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Why Do Retail Businesses Really Need Rewards Program Now?

The competition between businesses is continuously going tougher and it became harder and harder for retail businesses to persuade their prospects to choose them and their products or services. If you are really that serious of getting new customers and you want to beat your competitors, you should realize that it’s time to give back to the community and to those people who never stop from patronizing your products or services. Show them your appreciation for their loyalty to your business.

Why Should You Have A Rewards Program Today?

These days, more companies came up with a loyalty program to give thanks to their valued customers and also to increase their profits. People, even those who are rich, are still very interested in getting freebies. They can’t resist any special promos offered to them. Just imagine that when you decided to offer some of your products with discounts for a day and you announce it a few days before the scheduled date, people will take advantage of that opportunity.

Consumers today are more practical when it comes to spending their money and buying anything. They take advantage of special promos and discounts. What more if you will be offering a loyalty program for those who are buying your products or availing your services for months to years?! People love rewards and loyal customers simply deserve to have these. So how you will be able to come up with the best loyalty program for your customers? Here are some important things that you should consider so you can also implement a loyalty program in your business today:

Think about the Concept

With a rewards or points-based customer loyalty program, the customers would have fun in spending more on your business because you guaranteed to them that the more points they get from their purchases, the greater rewards they will get soon from your company. The rewards can range from having pricey designer items for free to even all-expenses paid vacation trip courtesy of your business. So what are you still waiting for? Pamper your customers and make them willing to continuously patronize your company.

A Rebate Program

A rewards program that is less fancy is a rebate program. It’s where a customer can get a percentage from their item’s total cost as a coupon or a voucher that he or she can use in paying for more items from your business. It is really an ordinary customer loyalty program as compared to a rewards system. This will give your company some extra profits because over the rebate rewards program your customers would end up in spending more on your products or services. It is for the reason that coupons can’t be exchanged for real money or it can be used for other purposes.

Loyalty = Profits

More people are still viewing that being capable of providing your loyal customers with excellent customer service doesn’t automatically guarantee a company that consumers will stay. It is why there’s a big need for an efficient customer rewards program. Whilst exceptional customer service could end in a customer buying your product or service more often, a well-designed rewards program would ensure that they will never choose your competitors and will suggest your services to your friends.

To get started, you need to use the loyalty card program software. Let POKET help you come up with the best program for your retail business. Visit www.poket.com to learn more.

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7 Myths About Customer Loyalty Programs

A company thrives on customers. As much as it is important to gain new customers to keep the company running, it also important to maintain the old customers. Gaining a new customer costs a lot whereas having a repeat customer cuts back on the cost of acquisition and helps in increasing profit margins. But, books on customer satisfaction issues, quality of service and customer relationships winners are fed by myths. Here are a few points about these preconceptions and really act on customer loyalty programs.

1) All satisfied customers are loyal!

It is a fact stated after survey that the satisfied customers are not 100% true! To retain customers, meeting is not enough! So you must be good on both accounts, quality of products and communication.

2) In your customer base, you have all the information about customer loyalty programs

Wrong! The really useful information is usually in the head of your business or sales reports that are generally not included in your database.  To run an effective customer loyalty programs, one must first take stock of the data in its customer base.

3) Loyal customers contribute to the growth of your CA through word-of-mouth.

Wrong! In most business areas, clients do not consult them, and word-of-mouth mainly concerns exceptional products that come out of the ordinary.  In addition there is evidence that customers are more likely to speak of a bad experience (negative word-of-mouth) rather than a good experience.

4) Customer Loyalty programs are a barricade for customers

Wrong! The customer loyalty programs that are not designed to re-consume the client is a waste of money. If, after analyzing your loyalty program, it shows that your customers do not consume more, the company has spent money for nothing.

5) Customer loyalty increases market share.

Wrong! The companies with the most loyal customers are the most important in their market. For example Harley Davidson, MAC users are very loyal, but are a minority in their market (niche market). There is no direct correlation between customer loyalty and market share.

6) Building customer loyalty is a one person job.

Wrong! It is not just the customer support or the sales man who is responsible for building and maintaining customer loyalty. It is the job of everyone who works in the company. It is imperative for everyone in the company to work towards achieving a reliable and good quality product which will help in maintaining the trust of the customer towards your company, thereby ensuring customer loyalty.

7) Loyal customers are only loyal to one brand.

Well, that’s not the case entirely.  Let’s have a closer look. Each of us have loyalty cards from more than one store and sometimes also have loyalty cards of competing stores. We buy stuff for our homes from more than one store. Mostly customers are split loyals and alternate between choosing two brands from their evoked set. Hence, using this information to maintain the status in their evoked set is equally important as being the only brand in their evoked set.