9 Reasons Your Business Should Start a Rewards Program

Small Business Interior
August 15, 2020
74 / 100

Businesses with a rewards program are much better at keeping their customers engaged in their new products or services. A weekly email often accompanies the program and keeps your business at the front of their mind. 

A rewards system may seem like an overwhelming task, but it can be tailored to fit your individual needs and adapt as they change. If your business is struggling for repeat customers or you just want to expand your business, you should consider a recognition program.

Getting people into the store or on your website is only half the battle. Turning those browsers into buyers is the ultimate goal. If customers are required to make a minimum purchase or come back at a later date for a coupon, you are more likely to get their business more than once as long as they have a positive experience.

Here are nine reasons your business should start a rewards program:

1. Customer Loyalty

Creating a rewards program will bring back the same customers over and over and help keep your sales steady. Customers are also more likely to return to your store if they get an added benefit for doing so. Punch or stamp cards are the simplest way to drive the same customers back to your business.

Customers are willing to return to your business if they have a positive experience with your rewards program. The smallest discount or coupon makes a significant difference in how they will view your company. 

2. Build Repeat Customers

Earning coupons that must be used at a later date will drive more customers to your website or to the storefront to browse. Getting a customer in the store is often the most challenging part of marketing, and loyalty programs help bring traffic to your business. 

Repeat customers are often what holds a business together, especially in the beginning stages. By giving people an incentive to be that repeat customer, you and your business are helped. 

3. Encourage More Sales

While only a small number of people are loyal to a single store, for a small business, this can be the majority of their sales. If people shop at the same store continuously, they expect their rewards to grow with the amount of money they spend. Whether it’s a significant growth or not, the increase in reward value creates more reasons for loyalty. 

A simple points rewards program will encourage customers to spend more money to reach the next reward level. Whether that is an extra 5% off their next purchase, or a $10 coupon to use on their next visit, the sales will go up. 

4. Better Customer Relationships9 Reasons Your Business Should Start a Rewards Program 1

Especially in the physical store, a repeat customer expects the same level of high-quality service they received the first time they went to that location. For small stores, employees can get to know their customers and connect with them on a personal level. 

By first building your repeat customer base, you can spend more time acquiring new customers. It is much easier and cheaper to gain more customers from good reviews and positive customer experience than to recruit customers unfamiliar with your company or products. 

5. Benefits Outweigh the Costs

Creating a rewards program from scratch may seem daunting, but your program does not have to be elaborate, and once it is in place, it becomes less work to maintain. Introducing a rewards program to an already established business may be difficult, but it is worth it. 

The longer your rewards program is in operation, the more return on investment you will see. 

6. Market Research

By having your customers enter a personalized code or their email address, you gain insight into their spending habits. As you release new aspects of the program, you can evaluate the most beneficial choices to your unique business.

Some marketing techniques will work better with individual businesses than others, but with the market research you acquire, you can alter it to fit your needs. Be careful with marketing emails to customers who have already signed up, because an overabundance of marketing can turn away some customers. 

7. Online and In-Person Options9 Reasons Your Business Should Start a Rewards Program 2

Some businesses choose to separate their online store from their brick and mortar locations. Often, the deal in-store will be slightly better than the online version or offer something completely different. Customers in person are more likely to purchase more than one item or browse around the store, wondering if they need or want anything else. 

Exclusive rewards for members of your loyalty program will help your business grow and expand. 

8. Customers are Happier

Customers are happy if they believe they got the better deal on an item that was on sale or had a coupon. The exclusivity of the deal or the apparent extreme discount, will keep customers happy and returning to your business.

Happier customers are also more likely to tell their friends and family about a fantastic deal they got because of your rewards program. 

9. Can Grow Your Business

Overall a rewards program is beneficial to both the business and the customer. Your business receives more traffic and more word-of-mouth advertising. The customer gets the item or service they wanted at a discount.

Acquiring new customers can be expensive and requires patience and quite a few marketing strategies. Rewards programs are simple solutions that will help your business grow for minimal costs.

Conclusion:

A simple rewards program is often easily implemented and can cost very little to start. More complicated systems have benefits as well but will take more effort at the start. Look at examples of large business loyalty programs and decide what you like and don’t like about multiple systems. By doing this, you can be proud of the program you create. 

For small businesses, it is recommended that you begin with a simple program, such as a stamp card or discount coupon, and advance to a more elaborate system as your research and customer base expands. 

An overly complicated program will only turn customers away and potentially drive them to other stores. Do what is right for your business for where it is now and allow it to grow and evolve. 

https://www.cardsource.com/news/6-reasons-why-your-business-needs-a-loyalty-program
https://marketingland.com/8-reasons-loyalty-programs-imperative-marketers-109077

References:

Categories

More Posts:

5 Tips for Recruiting Younger Real Estate Agent Candidates

To ensure your agency’s survival, you may need to renew your focus on recruiting professionals that belong to the millennial and Gen Z demographic. To guide you in this task, here are a few helpful tips you may want to follow:

Ideas for Setting Up a Non-Profit Organization

Have you always had the desire to make a bigger impact on others, particularly on underrepresented and underserved communities? One great way to do this is to set up a successful non-profit organization.  Here are a few ideas for setting up a non-profit organization. ...

Why Your Business Should Offer HSA-Compatible Health Plans

As a business owner, you have a lot of responsibilities when it comes to taking care of your employees. If you offer good benefits, such as healthcare, you’ll be more likely to hire and maintain the best employees.  Here are a few reasons why your business should...

When it’s Time to Hire an HR Professional for Your Company

As your business continues to expand, it might be a wise decision to employ an HR specialist who can help you manage and optimize your workforce. An HR expert brings with them essential services that will streamline the operations of your company while keeping your...

