Customer loyalty programs for small businesses can increase repeat sales by up to 50%. If customers join the reward programs for small businesses, they can get benefit from offers specially customized towards them. Many small businesses still operate on the ‘earn points and redeem’ basis, where customers can get discounts on the next purchase.
The premium members enjoy special and exclusive benefits resulting in a superior customer experience, rather than promoting the discount culture. The rewards may include premium access to products, special lanes, a priority schedule, and more. However, loyalty programs for small businesses come in different shapes and sizes. The loyalty rewards are dependent on the nature and type of small business.
A small business loyalty program is an economical solution to retain customers and boost sales for small businesses. A good rewards program for small business improves average revenue per user (ARPU) and promotes repeat purchase. In the long run, customer loyalty programs pay off handsome dividends in the form of huge revenues.
Designing a small business loyalty program has fewer requirements than enterprise loyalty programs. Unlike their counterparts, it can be operated out of a single app or with the use of bare minimum systems. Though it has lesser requirements, creating a rewards program for small businesses is not easy.
This is because it works best when it is customized as per individual requirements. However, a basic structure of the program can be applied to all while polishing the rough edges.
“Spend time to invest in systems and processes that make long term growth sustainable.”
As mentioned in the quote, a long term growth is only possible when small businesses spend time and resources to invest in strong processes and systems. A loyalty program is a good starting point. After all, it encourages repeat business.
Small businesses, just like their greater counterparts, thrive on repeat customers. Applying the Pareto law here, 80% of revenue will come from 20% of customers. That 20% of customers are vital for maintaining and sustaining the small business.
If customers repeat their purchase two times from a specific brand, with some effort, they can likely become lifetime customers. This effort needs to be done by small businesses by launching loyalty programs. A loyalty program for small businesses incentivizes and encourages customers to visit again. It also thwarts them to ignore lucrative offers from the competition.
Loyal customers are the equivalent of a gold mine for your business. Loyalty programs help you extract that gold from the mine. This is why your small business needs a loyalty program.
There are many advantages to small business loyalty programs. Most of the loyalty programs are designed to promote repeat shopping. Therefore, consumers choose businesses that incentivize it.
Most of the main street businesses have a system of discount culture, which encourages customers to buy more. A well-crafted small business loyalty program improves the value of the brand, eventually resulting in more profits.
As they say, building loyalty is building a business. Pay attention to small business loyalty to see long-term growth. On the other hand, loyalty programs can help small businesses to achieve their goals a lot faster.
Loyalty programs are beneficial as they offer value to the customers. Every small business can offer rewards that promote loyalty in their own way.
For instance, a grocery store might offer regularly purchased items for free after every nth purchase. A hair salon might schedule its priority customers before normal customers. A jewelry store can allow access to jewelry to its exclusive members before its standard launch.
In all cases, the consumers feel they are getting the value of loyalty. Though loyalty mobile apps and punch cards, and pos systems perform exceedingly well, not all businesses can afford it. However, a basic loyalty program software does not require heavy investing and can be built from the scratch.
It is cheaper to retain an existing customer than acquiring a new one. This is the single biggest reason for the surge of loyalty among start-ups. If a start-up is investing money to acquire new customers, they can spend less money while getting better returns. Also, it gradually builds the brand.
That’s why loyalty programs work. Loyalty programs generate extra revenue through membership, which can help small businesses to break even earlier than they expect.
Loyalty programs for small businesses not only help at the point of sale. But they can stay connected with customers through social media and email marketing. This improves customer service, betters customer engagement, and creates curiosity around the brand. Every small business owner must consider having a loyalty program as they are necessary for business expansion.
A loyalty software designed for small businesses must understand the target audience and most importantly the returns on the loyalty investment. A comprehensive plan needs to be chalked out so that the loyalty software matches the business goals.
Some of the few examples of loyalty software for small businesses include InviteReferrals, Spendgo, Belly, Fanbank, Yollty, and more. However, Annex Cloud offers a 360-degree holistic loyalty program for small business owners which is customized as per the requirements. A program that rewards customers while also collecting crucial user data such as email addresses and phone numbers.
Schedule a free consultation call with our experts to get the right solution for your business.