How Important is a Loyalty Program?

How Important is a Loyalty Program?According to Convenience Store News, about 60% of consumers use loyalty programs.

The #1 reason people like to belong to loyalty programs is a discount.

People like loyalty programs that are simple.

Here’s just one idea. Change it to fit the needs of your retail store or restaurant.

  1. Increase all of your prices by 10%.

That may be a lot to swallow, but you will be lowering your prices for your loyal customers who keep coming back while making up the difference from your one time or less frequent buyers.

  1. Create a loyalty card. You can buy them online or order directly from your point-of-sale vendor.

A loyalty card looks just like a credit card. It has a unique customer number on it as well as your store address, phone number some sort of catchy slogan, logo, and any additional information of interest to your customers.

Loyalty cards will cost you about a dollar each or less.

  1. As an alternative to giving out loyalty cards, just get your customers phone number and enter it into your point-of-sale software. 
  1. Offer a 20% discount to anyone who has a loyalty card. So, loyal frequent customers get a discount for coming back. Customers who enter your business for the first time are helping to subsidize your discount by paying an additional 10%.
  1. If you want, you can charge your customers for their loyalty card. Let’s say you charge them $10. That will pay for your loyalty cards and even stimulate your customers to use it more often in order to make their loyalty card worth the price.

Think it won’t work? Look at who charges $99 per year for those who join Amazon Prime.

Offer some extras to your loyal customers. For example, perhaps charge them $25 and include some free movie tickets, or free drinks.

You can invent a loyalty card good for your business and several other businesses in your immediate area.

People like being part of a club. What can be better than having your customers become part of your club. This will work in any type of business.

To see some more loyalty program ideas from Penn State go to:

Using Loyalty Programs to Attract Consumers to Value-Added Businesses

If you want to read some research related to loyalty programs go to:

Hanover Research

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