The benefits of a business having a loyalty program: a consumer and business perspective

When deciding to launch or re-launch a loyalty program, there are two perspectives to take into account.

Your customers.

Your business.

In 2017 one of the biggest marketing trends is “customer experience.” Through your customers’ eyes, there are two important reason to engage in a loyalty program.

Rewards: From BOGO to discounts, “saving” money is a tremendous motivator and contributor to a positive customer experience.

Recognition: not nearly as tangible as rewards, but still an important motivator for many people, the simple act of being recognized drives customer experience.

The benefits of a business having a loyalty program are multifold.

First and foremost, a good loyalty program is a proven means of reducing customer acquisition costs. In the marketing industry, the general belief is it costs between 5 and 7x to acquire a new customer compared to upselling existing customers.

High quality customer data a robust loyalty program provides is another reason loyalty programs have become ubiquitous.

The more you understand about your customers’ buying habits, the more effectively you can tailor your marketing for peak effectiveness. Under the assumption that no single marketing promotion appeals to every customer, a well-designed loyalty program will help you begin to categorize your customers’ motivations, helping you identify those who are price-driven, those who are status-driven, etc.

To discuss the many other quantifiable benefits a loyalty program can provide your business, and to learn how other organizations have leveraged their loyalty programs, get in touch with us. It’s as easy as clicking on this link. Contact loyalloops today.

4 Reasons It’s Important to Make Your Loyalty Program Seamless

Your loyalty system is a critical part of building a strong base of returning customers who are loyal to your business. If you’re going to use a loyalty system, however, you want it to be as seamless as possible. The more effort your loyalty program takes, the less it will appeal to both your workers and your customers. A seamless loyalty program, on the other hand, will be sure to bring your customers back with a smile.

1. Your customers want the same experience every time they shop with you. They don’t want a difference between the online system and the system they see when they’re in the store. They want to know that you’re standing behind your product and that your customer service is up to the task no matter where they are.

2. Your employees want a simple rewards system. Whether they’re prompted to enter customer information or simply need a loyalty card, employees need a system that is as easy as possible. They’ll see dozens or even hundreds of customers over the course of a day–that means they need a system that’s as seamless as possible.

3. Track your customers effortlessly. You’re tracking customer data for a variety of reasons: lead tracking, enhancing the customer experience, and providing your customers with exactly what they want from your business. When you have a seamless loyalty program, you’ll be able to track customer data more easily.

4. Target rewards to each individual customer. In some cases, you may want a system that offers coupons or discounts to specific groups of customers that are more likely to bring them back. Seamless loyalty programs will integrate all of their information to ensure that you’re offering the best rewards for your customers.

A seamless loyalty program that begins at the point of sale makes it easy to calculate customer points, integrate customer data between online sales and physical store sales, and keep track of exactly who your customers are. As you work to build your customer base, you’ll discover that your loyalty program is invaluable, both in attracting customers and in collecting key data on them. Contact us today to learn more about how the right loyalty program can help your business.

CVS ExtraCare Card: Rewards & Loyalty Programs That Work

The CVS ExtraCare Card is one the best examples of a rewards & loyalty program that really works. They capitalize on human psychology in a way that is self-perpetuating.

Why are they so great? Here are 3 reasons and the psychological factors behind them.

1) The ExtraCare Savings & Rewards program capitalizes on the place of habit in people’s shopping experiences.

People are creatures of habit. They like doing things through repetition.” This insight from Linked In points out why this is smart business. And anytime it benefits both the merchant and the customer, for our purposes we can consider this smart business.

The first important thing to factor in is that “rewards programs are taking the everyday shopping habits and attaching rewards to them which further solidifies this habit.” This benefits CVS of course for greater and more repeat spending, and increased loyalty.

Additionally, this same spending, when done at the same locale, CVS, benefits the customer as they accrue the loyalty bonuses on CVS’ already low prices.

