A loyalty program is a great tool for creating customer commitment for your Gold Coast retail business. Here, we look at the different models and how they benefit your customers.
A way to show thanks to dedicated patrons, a loyalty program helps to give loyal customers an incentive to keep shopping with a brand or business. This tactic works – in fact, 79 per cent of consumers look for deals in reward programs before following through with a purchase, according to research from Hawk Incentives.
When it comes to choosing what sort of loyalty program to adopt for your retail business, you'll first need to examine your means and what sort of benefits you're happy to offer. This isn't only from a financial standpoint, but as a time commitment, too. Will your benefits expire over time, or are you setting up your customers for a long-term relationship with your brand?
The various types of reward programs have different models and ways for customers to reach the end goal, with a range of benefits for the business.
A point system is one of the more popular methods of creating customer rewards. The process here is simple: spend more for rewards. For example, your customers could be rewarded 1 point for every $10 spent in your store. Once they've earned enough, they can exchange points for a product. This is a tactic adopted by many retailers – including make-up giant Sephora – and it creates a gamification element for your business in that customers are working towards a goal or reward. This works particularly well for businesses with apps as your customers can watch their points grow and visualise the rewards.
It's no secret that we as consumers love to feel special. For this reason, many businesses adopt a tiered approach to their loyalty system. This is similar to the point system as purchases allow customers to accrue different rewards. However, these points add up to rank a customer as a particular level, with different benefits at each stage. For example, a level one reward might be a voucher for 20 per cent off purchases, whereas a level three reward may include a special box full of items for that customer.
There are plenty of non-self serving ways to reward your customers. A system that can drive sales and boost your business' public image is known as a value or ethics-based system. The key is identifying a charity or cause that's in line with your company values. From here, you can encourage your customers to spend more by donating a portion of sales to this particular cause, for example, $10 from every $50 sale of a specific product. This also helps in creating meaningful customer relationships through charitable action.
Looking for a new Gold Coast commercial property for your company? Get in touch with the team at Ray White Surfers Paradise.