A customer loyalty program is a marketing approach that enables any business with recurring customers. The program aims to reward customers upon their recurring purchases at a single store. This helps the customers generate special discounts in the form of loyalty points, which they can leverage against the payment of any repair service or a special part.
What are Loyalty Cards for Customers?
Launching loyalty cards for customers allows them to feel a sense of recognition and appreciation. You can reward them for purchasing services or parts from your shop on a recurring basis. The best industry-practices of loyalty cards include several approaches. Some businesses can start a loyalty program upon predetermined transactions. In this case, the loyalty points awarded to a customer, for doing recurring business with your shop, differ per each order for service and parts. All these can be defined by you (business owner), beforehand, using a cell phone repair shop POS software.
How to Customize a Loyalty Program?
You can easily configure the POS system to allocate the number of reward points per transaction. The system automatically calculates any previously allocated points to a customer, and the points for every transaction they perform are added into the total. Such incentives and benefits encourage the customers to walk into your store again and again. With their total points increasing, the consumer feels more empowered at your store.
You can also release special benefits for a set of customers, doing business with your store, beyond a particular threshold, which can include free merchandise, discount coupons, or early access to new products. There isn’t a business that will happily give out free extra, however, the loyalty program is a strategy that does not incur huge costs. Studies by psychologists like Norbert Schwarz reveal that members of customer loyalty programs typically spend up to 18% more than other customers.
The reason for this is that when your store throws in something extra with a purchase of any service, it acts as a catalyst for your customer to reach out to the shop again. This is an excellent approach to reinforce the buying habits and decisions of your customer for your shop.
Loyalty Program & ROIs
Everyone loves getting anything for nothing at all. Therefore, every cent that your business invests into the loyalty program, chances are that it’ll most likely provide a much higher return in the future. This is an equally important step to retain and ensure that your existing customer base stays intact. A basic rule of thumb when running your own repair business: Make it easier for your customers to trust your shop, business and your system. This is a most important factor in generating a good customer base and the capability to retain it. Research reveals that 91% of customers become frequent buyers when they start trusting a company.
Benefits of Loyalty Programs
Loyalty programs have proved to be an effective hook in capturing new customers, and retaining old ones. Following pointers shed light on the most impactful benefits to launching a loyalty program:
In today’s world, competition runs rife. Therefore, having a competitive edge in prices alone is not enough to attract the majority of consumers. Customers are taking into account other factors when making purchase decisions. These include shared values, engagement, and the overall experience of your business.
Word of mouth can work wonders if you know how to set it up. Whenever your customer experiences the benefits of your loyalty program, they’re going to share the enjoyment by telling their friends and family about it. This will allow you to increase additional footfall in your store and increase your revenue. Readmore: Apple iMac pro i7 4k
Benefit-Cost Ratio (BCR)
Do you know how much it costs in marketing to get new customers? If you do, you’d already understand what follows ahead. But if you don’t, let’s just say that it is much cheaper to retain your customers than going after new ones. As a matter of fact, it is more cost-effective for you to ensure that your business can retain the ‘happy customers’. This will generate a stable recurring revenue, upon which you can grow your business. Loyalty programs allow for an exceptional experience that can easily retain your existing customers, reduce the churn rate, and acquire new ones without spending a single cent on marketing.
Loyalty programs are a definitive approach to lure consumers back into your store. This behavior allows for more repetitive spending and generates the perfect user-experience that encourages customers to give your store good reviews and ratings; creating genuine ambassadors of your brand. These can be monitored by your cell phone repair shop POS software.
Churn is the rate at which customers leave a business and flock to their competitors. There can be several reasons for this occurrence. However, the most prominent reason is a bad user experience. Loyalty programs generate a better trust factor between you and your business. And if you do it correctly, your business can take advantage and capture the attention of customers who’ve had a bad experience with any of your competitors.
The Clever Way to do Business
Consumer loyalty is a rare and precious point of interest for almost all the businesses out there. Staying ahead of your competition is vital because if your competitor comes up with a better offer, your customers are surely going for it — even if they have a loyal and positive history with your business. Reports suggest that 57% of customers stopped buying from a trusted business due to its competitor offering a better experience.
The clever strategy then seems like offering dedicated loyalty cards for customers. This way, you can manage each and every customer experience after a purchase. Your repair shop invoicing software can help keep track of vital metrics such as churn, response rates, and retention rates every time you send out a feedback request from your customers. This way you can also judge how well your loyalty programs are performing, and what to tweak to enhance your customers’ loyalty with your business.