Why You Shouldn’t Ignore Loyalty Points for Small Business?
Nowadays, loyalty programs are among the main foundations of any marketing strategy. They come in many shapes and sizes but essentially, they have all the same objective: retaining customers.
So what are loyalty points?
Loyalty programs are marketing strategies designed to encourage customers to engage with a brand, to continue shopping/using the services of the brand.
Most loyalty programs use some kind of rewards system in order to achieve this objective. Some of these programs may use different methods, like coupons, loyalty cards or loyalty points as an incentive for repeat purchases through redeeming these loyalty points or coupons.
How do loyalty points for small businesses work?
Actually, it’s very easy to understand. In this method, frequent buyers earn points, according to a scale set by the business, and at some point in the future, these points translate into some kind of reward. The business determines in advance how many points entitle a customer to a certain type of reward, whether it is a discount, a free gift, a special treat, etc.
It is also possible to grade customers according to their membership tier, such as “Silver”, “Gold”, and “Platinum” member, depending on their purchase amounts, and to offer more rewards, respectively.
In practice, some businesses may “stutter” in the implementation of loyalty points programs by making the path for redeeming the points too confusing. Using the program should be an intuitive undertaking; giving customers a headache instead of a reward is a sure way of pushing them away.
Therein lies the advantage of bobile, which promotes an easy and intuitive way to convert one-off clients into long-term relationships by implementing a program of loyalty points within the Members Club for small businesses.