3 Reasons To Profit From A Loyalty Program
You may have a wallet or keychain filled with loyalty cards. Everywhere you go there seems to be someone offering a rewards program for shopping. This is not a coincidence. A loyalty program that is properly implemented and implemented can provide a store with more sales, information about valuable customer behaviour and ultimately more profits. Independent Grocers are in constant battle with adult retailers. Most of these retailers offer reward programs. So why not most independents? Some will say it is too expensive, time-consuming or it is not necessary. This is simply not true.
Loyalty reward programs can be as simple or complex as retailers want, running quickly and smoothly with POS and back office programs, and are certainly required for any serious independent grocery vendor to overcome competition. There are three main reasons why a loyalty reward programs make sense to any retailer.
1) Increase basket size and profits
Prove that customers will simply spend more to reach a certain number of points or rewards. This is a psychological game that almost always ends in favour of retailers. The expected savings associated with the points or bonus exceed the fact that they may not have purchased a commodity if the rewards from the purchase were not present. In the customer’s mind, the additional purchase is reasonable, approaching their reward or desired points. This provides the retailer with more sales that far outweigh the discounts it gives on qualifying bonus items.
Find out what items your customers buy, how they shop when they shop, and when they make a purchase, and which sections use the built-in reports available in some loyalty programs. The customer behaviour data you get from the loyalty program can be used to develop targeted marketing efforts to increase sales, let alone add a personal touch to each goal to make your customers feel special.
Marketing can be expensive. Loyalty programs can make marketing a breeze. Some loyalty programs, such as Loyalty Lane, offer users email marketing, printable promotional materials, bonus sites, and the ability to create multiple bonus groups. Develop your loyalty reward programs by providing your customers with e-mail messages on their birthday, when registering, advertising special rewards and communicating with lost customers to name a few. The information gathered from the shopper’s behaviour and the subscription form allows you to customize each email with names and offers related to that customer group.