Customer satisfaction is what every business look for, to attain the success they need. Loyalty programs act as a bridge that enables brands to build long-lasting relationships with customers. Research by Invesp says it costs 5 times more to attract a new customer than to retain an existing one. Customer Loyalty Programs for Small Businesses can be a boon as it helps to turn one-time buyers into loyal, repeat customers. Though there are lots of different loyalty program types, choosing the right one is what you need to be able to encourage customers to buy from your business.
Let’s take a look at some of the best types of customer loyalty programs that can help your small business grow-
Point-based Loyalty Programs
Known as the most popular type, point-based programs enable customers to earn points when they make purchases with your brand and the same points can be used to redeem products or get a discount on the next purchase. This is helpful as it offers rewards in the form of points encouraging customers to make more purchases to build up points & qualify for a reward.
Target-Driven Loyalty Programs
This one focuses on target-driven activities, which encourage customers to feel that their purchases from your brand can make a difference to improve the world. Such loyalty programs are more effective if you partner your brand with a non-profit organization to sync with your mission.
Subscription-based Loyalty Programs
This is one of the effective ways to convert customers into repeat purchases by charging a fee to get exclusive services such as discounts only for members, early access to events/sale,s or other personalized experiences. These programs are especially beneficial for small businesses selling consumable products / suitable for repeat purchases like a restaurant, laundry, health, etc.
Referral Loyalty Programs
These programs enable brands to reward customers when they bring new customers to your business which can be their friends, family, or colleagues. You can offer extra reward points for referrals or a special discount when a new customer signs up using your unique referral code. This is helpful as it acts as a great way to gain the trust of potential customers.
Community-Based Loyalty Programs
Bringing like-minded customers together through a loyalty program is one way to help them engage and learn with one another. Though this one doesn’t offer any tangible reward like a discount or points, it gives a chance to connect with people with similar interests. They connect, share their experiences, learn from one another about the product, which gives your business a chance to improve.
As we live in an increasingly competitive business world, your customer loyalty program should be unique and offer relevant rewards that customers value the most. This is essential for your small business to build a competitive advantage and create a difference. However, you must ensure that you don’t spend a fortune on a loyalty program as you don’t have the same budget to invest as big brands. Before you build a Customer Loyalty Program Software, take time to know your customers & their buying habits to offer them suitable rewards.