Ever walk into a grocery store and see a sticker price for an item, and then notice that it has a discounted rate for a “club member” or “frequent buyer”? This concept is called a Loyalty Program and in today’s market it is a useful tool in gaining return customers, as well as a higher level of customer satisfaction. Once you implement an effective loyalty program, you can expect to see a higher percentage of repeat customers. Best of all, they will be engaged with your offers and therefore more likely to purchase promotional products that pertain to their program.
Exactly what is a loyalty program?
Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying behavior. This behavior is potentially beneficial to the establishment, as it positively reinforces the customer’s engagement, while also giving the customer a tangible value piece. They feel like they are getting a great deal every time they purchase something, which has a “discounted price”.
What other ways can Loyalty Programs aide my business?
Loyalty programs can also give businesses very specific and helpful marketing insight. When signing up for the loyalty program, a customer usually has to agree to the terms of that program. In many cases, this allows the organization to then access the customers’ behavioral purchasing history. Giving very useful insights to a business in regard to what certain demographics often buy, as well as seasonal items and their purchase frequency.
Another common loyalty program: redeemable point systems
Though discounting an immediate purchase encourages customers to engage in point of sale buying, there are other ways to reinforce customer engagement through loyalty programs. One such way, which is also very common, is through a redeemable points system. This has been heavily utilized in the airline industry, with “Frequent Flyer Miles”. It gives the customer added bonuses or rewards for shopping with a specific retailer, while also ensuring that they will have to return in order to redeem those points. This cycle creates consistent customer buying behaviors while engaging them in a returning pattern that will ensure future purchases.
Be sure to promote your loyalty program clearly and effectively
Clip Strip Corp. offers a wide variety of retail merchandising supplies to help promote your marketing messages and special offers. We suggest using a few countertop sign holders to promote the value of your return customer rewards program at the point of purchase. This will ensure all of your purchasing shoppers will be incentivized to return. Having a few promotional products at the POP that pertain to the loyalty program or points system might help encourage enrollment as well. Distributing brochures at the counter or near the exit can also be effective. Our convenient literature holders allow you to clearly display your marketing materials to your customers without getting in their way.
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