Tip of the Month: Build Loyalty to Grow

Jan 27, 2022 2:53:08 PM | tips Tip of the Month: Build Loyalty to Grow

It takes time to build and strengthen relationships with customers so that they may grow into a habit of continuously making purchases in your store.

Customer loyalty is an important element of a business’s long-term success and it does not happen overnight. It takes time to build and strengthen relationships with customers so that they may grow into a habit of continuously making purchases in your store. Loyalty programs are one of the most popular tools that many small businesses use to encourage customers to return to make purchases or use the service again.  

Why build a customer loyalty program?

Apart from the benefit of encouraging positive behavior by rewarding customers for their frequent engagements with your store, several great bi-products come from this marketing strategy.  Here are just a few: 

  • It allows you to receive insight on your customers’ preferred products for promotion and other marketing purposes.
  • It serves as a way to make customers feel recognized and special, as it creates a sense of belonging and emotional connection to your business. 
  • It has the possibility of leading to a higher customer retention rate and revenue growth.

What are some loyalty program ideas that you may consider?

  • Give your customers a reason to join.  
    • Provide benefits and incentives.
      • For example, offer a $5 coupon for joining, and an ongoing 10% discount for all purchases thereafter as a member benefit.

  • Reward customers to make them feel special.
    • Offer unique benefits throughout the year for remaining in the loyalty program.
      • For example: Provide an early discount for members or a free drink with every purchase.

  • Retain customers with long-term rewards.
    • Incentivize customers to stay with your store. 
      • For example: Separate membership levels based on the length they have been with your store (bronze, silver and gold) with different rewards and privileges.

Well, it’s your turn again to put some theory into practice! Loyalty programs may seem to be an investment at first, but the potential long-term benefits from a successful loyalty program may go far beyond the investment you made at the beginning.  As the author Chip Bell said, “Loyal customers, they don’t just come back, they don’t simply recommend you, they insist that their friends do business with you.” 

Happy marketing! 

Written By: Wish Local Team