How do you reach out to existing customers who already like your product or service? You offer them perks and incentives to encourage repeated purchases. Instead of trying to acquire new customers, making existing customers more loyal can be rewarding. Small-business owners can especially reap the benefits of loyalty marketing because keeping your current customers happy is less expensive than finding new ones. While helping your business achieve its growth targets, small businesses can keep existing customers through creative loyalty schemes. There are many types of loyalty programs you can use in your small business.
Over the last ten years, loyalty programs have proven themselves to be an effective way to drive customer retention. How do you intend to reward the customers who have stayed loyal to your small business? Here are 10 innovative loyalty marketing ideas that you should consider experimenting with.
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10 Loyalty Marketing Ideas for Your Small Business
1. Stamp or Punch Card
The most common way of doing this is a stamp card. Your card will be stamped each time you buy a product or service and after a certain number of times, you will get a free or discounted produced on the house for being a loyal customer who purchases frequently.
This can also be a punch card. Businesses in the food and beverage industry have been making use of stamp or punch cards for decades now. Customers love freebies. The more freebies they receive, the more frequently they purchase. However, some small businesses are resistant to freebies, especially if they are service (instead of a product) providers.
Service providers would rather offer small additional services than offer a completely free service, such as a complimentary blow dry with a shampoo. It can help customers to trial service offerings they usually would not go for.
2. Develop a Loyalty App
Honestly, reward cards just are not innovative enough anymore, especially if you want to stand out! There are so many small businesses offering reward cards these days that have to be stamped or punched, it is hard for customers to keep track of them. In the end, they end up not using any! Instead, create a web or mobile app that has a points-based rewards program.
3. Gifts and Giveaways
Most existing customers have a favorite product and service from your varied offerings and they will likely keep purchasing that only unless given the incentive to try something else. One way to help them discover your other products or services is to offer limited-time giveaways of products or services that are not getting as much attention as they deserve. If you have a new product, give it away as a free gift for the first few weeks in order to promote it.
4. Exciting Offers or Upgrades
In order to encourage the purchase of a product, boost its value through buy-one-get-one (BOGO) offers. In order to encourage the purchase of a service, boost its value through free upgrades. The idea is to offer a free gift or upgrade with a certain minimum purchase instead of simply giving it away. It makes your customers feel like they earned it. It also makes them feel more appreciated.
5. VIP Club
In order to create a sense of exclusivity, creating a VIP club is your best bet. If you want to offer limited edition luxury goods along with your usual product or service offerings, this is a great loyalty scheme.
6. Customer Surveys for Incentives
An easy way to find out how satisfied your customers are with your business is a customer survey. You could do it manually or digitally. Ask for feedback; offer a simple reward such as an entry in a giveaway.
Another excellent tool for engaging existing customers and keeping them motivated to purchase is gamification. Introduce elements of game playing into other loyalty schemes. This could be simple as a raffle draw. Rewards could be offered for location-based online check-in and social sharing.
8. Environment-Oriented Loyalty Program
Companies can make a loyalty scheme part of their corporate social responsibility initiatives by establishing partnerships with organizations that were created to protect the environment. It could be as simple as planting a tree, cleaning a neighborhood or recycling plastic bottles.
9. Trade-in Old Products for New Ones
If you sell jewelry made of precious metals, you can make it easy for customers to trade in one piece for another, since it easy to melt down and create new jewelry.
10. Loyalty Scavenger Hunt
Nothing is more thrilling than an action-packed adventure that lets you socialize and engage in fun activities. A scavenger hunt can execute in many different ways. This would be a millennial-focused loyalty scheme. Launch a full customer loyalty platform by throwing an epic treasure hunt that will be a memorable and rewarding experience.
There could be small prizes scattered throughout the scavenger hunt and a grand prize for the winner. This is on the more expensive end of loyalty program ideas that can be orchestrated by small businesses that are doing spectacularly well.
In conclusion, if you want to inspire customer loyalty, the loyalty programs listed above have proven themselves to be some of the most effective tactics. You should definitely invest in a loyalty scheme if you are in small business since it will cost you a lot less to sell to your existing customers instead of acquiring new ones. There are a lot of loyalty programs out there, in order to stand out and shake things up, you must have a truly innovative idea.