Are your loyalty rewards suited to your business?

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Loyalty cards are a great way to give something back to your customers. It makes them feel valued and you’re happy you can give them a little thank you for supporting your business.

As we offer a loyalty card system on the apps we build for businesses I’m regularly asked what offer they should go with.

The first option that always springs to mind is buy X amount and get 1 free, it’s simple, effective and customers really like it because they’re getting something they’d normally pay for.

This is great for businesses with spare capacity, maybe a free chair in a barbershop/salon or empty tables in a restaurant or café.

Where it’s not ideally suited is when a businesses already runs near full capacity. These are the businesses that typically ask for advice on what they should offer.

“We don’t need more people coming in, we’re busy enough” is quite often the message.

My advice in this situation is to maximise the revenue from each customer. If you haven’t got space for more people, make the most of those you’ve got.

How can a loyalty card do this? By introducing your customers to new services or products.

We’re creatures of habit and so are often not willing to pay to try something different.

Imagine though if your reward for being a loyal customer is to try a different product or service for free, of course you’re going to give it a go, it’s FREE and you’ve deserved it building up your loyalty stamps.

The hope here is that once your customers tried it they’ll want it again and be willing to pay now they know what to expect. It’s no longer a risk for them.

You don’t even have to give something away for free, why not upgrade or discount something? A customer who normally buys a £20 bottle of wine can have a £30 bottle instead, if they love it they’ll buy the £30 next time they’re back. You’ve just increased the value of that customer every time they return.

Another option is for those with multiple businesses, particularly those that complement each other.

Perhaps you’ve got a hair salon and a separate treatment business, why not offer a free service or discount for your alternate business. Again it’s another way of people breaking their habits and not worrying about paying for something they’re unsure of, only to find they’ll come back.

Another great real world example is a butchery business that also has a grill house. If people love the steak they are served in the restaurant, why wouldn’t they want to take some home to cook themselves, especially if there’s a loyalty incentive?

One thing that’s important to take away is loyalty rewards can work for all types of businesses. It shouldn’t be reserved for those that just want to attract more customers.

Need a loyalty system for your business? Get in touch tom.hookham@abcapps.co.uk

Tom Hookham

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