The best way to retain your customers is by having a loyalty program. A loyalty program is a kind of a rewards program that is offered by a company to the customers who make frequent purchases. The loyalty program can reward the customer either by free merchandise, coupons, rewards and even some advance released products which other customers would not get. Customers automatically get more value from businesses that they are loyal to as compared to the one stop shops. A loyalty program should work for both the company and the customer. It should not be biased such that only the customer is benefiting from the program, and it is not profitable to the company.
One good reason why loyalty programs work for small businesses is that they use a loyalty point of sale system. This is POS software awards the customer automatically every time they reach a certain level in the royalty programs. Remember a loyalty program has an absolute limit of purchases that a customer should reach for them to be rewarded. The point of sale system will automatically record the number of times that the customer has visited the business and the purchases done during those visits. Sometimes the customer might have difficulties keeping up with the loyalty program, but the point of sale system makes it easier.
Loyalty programs help increase the business revenue by raising the visit frequency of a customer and the amount they spend per visit. It does this by offering an attractive reward structure and as well as attractive points per visit. For a small business with a good POS system, it’s very easy to term transactions into relationships with their customers. The more you get the customer to come back and spend on your store, the more you get to know them as individuals. This way the small business learns to treat their customers as individuals by knowing their tastes and preferences. This is easier for small businesses because it is not hard to keep up with a group of customers in your surrounding as opposed to the large companies where customers come from different places making it hard to keep up with them.
A small business with good POS software can sell the idea of a loyalty program to customers in a much better way. The POS will keep the record of the customer’s transactions based on each visit. When the customer reaches the rewards level, the small business can even reward the customer using cash. This is because the POS software keeps track of the transactions of the loyalty program per customer. A small business will reward the customer with free merchandise and also cash. A cash reward might seem risky for the business, but it is not if the business has good POS software. This would be harder for big business because of the complexity of their POS. The small business can keep a good loyalty point of sale system that will be profitable to them and also to the customer. The business will be able to retain and even call back some of its inactive customers. This way they increase sales revenue significantly.