy to implement and is a proven way of driving repeat visits and improving customer loyalty.

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.

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