Home Business Insights & Advice Does my small business need a loyalty program?

Does my small business need a loyalty program?

by John Saunders
11th Jul 22 2:42 pm

Many new small businesses emerged during and after the pandemic. Indeed, the first quarter of 2022 saw the total register increase by 56,448 companies – a 1.2 per cent increase. This can partially be explained by furlough giving people the spare time to start a business and the pandemic allowing many people to switch careers. If you’ve started a small business, though, you’ll understand the need to attract and retain customers. One option to stimulate this is through a loyalty program. But does your small business need one?

Standing out from the crowd

If your business needs help standing out from the crowd, a loyalty program could be an excellent option for you. Whatever industry you’re in – be it art, jewellery or fashion – it’s important that your brand feels unique and looks interesting. This can be achieved via a quality social media strategy and by working with influencers. But a loyalty program can be effective too. If your loyalty program feels unique and genuinely rewards customers, it can add to your brand personality. This will keep customers returning long after their first purchase.

What is a loyalty program, and do I really need one?

A loyalty program is a system where you reward customers with discounts or perks once they’ve made a certain number of purchases, or if they’ve spent over a certain amount on your products. You might need one if you’re struggling to retain customers. After all, there are plenty of benefits to loyalty programs. They encourage customer loyalty by giving them real value for their purchases. This can, in the long run, boost your profit and help your business grow. What’s more, if you run an online loyalty program, you’ll be able to track your customers’ buying habits to deliver a more personalised e-commerce experience.

What type of loyalty program should I have?

If you’ve decided you need a loyalty program, you just need to decide what type to go for. There’s a points-based program where purchases are turned into points: the more a customer accumulates the more benefits they get access to. Meanwhile, there are tiered systems where you unlock new levels of benefits as you accrue more points – SkinnyDip are one example of a company that utilises this. Meanwhile, there are rarer systems that can be effective in the right situation: value-based programs, omnichannel programs and paid programs are all worth exploring too.

If you’re running a small business, you’ll know the importance of attracting and retaining customers. And by exploring the guide above, you should be set to implement your own loyalty program to achieve this.

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