Loyalty and rewards programs provide a great way to increase a brand’s visibility and boost sales. In a recent NMA blog entitled, “Loyalty Has Its Rewards,” the importance of implementing loyalty programs was stressed, especially for online stores, as consumers shift more and more into the internet and ecommerce space.
But it’s not just online. Brick and mortar stores can benefit greatly from rewards programs, too. “Rewards programs drive loyalty and spending. It has been shown the 80% of profit is driven by 20% of your customer base. Most retail shops profit because of loyal shoppers. Reward programs help businesses increase sales, while increasing their reach,” according to Tim Reynolds, NMA Director of Member Support.
Rewards programs are worthwhile for a number of reasons and it’s been proven that users join them not simply because of discounts or great deals. For starters, they believe they receive better service. Secondly, they ultimately gain a closer relationship with a specific store or brand. Loyal customers also write reviews based on their experience, providing free advertising through grassroots word of mouth marketing. Reynolds adds, “A rewards program gives the small guys a chance to compete with larger retail outlets that have sophisticated programs. It levels the playing field and creates constant foot traffic in and out of your business.”
Not only can brick and mortar establishments offer loyalty programs in-store, they also have the unique advantage of being able offer them online as well, if they are equipped to do so. In a sense, this allows them to have a longer reach than simply using a singular method to attract and keep loyal customers. Savvy business owners understand this and employ strategies that create a larger influence.
With technology allowing for deeper personalization and customer mapping, loyalty strategies are becoming even more valuable and intelligent, according to Eagle Eye Solutions, a Saas technology company that validates and redeems promotions. Utilizing advanced methods like these allows merchants to analyze the effectiveness of their rewards programs and campaigns while understanding customer behavior. Owners who are involved in the overall marketing strategy of their business and know this are already ahead of the curve when it comes to really knowing their customers. In addition, advanced POS systems are now able to support software that can track consumer behavior and tailor specific rewards to individual customers.
It’s important to remember that a business can only maintain its loyalty program as long as it has clients that are willing to subscribe to it. Additionally, while it may be a no-brainer to implement a loyalty or incentive program, the hardest part is figuring out how to keep users happy and that generally involves catering to user needs while keeping rewards current and relevant.
Implementing rewards programs keeps your customers happy and so does providing them with convenient payment methods. NMA works to ensure that your customers keep coming back and we help keep your credit card processing costs low. Get started today or contact us to learn more about customer loyalty and marketing your store’s payment system!