A Closer Look At Customer Loyalty Programs

The world of business is more competitive than ever, especially when it comes to retail, dining, and hospitality. Standing out matters, and one of the key things that businesses today are doing is taking steps to keep their customers coming back time and time again.

It all starts with creating a great experience, but you need to go beyond that, and this is where a customer loyalty program can come into play. Recent studies have found that 84% of customers are more likely to use a retailer that offers a customer loyalty program, a fact that highlights just why these features are so important.

If you’re unclear on what we’re talking about here, think of your local coffee shop or sub store. Those stamp cards or punch cards that offer a free order after you collect 10 stamps? That’s the customer loyalty program we’re referring to, and it’s easy enough to set one up for yourself and see your customer loyalty grow as a result.

So, what do you do? The key is understanding that you’re not only working to attract new customers, but also to retain the customers you have and keep them shopping or doing business with you. There are plenty of options you can offer, including:

  • A point system that awards customers with points for purchases or other actions. These points can be redeemed for rewards of various kinds later.
  • A tier level system moves customers upwards through levels of rewards based on heir spending habits. Better rewards are available the more that customers spend.
  • Paid programs are another option, but you’ll have to really step up the kind of rewards offered if you’re using these systems. Amazon Prime is a perfect example of this – you pay a monthly or yearly membership fee and get everything from free gifts to free shipping to deep discounts.

These are just a few options to think about when you’re looking into setting up your customer loyalty program. The key is making sure that you design one that works for you and your business. It’ll not only reward your customers, but you as well.