Retailers are now more competitive than ever. As such, consumers are showered with more choices, new opportunities, incentives and offers – all of which are enticing them to make the move to another brand or to another store. Thus in this complex environment, it is the job of the retailer to determine who their best customers are and create reasons to keep them coming back.
Repeat business is the lifeblood of retailers of all shapes and sizes. Successful businesses are increasingly turning to customer loyalty programs to deliver targeted rewards and incentives that increase store traffic. These programs not only will attract new customers, but also turn your existing customer base into “ideal customers” who have the purchasing habits that will drive topline growth for your retail store.
By far, the most effective way to design and manage these programs is to use a retail point of sale (POS) system that comes bundled with a customer loyalty module. This provides an effective way to seamlessly integrate loyalty tracking and rewards at the point of sale. More importantly, the POS system should provide reports that help a retailer design an effective and targeted program.
Two of the most widely-used programs are Membership and Rewards programs.
Membership Programs:
Membership programs are one of the best ways to cultivate customer loyalty. These programs provide member-only incentives.
Rewards Program:
Reward programs are based on earning points. These points can be used towards future purchases.
Another key component to these programs is flexible rewards, such as instant discounts, gift card credit and vouchers. Customer rewards programs come in a variety of packages. The trick is to create one that is tailored to fit your business.
In addition to managing loyalty programs, there are endless marketing tactics that can leverage customer data to create loyalty and increase sales. Have you ever been asked for your phone number before making a purchase? Chances are the retailer is leveraging this information to track your purchases. With an integrated customer loyalty module, your POS software retains customer information such as purchase history. From purchase history, you are able to view customers’ preferences, sizes, shopping patterns, etc. What you do with this information is what will set you apart from other businesses.
Another powerful tool in customer retention is keeping up with important dates. Easily send mailers to your customers’ friends and family notifying them of their loved one’s birthday, or even remind them of an upcoming anniversary. Not only can you send them a reminder, but you can make sure they buy the perfect gift. Your reports can show the customer’s size, preferences and even their wish list. Don’t give your customers the chance to pick up a last-minute gift at another store; keep driving traffic to your business.
What are you doing to increase customer loyalty?
Great Post Erica! I really respond well to retailers who not only have loyalty and reward programs but follow thru on their campaigns. I like to feel as if my business is valued and appreciated. So I agree with you 100% that it is key for a retailer to find a mix of marketing programs that are tailored to thier business and clientele.
Great suggestion too, Angela about email marketing – it is not always practical or convienient to call your client list – email is a very powerful tool for sending promotions, wish list items, or suggestions to add to a clients collection.
Another great tool not to be forgotten is email marketing. Loyalty programs and email marketing go hand-in-hand to promote new traffic and to establish an ongoing one-to-one relationship between your store(s) and your customers. You can notify certain customers that have a preference for a certain item that you just got a new shipment in and they should come in and check out the new styles or send an email about your 4th of July sale that is going on! It is a very cost effective way to communicate with your customers.