Why Small Businesses Should Be Utilizing Customer- Loyalty Programs. The philosophy behind a customer loyalty program is simple: Repeat customers are rewarded and businesses increase sales. It’s a basic but powerful strategy. For instance, My Starbucks Rewards, the coffee giant's customer- retention program, significantly contributes to the company’s record growth. To keep up with major online retailers like Amazon. Bay, Best Buy increased reward points from 4 percent to 5 percent last year to motivate customers to keep coming back. This strategy along with additional changes has helped the company’s stock more than doubled since early last year. Whether the goal is to continually increase sales or to jumpstart sluggish revenue, customer- loyalty programs appear to have become a staple for many large corporations. But what about small businesses? It’s important for business owners to keep in mind that customer loyalty isn’t just for big businesses – a well- designed program can help any size business scale and reach new heights. Having a customer- loyalty program could help you increase repeat customers, which, in turn could boost your business’s revenue. Based on the same report by Manta and BIA/Kelsey, a repeat customer spends 6. And they should be rewarded for this action, as retaining customers is less costly than acquiring new ones. By providing loyalty programs for current customers, small- business owners are not only saying thank you but are also motivating them to continue to be their brand ambassadors. They can easily spread the word about a business to their professional, personal and social networks, helping small- business owners increase their customer base even more. Rise above the competition. It can be difficult for a small business to compete with a large brand considering that most large brands have more locations, resources, marketing dollars and the ability to offer lower prices. However, a good customer- loyalty program is an easy way for small businesses to show their personal side and remain competitive in spaces dominated by big business. For example, many consumers may not love the coffee at a big- brand coffee chain but do love the fact they can earn points through their purchases and save money in the long run. Customer- loyalty programs don’t have to drain small businesses’ budget. While some corporations spill millions of dollars into loyalty programs, small businesses don’t have to follow the same tactic to achieve promising results. International Journal of Contemporary. Loyalty Program Insights Study. Maritz’ Loyalty Experts poured through all of the available research results. Value drivers/program perks/benefits. A loyalty program is a rewards. They created a comprehensive benefits table so customers. According to a 2015 report from Consumer Intelligence Research. Positive outcomes of loyalty. Should you start a customer loyalty program for. Yet research results from Invesp. Loyalty Program Benefits Research Results And FindingsIn today’s mobile era, cost- effective digital rewards programs are just as fruitful as the ones put in place by bigger players. Belly, a digital- rewards mobile app, enables small businesses’ customers to earn points on their purchases by simply using their smartphones. Similar services include Punch. Tab and Perkville, and subscription price starts at as low as $5. The Effect of Loyalty Program Fees on. Open Access to this research benefits you. Loyalty Program / Rewards Stats / Loyalty Program. Loyalty Program / Rewards Stats / Loyalty. Maritz Insights: the loyalty report. Research results were taken from a survey. Loyalty program influence and. Program Benefits, Satisfaction and Loyalty in Retail. The results exemplify that program benefits are a strong driver of. These loyalty program benefits form the basis for. Small- business owners no longer have to waste time and money printing cards and buying ink when they are using digital customer loyalty programs. More importantly, they’re making it easier for their customers to keep using their service. Here’s to the end of losing paper punch cards in a pile! Customer- retention programs are not just for big brand name players. They can provide many benefits for small businesses, such as increasing sales, helping them stand out and developing a stronger relationship with their customers - - and technology is making it easier and cheaper than ever before to launch one.
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