2) The CVS card hits the sweet spot for size of benefit.

Their rewards benefit is large enough to actually be meaningful to the consumer. They remain small enough to not be damaging financially to the company, but customers still notice them. It’s important to note that the rewards don’t have to be extravagant. Studies have shown that “only a relatively small financial incentive was required to change consumer behavior.” With just a little nudge a customer can feel doubly benefited by choosing a retailer that offers a rewards & loyalty program.

3) CVS anticipates and provides a solution to some of the frailties of human nature.

People forget things all the time. With the CVS card, everything about your account is electronically accessible via your telephone number or an app. As Sarah Schmalbruch shares on Business Insider “one of the worst feelings while shopping is getting to the checkout only to realize that you’re buying something you have a coupon for — and that coupon is sitting on your kitchen table.”

Getting access to your account, or to coupons electronically saved to your account, is as easy as providing your phone number, and the points will all be saved to your account, and any in-store discounts apply as well.

4) Though I only promised 3 points, I add a 4th in the spirit of CVS’ ExtraCare principles. First of all, because it’s extra. Secondly, because at the time of purchase at CVS, you will usually receive a sizable receipt with a number of coupons on the bottom, usually associated with the items you just, or regularly, purchase. This extra step right at the time of your transaction helps solidify the feeling of getting more for your money, right at the most important time.

Overall, these 3 primary principles, and the extra one, provide a model for a business of any size looking to benefit from a rewards & loyalty program.

Choosing a Loyalty Program That Works

Loyalty programs are business-friendly customer rewards that create incentives for all types of customers, while generating both income and advertising opportunities. Using a loyalty program, like Punch Card Rewards for CloverPOS, can exponentially improve your relationship to your customers by giving them a reason to shop with you. Introducing an effective system might even inspire word-of-mouth advertisement, simply because the customer was excited to receive their reward. Picking the right rewards program can turn a new or irregular customer into a loyal customer, who will generate more revenue over a longer period of time.

Loyalty programs should be streamlined, painless, and easy. Complicated sign-up sheets and time-consuming registrations deter customers who become uninterested in sharing more time than they should with you; they would rather pay for their items (which they most likely already need) and move on than save 10% on their next order by spending 20 minutes at the checkout signing up. Thrifty shoppers excluded, these tactics fall short with the average consumer.

Knowing which rewards your customer base would rather receive is incredibly important to maintaining an effective loyalty program. Some may prefer to register sequences of purchases totaling a certain amount, while others would rather get a percentage off of their next acquisition. For example, after a consumer reaches a particular spending threshold, they will receive coupons for similar or same item purchases that are valid on their next visit. Not only are they invited to return, they have an incentive to do so, based on their previous engagements with you.

With LoyalLoops loyalty program services, you can study your customers’ spending habits and maximize return buyers through researching your demographic. Our thorough programming makes it easy to capitalize and optimize your business for maximum buyer loyalty.

Why is it Important to Have Your Rewards Program be Painless to The Customer

Customer reward programs are a great way to encourage, and maintain, loyalty. They show you appreciate your customers, and they can offer an additional enticement for continued business. After all, it’s one thing to get a product or service you want at a good price, but getting the 5th one free is a cherry on top of an already great sundae.

The key to a great customer reward program, though, is that redeeming the rewards is simple. Because earning enough points is one thing, but if you have to spend half an hour on the phone talking to four different customer service reps, then it’s going to seem far less appealing. In fact, the more effort someone has to put into redeeming their rewards, the more it can actively hurt their view of your business.

Make it Quick and Painless

Why is it important to have your rewards program be painless to the customer? Because the less pain the customer feels, the better-inclined they’ll feel toward you.

Even if your business is a gym, where people come specifically to sweat and struggle their way towards their goals, you don’t want them to feel frustrated with you. You are there to provide your customers with support, and with the service they pay for. If you make them feel valued, then they’ll continue to use your service. If you don’t make them feel valued, a feeling that comes from cutting through red tape and jumping through hoops to get the rewards you’ve already earned, then they may go somewhere they feel treats them better.

