Kick-start Your Customer Rewards Program Just in Time for the Holidays
Give and ye shall receive –– isn’t that what the holiday season is all about?
Loyalty programs can be an effective marketing tool for businesses looking to reward their most beloved customers. According to Inc.*, repeat customers tend to spend much more than new customers. For this reason and more, SMBs should consider developing a loyalty program pronto. The holiday shopping season is fast approaching.
Of course, the first step to a loyalty program is designing the program itself; next is designing a colorful customer rewards card. Together, they round out a holiday marketing campaign like no other, so long as businesses take the proper steps to get loyalty programs off the ground and rewards cards in the hands of customers.
1. Lay the groundwork for your rewards
Every loyalty program tracks certain customer benchmarks. Once customers reach said benchmark, they receive a reward. Businesses initiating a loyalty program from scratch ought to consider these options, as well as the helpful reminders for each:
- Buy X, get X free: Mathematically speaking, these rewards work similarly to percent discounts. For example, “buy one, get one free” is practically the same as a 50-percent discount for the total purchase. The only difference is the reward is triggered by the sale of one item at full price as opposed to discounting per unit prior to sale. Not everything can have “BOGO” status –– the reward-to-profit ratio might not tilt in your favor. “Buy two…” or “buy three…” options still offer sizeable rewards to customers while keeping programs fiscally responsible.
- Receive X percent discount on a purchase of X or more: Again, crunch the numbers. A reward should be substantial enough to entice customers to shop but curtailed enough to still work to the advantage of the business, be it through revenue, inventory shedding or otherwise. To encourage more frequent spending, discount coupons for large purchases should apply to a later purchase as opposed to the one that earned the discount.
Rewards should be also proactive, not merely “transactive,” especially for those customers who’ve already given so much. Loyalty programs should acquire key customer data that will help your biggest fans stay abreast of your company’s comings and goings. By asking for an email address or phone number at signup, companies can send out email blasts and text messages to alert customers about promotions, new products or special things only the privileged few get to experience.
2. Stand out with a professional graphic design
How many times have you gotten a free sandwich or service thanks to the classic buy-nine-get-the-tenth-free customer rewards punch card?
Print products like these have proven to be a cost-effective draw to businesses in the past, perhaps to a fault. During the holiday shopping season, consumers will no doubt accumulate many in their travels. How can your business ensure your rewards cards don’t fall to the bottoms of purses or get lost in wallets?
Start by partnering with a print services provider that uses the latest printing technology and provides same-day service. Colors will always be crisp, and a fresh stock of cards will be ready right when you need them.
3. Think creatively about card styles
Not all rewards cards are of the punchy or stampy variety. Many businesses prefer their rewards cards laminated and capable of syncing up with their data management systems for better customer service. Magnetic stripes, bar codes or even regular account numbers on each card help businesses track expenditures as a means to deliver valuable rewards without breaking the bank with freebies. Plus, plastic or laminated cards resist wear and tear longer.
While SMBs decide if more advanced loyalty programs are right for them, they should also decide if the standard card will do. Other shapes, like key ring tags, may prove more effective for encouraging customer use. After all, why share purse or wallet space with everyone else’s rewards cards when you can enjoy prime keychain real estate?
Get moving!
Start on your loyalty program today and make the most out of this upcoming holiday shopping season.
*http://www.inc.com/guides/2010/08/get-more-sales-from-existing-customers.html