- Cost effective: Merchant Warehouse says business owners spend six to seven times more money to acquire new customers than to retain old ones (who also happen to spend more).
- Repeat customers: Offering points can increase repeat shoppers annual visits by up to 20 percent.
Now decide what system works best. Popular options include:
- Point-based: Set the amount of points customers earn based on how much they spend. Once they hit a targeted amount, reward them with discounts or freebies.
- Rewards for paying upfront: Small business owners can offer regular customers an incentive to pay ahead (which also helps with cash flow management.)
Lastly, invest in automating your loyalty program — it provides additional opportunities to make changes and offers on the fly, helps maintain clean tracking and encourages more meaningful communications based on purchasing history.