Why Your Office Needs High-Quality Chairs

For any business or organization, the right office furniture is vital. Quality chairs are essential and can help bolster productivity, decrease employee health issues, and remain operable longer than budget substitutes. Investing in quality office chairs provides...

How to Make Sure Your Business Event is a Positive Experience

There are few better ways to make connections while having a good time than by hosting an event for your business. Of course, the networking and trust-building benefits of such an event hinge on planning it well. When organizing a business event, it is imperative to...

Why Your Business Should Be Involved With the Local Community

Why your business should be involved with the local community

The local community is the primary customer base for most businesses unless they operate solely online. Therefore, businesses should get involved with their local community in order to forge a strong presence & distinguish themselves from their competitors. You can achieve this in several ways, primarily by sponsoring local events, such as sports competitions, charities, etc. By connecting with your local community, you can raise brand awareness, gain genuine feedback & insights about your products as well as understand your customers better. Consequently, you can address their pain points, create better products, align your values with your customers’ and thus, strengthen your relationship. Furthermore, by supporting local events, you can attract top talent and show your dedication by hiring locals, creating jobs, and giving back to the community. Naturally, you can create a positive image for your business leading to boosts in sales & revenue.

What to Do When You Plan to Take Your Company Public

Going public is a huge milestone for any company, and it requires a great deal of planning and preparation. Taking your company public can have numerous benefits such as increased liquidity, brand visibility, and access to more capital. From reviewing your finances to...

Manufacturing Tips Businesses Should Follow

To be a victorious business, it takes more than having an outstanding product. Knowing the significance of manufacturing and how it impacts their financials is integral for any organization that wishes to thrive in today's marketplace. To keep up with the competition,...

Technologies Your Business Needs for Future Growth

Companies that are serious about advancing and expanding their operations must prioritize investing in technology such as Cloud Computing, Artificial Intelligence (AI), and Customer Relationship Management (CRM) software. These essential technologies can give...
Ideas for Setting Up a Non-Profit Organization

Ideas for Setting Up a Non-Profit Organization

Have you always had the desire to make a bigger impact on others, particularly on underrepresented and underserved communities? One great way to do this is to set up a successful non-profit organization.  Here are a few ideas for setting up a non-profit organization. ...

Why Your Office Needs High-Quality Chairs

Why Your Office Needs High-Quality Chairs

For any business or organization, the right office furniture is vital. Quality chairs are essential and can help bolster productivity, decrease employee health issues, and remain operable longer than budget substitutes. Investing in quality office chairs provides...

Why Your Business Should Be Involved With the Local Community

Why Your Business Should Be Involved With the Local Community

Why your business should be involved with the local community

The local community is the primary customer base for most businesses unless they operate solely online. Therefore, businesses should get involved with their local community in order to forge a strong presence & distinguish themselves from their competitors. You can achieve this in several ways, primarily by sponsoring local events, such as sports competitions, charities, etc. By connecting with your local community, you can raise brand awareness, gain genuine feedback & insights about your products as well as understand your customers better. Consequently, you can address their pain points, create better products, align your values with your customers’ and thus, strengthen your relationship. Furthermore, by supporting local events, you can attract top talent and show your dedication by hiring locals, creating jobs, and giving back to the community. Naturally, you can create a positive image for your business leading to boosts in sales & revenue.

Manufacturing Tips Businesses Should Follow

Manufacturing Tips Businesses Should Follow

To be a victorious business, it takes more than having an outstanding product. Knowing the significance of manufacturing and how it impacts their financials is integral for any organization that wishes to thrive in today's marketplace. To keep up with the competition,...

All Categories

Business Operations

Entrepreneur Interviews

Marketing, Networking, & Social Media

Self Care & Personal Development

Working Moms

Business Software and Technology

Entrepreneurship & Small Business

Organizing Tips

Sales

Career Building

Family Businesses

Inspiration

Starting Your Own Business

Work-Life Balance

Communication

Hiring Help

Management & Leadership

Time Management & Priorities

Women in Leadership

Recent Posts

Overdue Financial Moves You Need to Make Now

Overdue Financial Moves You Need to Make Now

If you've been procrastinating on tackling some essential financial actions, now is the time to take action. Today's article will emphasize three crucial financial moves that are long overdue: jumpstarting your retirement investing plan, formulating an estate plan,...

Ideas for Setting Up a Non-Profit Organization

Ideas for Setting Up a Non-Profit Organization

Have you always had the desire to make a bigger impact on others, particularly on underrepresented and underserved communities? One great way to do this is to set up a successful non-profit organization.  Here are a few ideas for setting up a non-profit organization. ...

Why Your Business Should Offer HSA-Compatible Health Plans

Why Your Business Should Offer HSA-Compatible Health Plans

As a business owner, you have a lot of responsibilities when it comes to taking care of your employees. If you offer good benefits, such as healthcare, you’ll be more likely to hire and maintain the best employees.  Here are a few reasons why your business should...

When it’s Time to Hire an HR Professional for Your Company

When it’s Time to Hire an HR Professional for Your Company

As your business continues to expand, it might be a wise decision to employ an HR specialist who can help you manage and optimize your workforce. An HR expert brings with them essential services that will streamline the operations of your company while keeping your...

Why Your Office Needs High-Quality Chairs

Why Your Office Needs High-Quality Chairs

For any business or organization, the right office furniture is vital. Quality chairs are essential and can help bolster productivity, decrease employee health issues, and remain operable longer than budget substitutes. Investing in quality office chairs provides...

How to Quickly Capture Attention on Social Media

How to Quickly Capture Attention on Social Media

Social media is invaluable for marketers and business owners, especially those working with small businesses. It’s a great way to get the company in front of more people, allowing you to attract more customers. Of course, it’s not enough to just get seen on social...