

The long-term success of your retail store or restaurant depends on repeat customers. One of the best ways to encourage customer loyalty is with a loyalty program.
Loyalty programs have come a long way from paper punch cards. Today’s digital loyalty programs incorporate customer relationship management and marketing functions as well. Belly, Loyalzoo, Perka, and Spendgo are a few of many programs tailored to small, independent businesses.
Factors to consider include:
Also, check out the types of loyalty programs your competitors have in place. How well do they work? How can your loyalty program help differentiate your business from the competition?
Common rewards structures include:
Rewards can include discounts, free gifts, perks, or access to special events. Vary your rewards on a regular basis to keep customers interested. For example, a retailer could hold "Two-fer Tuesdays" and offer double the points for every purchase on Tuesdays. A restaurant could offer bigger discounts for loyalty program members during slow times of the day to bring in business.
Once you've chosen your loyalty program and decided on your rewards system, let customers know about it. Market your loyalty program on your website, with signage in your store or restaurant, via email, and on social media.
Your employees are a key element in spreading the word. Train them to (quickly) explain the benefits of the loyalty program during each transaction and ask customers if they want to join. Restaurant owners can put loyalty program sign-up cards on tables or include them with the check. Retailers can put cards at the checkout counter and in shopping bags.
Use your loyalty program members to spread the word about your business, too. Offer them rewards for liking or sharing your social media posts, or an incentive for every friend or family member they get to join the loyalty program.
Don't just "set and forget" your loyalty program. Track the results to make sure it's working. Digital loyalty program software provides a wealth of information to show which offers work best. You should also measure these metrics:
Finally, monitor the profit margins of sales generated by your loyalty program. If your loyalty program isn’t cost-effective, revise your rewards so they boost your business’s bank account rather than depleting it.
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