If you own a store, you probably already know one of your biggest challenges: how to keep customers coming back.
Well, good news! We have a solution to the problem…
Implement a customer loyalty program.
Studies show that only 3% of C-Store customers will return to the same store. Having a loyalty program comes with many benefits for your business. Maybe you’ve considered one before but decided it wasn’t worth it, or maybe you think it’ll just be a hassle. Whatever the case, we want to tell you why a loyalty program is good for your business.
Having a loyalty program will help you keep your existing customers coming back. It’s estimated that loyal customers spend approximately 67% more than other customers. Moreover, a 5% increase in customer retention can increase your profits by 85%. This is a big deal, especially considering customer retention is the most affordable way to increase profit margin.
Set your store apart from the competition.
A loyalty program gives you a way to differentiate your store with something other than price. Your customer’s experience can be enhanced by an emotional connection.
Let’s face it, if consumers today can look online and compare prices, they’re probably going to find cheaper alternatives than what’s on the shelf. However, a loyalty program gives customers a reason to buy it from your store instead.
Whenever you reward your customers through a loyalty program, it builds an emotional connection. They will want to come back and shop at your store. It gives them a sense of loyalty to your business.
Show customers that you value them.
You can also build an emotional connection with customers by showing them that they’re valuable to you. This can be achieved by building real relationships with your customers. In order to build a relationships with your customers, you’ll need data.
Loyalty cards can give you valuable data and information about your customers. You can look at things like dollars spent, visit frequency, and purchase history. You can use this data to provide a high quality level of service, like suggesting new products that you already know they will enjoy.
Build brand advocates.
By implementing a loyalty program, you create advocates for your business. Your best customers aren’t always the ones that spend the most money. Customers that spread good word about your business and recommend you to other people are highly valuable.
20–50% of all purchasing decisions are based on what people have heard. If you give your existing customers a high quality, unique shopping experience, they are more likely to recommend your store to their friends and family.