Hundreds of the nation’s largest retailers used loyalty programs to encourage customers to return back to their stores. Whether it’s groceries, electronics, sporting equipment, pet goods, apparel or practically any other industry, loyalty programs offer a simple yet effective way for store owners to entice shoppers to return.
There are several different ways to approach a loyalty program with your retail store, but the single most important element necessary is a tracking system. This isn’t an actual store credit cart, but instead it’s a way for store owners to track the purchases of a customer. National retailers like like Kroger, Best Buy and CVS all have similar tracking systems in place. The customer simply fills out a form with their name, phone number, address and other information, and the store will give them a card which contains a unique barcode. Each time the customer makes a purchase, his or her card is scanned to credit them for their purchase.
So, what kind of rewards and incentives should you offer customers with a loyalty program? One of the most common types of rewards given to customers through loyalty programs is in-store credit. If a customer spends X amount of dollars in a given month, quarter or year, the store will reward them with free credit. This type of reward system is a highly effective way to encourage customers to spend more money in your store while driving them back at the same time.
Of course, you don’t have to limit your store’s loyalty program to credit only. Another idea is to offer ‘loyal’ customers exclusive access to new items and products. For instance, you could throw a special VIP event for customers who’ve spent a certain amount of money in your store. During this event, loyal customers can shop through new items and products before they are released to the public. You can even offer free beverages and snacks to your customers while they are shopping.
Loyalty Programs: The Bottom Line
Implementing a loyalty program in your store is a simple way to encourage customers to not only spend more money but to come back as well. Studies have shown that customers are more likely to spend money in a store if they are getting something extra in return, and there’s no better way to accomplish this than by using a loyalty program.