Loyalty programs have proven to be extremely helpful for businesses to retain customers. With the help of proper strategies, they can turn new customers into a loyal and satisfied clientele. Usually frequent visitors spend more on shopping as compared to new customers. They have already purchased products from the business in past due to which they are aware of the quality of service. However, there are certain tactics to maintain customers and loyalty program is one of them.
Points Based System:
The most common method of attracting customers is to initiate a point based reward system. The more purchases the customers make or the more they visit the business place, the more points they earn. These points are redeemable and the customers can convert them into incentives or discounts. However, the point conversion system should be simple so that customers can easily understand it. Confusing them with the system will take away their motivation.
Some businesses offer discount vouchers to their frequent customers. It is one of the major. They often incorporate these vouchers with points system. Customers can also apply for a shopping card for convenient recording of their shopping information. On the basis of this information, businesses offer them discount vouchers. Gift cards are similar to these vouchers and help in increasing sales.
Everyone loves games, so why not incorporate them with your business strategy! Many businesses have introduced, and inviting their customers to participate by making purchases above a specified threshold limit. When introducing a gaming scheme, it is necessary to ensure that the chances of winning are high. The higher the chances, the more customers would want to play them. The game should not be too complex and the prizes must be according to customers’ liking.
You can introduce a tier system for your business to attract customers. It is quite similar to points system. However, customers can reach the next levels by completing required points. The higher the level, the more incentives they will receive. Points based systems are suitable for short-term customers, whereas the tier system helps in establishing long-term commitments. These are suitable for large businesses offering services in different domains.
It is not necessary for businesses to spend a huge sum of money to achieve customer loyalty. You can introduce non-monetary programs by understanding the needs of your customer base. For instance, you can initiate somewith the help of earned revenue. It helps you establish goodwill of your business and many consumers will prefer to make deals with your business more than anyone else.
Partner with Other Companies:
Another recommended approach is to partner with other businesses to fulfil the needs and expectations of your customers. These are also referred to as coalition programs. Before initiating such programs, it is extremely important to conduct a market survey to understand the requirements and shopping patterns of your customers. It helps you understand the items they need the most and assists in choosing the right business for partnership.