Starbucks Rewards: Rewards & Loyalty Programs That Work

Statistics show that 87% of consumers in the U.S. want loyalty programs from  businesses. The Starbucks Rewards program is a rewards & loyalty program that works. The Starbucks Rewards program had over 7 million active users in 2014. One in three U.S. Starbucks transactions is paid for with a Starbucks Card. Starbucks cards can be registered and added to the Starbucks mobile app to accumulate points which translate into points toward free food or drinks. Cards can also be purchased and reloaded through the app.

Earlier this year, Starbucks upgraded their loyalty program to reward customers with more points based on spending. Rather than getting one star per visit, customers now get two stars per dollar spent. They also implemented bonus days called Double Points days which give Gold users double the points per dollar on these designated days. This change gives customers more for their money as opposed to rewarding them for just showing up. Customers who spend $20 are rewarded 40 stars instead of the 1 star they would have gotten under the previous program.

Starbucks has increased its user numbers to 11.1 million in the U.S. in 2016. By making their incentives something that consumers want (free food and drinks) and by making it easy to accumulate points (using a registered Starbucks gift card or through the mobile app), Starbucks has tapped into something that consumers will stick with, an easy and fun to use loyalty program. It brings the company repeat business as well which is the point, after all.

For more information on how to create brand loyalty and boost profits by starting your own loyalty program, contact us.

3 Ways Loyalty Programs Help When Building Your Brand

When you’re starting up your business or trying to grow it, one of the things you’re told over and over is to keep your ‘brand’ in mind. You’re told that everything ties back to your brand, because it’s the central component of your business.

Why should your loyalty program be any different? It should reflect who and what you are as a company and give your customers a better connection to what makes you the best choice for them, whatever your industry might be.  Here are three ways a loyalty program can help during the process of building your brand.

Boost Your Reputation

Your reputation is your most important asset. Loyalty programs are a boon to both new and loyal customers. The new customer is given an incentive to stick around even after purchasing, just to see what else you might have in store for them. Meanwhile, the loyal customer is made to feel that they are important and valued. When this is the case, you also increase the likelihood that customers will tell friends and family (or social media) about your brand, and that will in turn bring in more new customers. Even now, word of mouth is a brand’s best friend.

It Has Been Proven to Boost Growth

In the age of social media, getting people to talk about your brand is the way to boost growth. People who are happy and feel valued will want to talk about and share their experiences. Once you have your reputation solidified and you have people talking about your brand, that talk will continue spreading out in ripples. Those ripples are bringing more and more people in.

You Can Provide In-Store Or Digital Rewards (Or Both)

Whether your customers shop primarily online or in person, you can tailor your rewards to them. Offer discounts in store if that’s where the majority of purchases are made, or if you have more people purchasing online for a time, offer better rewards there. The choice is up to you, and it benefits all parties.

If you’d like to learn more, please contact us today!

Why a Loyalty Program Is Essential for Small Businesses

It’s vital that small businesses find ways to continually build their customer base in a fiercely competitive marketplace. It’s also important to show customers that they’re valued.

One of the best ways to retain current customers – and attract new ones – is through a strong customer loyalty program, from Loyal Loops, which encourages return business. Your business will increase revenue and provide a better customer experience by treating the business-customer relationship as a journey, rather than a one-time transaction.

Here are some reasons for and the benefits of having a Loyal Loops loyalty program:

Increased Sales
Loyal Loops loyalty programs can provide existing customers with added incentive to make a purchase. The incentive to purchase even more can increase as the rewards increase with each purchase. But it’s important to make sure that the rewards offered are in line with customer’s wants and needs. It’s also important to remember that not all loyalty programs are the same.

