Can You Handle A Customer Loyalty Program?
Customer loyalty programs come in a number of forms ranging from the personal, “low-tech” to the more impersonal “high-tech” ones. But, are they right for your business? For most business to consumer concerns, as a consumer, I have to answer this question with a resounding “Yes.”
Why?
As a seller of goods or services, you have to find a way to differentiate yourself from your competition. You can only shave so much off your prices before getting to the point where you can’t sustain your business. A loyalty program can help you offer better service and reward your repeat customers. The more technical the program, the easier it is for your customers to participate and have choices in how you will reward them. It really can be a “win/win.”
How?
The least technical and the most personal is for you, the owner or manager of the business, to get to know your customers personally. After a while of dealing with them and offering exception service you will begin to see who keeps coming back. The more you learn about them, the more you can offer them in discounts or extras which will make a difference to them. This type of system is difficult to quantify without keeping some kind of records, so unless you have an exceptional memory you might want to keep some kind of diary if this is to be your approach to a loyalty program.
Another, more technical, approach is a punch-card system. This is simple to start and implement. Decide on an offer – something like if you purchase 10 tubs of banana guacamole the customer gets the 11th tub free. Print some cards, hand them out, and punch the cards when the customer presents them. Simple and easy for you and the customer.
More technical is the electronic card system. In this case, you have your customer sign up and give them a card which they can scan or swipe at purchase time. This is the most technical and complicated, but perhaps can offer the greatest reward.
This type of system allows you to set up different ways the rewards can be accrued and redeemed. One system which comes to mind is casino rewards programs in which points can be earned playing machine or table games and then can be redeemed for cash, hotel rooms, meals or in stores based on the cash value of the points accrued. Customers can go on line and see how many points they’ve accrued, as well. Certainly a rewards program doesn’t have to be so complex, but this type of system allows for that kind of flexibility of offerings.
Bottom Line
Rewarding loyal customers is easy enough to do – and if you’re not you should be doing so. Find a way which works for you, your customers and your employees (let’s face it, if the program isn’t used it does no one any good). Start small and grow as needed. Your customers will appreciate your efforts and reward you with more of their business.
photo credit: JoshMcConnell
