How many loyalty cards and apps do you currently hold? The major supermarkets and retailers all have schemes set up to reward returning customers. The reason for this is because they work. If you offer something to customers, they will come back. Yet rewards are not something that can only be given out by large companies. Below, we discuss setting up a reward system for your small Droitwich business.
Why Do Rewards Work?
Rewards work in several different ways and provide several advantages. Firstly, once customers feel valued they will be loyal. In a competitive marketplace, retaining customers is as vital as bringing in new ones. This will drive repeat purchases, as customers choose you over other local, national, and global businesses.
The best form of marketing is word of mouth, but it can’t be bought or hired from an agency. A loyalty scheme is the next best thing. The people using your products will recommend them to friends and family, be it your coffee shop or joinery business. This will build a community around your business, which will snowball and result in leads and conversions. In a small town like Droitwich where news travels fast, this should work very quickly.
Finally, loyal customers are a great source of market research. They are your core demographic and won’t be afraid to tell you what they think. This can be used to get valuable insights into what products and services you should be providing, or how you can improve current ones.
What Rewards Can You Provide?
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Whole industries have managed to experience huge growth by using reward methods. One case study is the iGaming sector, where playing online casino games has become a billion-dollar industry. With so much competition, providers of online slots have offered rewards and bonuses in the vein of match deposits and free spins. This has brought people not just to providers, but into the industry as a whole.
The key here is that the industry provided something of value. People playing casino games want to play without using their funds, especially if they have a chance of winning. The principle remains the same. Give your customers something they want.
Very often, this means operating at the most basic level. If you have a coffee shop, then reward people with free coffee. If you sell clothing, then provide people with free accessories. For people who sell items with bigger shelf prices, you can offer discounts on existing products.
How to Provide Rewards
Some companies online will set up reward systems for you. They can involve swipeable cards and even apps. Yet as a small business owner, this is probably too much expenditure. Instead, keep it simple. Give out discount coupons, or let people have a card stamped every time they make a purchase. None of this should cost the earth to set up and is an incentive for them to return.
Once all these are in place, don’t forget the biggest draw that will keep customers coming back. You. As a local Droitwich business, you have an advantage over faceless corporations by being a real person. Get to know your customers, and let them know you are by adding a reward system, you will soon build a regular base of people who keep coming back.