Built-In Marketing
Building customer loyalty can create word-of-mouth marketing by frequent customers that is more effective than traditional marketing. It can even save money on advertising and marketing efforts.

Provides Market Research
You can create a better customer experience and give yourself a competitive edge over your rivals by finding out what incentives are most attractive to your customers.

Separates Your Business From Competitors
Loyal customers can help strengthen a company’s brand, as well as make it immune from competition and changes in the economy. Customers stick with a brand they trust.

Builds a Reputation
You can increase the chances of customers recommending your business to others by building a strong loyalty program. Customers want to feel valued, and not just during the sale but after. You’re telling your current and future customers that you’re interested in building a long-term relationship – and not just making money on one-time purchases – with a loyalty program.

It Doesn’t Cost a Lot
With Loyal Loops, a business can now harness enterprise level solutions for as low as $99 per month.

You’re Not Alone
Unlike our competitors, each client is assigned a Customer Success Manager (CSM) who helps create and implement the loyalty and rewards programs you want. Once the programs are implemented weekly discussions by your CSM help you to fine tune them even more to get a maximum return for your business.

Sign up today for your free 30 day trial today!

 

 

3 Reasons Grocers Profit From a Loyalty Program

A loyalty program, by Loyal Loops, can be an effective component of your grocery store’s marketing plan. Successful marketing plans are designed to bring in new customers and keep old ones coming back. Loyalty programs have three advantages to making this happen. They can establish an excellent reputation as a brand which offers high value for its products, take advantage of customers thinking in terms of sunk cost, and channel both of these into an effective word-of-mouth advertising scheme.

1. Great Value

The best part of a loyalty program is how it works itself into your customers’ thoughts about your business. If a customer believes that they are getting more products for free, they will have a much higher opinion of your store. Even if the real savings is something as low as a five dollar discount for every hundred dollars they spend, this makes a customer feel as though they are skilled shoppers saving huge discounts. Loyalty programs focus the added value they feel like they are getting to your store, associating the better savings with your business.

2. “I can’t stop now”

A common reaction to investing time or money into a project or program is to feel that “if I’ve put this much into it, I’d be wasting it if I don’t put more.” This is the sunk cost fallacy, and is a powerful marketing tool. By tying your loyalty program to easily understood goals, customers will feel that they have already started working towards that goal and would lose all their progress if they stopped now.

3. Spread the Word

Lastly, these tools create their own word-of mouth campaign. You want your customers to proudly say that they shop at your store, whether because of the savings or out of habit. This has the power to come up in casual conversations with friends and family, spreading an effective message about your business.

These three benefits from a loyalty program can dramatically increase the profit of your grocery store. Contact Loyal Loops to find out at how you can work them into your marketing plan, and soon you’ll be seeing a lot of the same faces coming in again and again, bringing new faces along with them.

Why You Need a Loyalty Program

A steadily increasing customer base is something all businesses want, and one way to get more people to notice your business is to begin a customer loyalty program that rewards them for doing business with you. The benefits to offering these programs are many.

People like being rewarded, and they like the idea of getting needed services for free; if they know the loyalty program will result in these benefits, they’ll do more and more business with you. That stable customer base will also bring in new customers through referrals. As those referrals become steady customers, they’ll refer more people, and so on.

Customer loyalty programs also make you stand out, if you make the rewards useful and fairly substantial. These programs don’t have to be elaborate; they can be as simple as cafes offering free coffee after a certain number of purchases, or a copy shop offering free color copies or brochure printing after a certain number of transactions. But if you offer that free coffee fairy frequently, or you make your most popular copy service free, customers will see doing business with you as a great way to save their own budgets.

Loyalty programs that give you repeat business also enhance your local reputation. Repeat customers are often on a first-name basis with employees, and this can actually make your business seem friendlier and more supportive of the community. Loyalty programs don’t take much energy to implement or maintain, making them one of the easiest ways to make your business a success.