Welcome Loyal listeners in today’s episode of the loyalty minute we’re going to be talking about how to create a customer loyalty program for your business…
It’s one of the most cited statistics in the business playbook: 80% of your venture’s profit will come from 20% of your existing customers.
Loyal customers are your most valuable customers, which is why many small business owners go above and beyond to incentivize their customers to return time after time.
A loyalty program can improve customer retention, bring in more positive customer reviews and build the kind of brand loyalty that can help you sustain the business through a recession. Here’s how to set up and run an effective customer loyalty program.
Design your program around a goal
What’s the customer behavior you wish to incentivize? Design your loyalty program to reward your customers for taking a specific action. For instance, if they visit your cafe for a coffee four times in a month, the fifth coffee is free. This encourages more frequent visits, bringing in foot traffic and increasing sales.
Here are the main goals your loyalty program might help you accomplish:
Increased spend: make each transaction more profitable.
Frequent visits: encourage customers to make a purchase more often.
Market research: use your loyalty program to learn purchasing habits, solicit feedback and test new products.
To learn more about creating a loyalty program for your business and other great customer loyalty insights, please visit theloyaltyminute.com Enjoy!