A free coffee, a discount for points or a surprise for loyalty? Loyalty programs are not only about rewards, they are mainly about building relationships with customers. It strengthens their loyalty and brings long-term advantages.
It turns out that more than 60% of customers are willing to remain loyal to a brand if they receive benefits for their loyalty. This is especially true in a competitive environment, where a well set-up loyalty program can be the decisive factor in whether customers return.
Every business, however, approaches loyalty programs in its own way. In other words, the same that works for the customers of a small shop, café or beauty studio next door does not necessarily have to work for your customers. So consider first which of the following rewards is the right one for your buyers and customers.
Discounts
Discounts are not for everyone – especially if your product or service targets customers who value quality and exclusivity over low prices. Despite that, discounts are one of the most effective forms of rewards because they work on most customers.
Discounts work best where the goal is to boost the frequency of purchases, or reward those that buy repeatedly. They are ideal for those goods and services in which price plays a key role. In such a case, a discount can be the best strategy to strengthen long-term relationships with customers.
Examples:
• a 20% discount on the 5th purchase in a clothes shop
• every 4th massage with a 10% discount
Free Product
If customers won’t miss out on discounts, what about a chance to get a free product? That’s simply a pleasant surprise which no one wants to lose out on.
This type of a loyalty program can be especially attractive for businesses in which customers shop frequently, for small amounts of money and it is essentially a routine activity for them.
An example of such a situation could be having a daily coffee on the way to work or a regular Friday pizza order for a movie night.
Examples:
In this case, a café could offer the 10th coffee for free, and a pizzeria could reward its customers with a surprise in the form of every 7th pizza for free.
Subscription
A loyalty program in the form of a subscription simply means customers’ loyalty on a different level.
A loyalty program in the form of a subscription works especially well for businesses that offer regularly used services or products and want to create a stable income and deeper relationships with their customers.
Subscription-like loyalty programs bring a lot of advantages to both businesses and customers:
- Comfort is key – customers appreciate that they do not have to order again or think of their regular shopping, receiving services or products automatically.
- Modern subscriptions also benefit from customization and predictive analysis thanks to which companies can accurately estimate customers’ needs and tailor their offer, which can make profits rise by up to 30%.
- Subscriptions are also economic because they allow access to services for a fixed monthly fee and eliminate unexpected costs.
- For sustainability-oriented consumers this model represents an ecologically friendly alternative because it limits wasting and supports a circular economy.
These characteristics make subscriptions a tool that boosts not only customers’ satisfaction but also the long-term business strategy.
A café can offer a monthly subscription for a fixed price that includes an unlimited number of coffees, and a beauty studio can make available a membership with regular treatments and discounts for complementary services. Subscriptions give customers a feeling of exclusivity and a long-term commitment
For businesses that provide regular services, a subscription-like loyalty program can be a benefit for both parties. Your customers get a discounted price and you gain their long-term favor.
Whether you choose discounts, a free product deal or a subscription, a loyalty program can significantly help your customer base and happiness flourish. You just need to tailor it to your business’s needs and your customers’ values.
You can find a loyalty program also in the Elementary POS point-of-sale system with the Business plan. You can easily set it up and then manage through the Elementary POS Back Office. Thanks to its simplicity and versatility you can customize it to fit your business.
