Retail management advice: Small Business Loyalty Programs: Don’t Mimic the Big Guys

Many small business retailers copy the loyalty programs of big retailers, too many in fact. Here at Tower Systems, based on years of experience working with retailers and running our own shops, we think this is a mistake.

Big retailers can afford to offer generic rewards like points, which mean what anyway (?), but small businesses need to be more creative and offer rewards that are relevant to and understood by their customers.

Here are a few tips for creating a loyalty program that will wow your customers:

• Make it personal. Don’t just offer generic rewards like points. Instead, offer rewards that are specific to your business and your customers.
• Make it easy to participate. Your loyalty program should be easy for customers to understand and participate in. The last thing you want is for customers to get confused or frustrated.
• Make it rewarding. The rewards you offer should be valuable enough to keep customers coming back. Don’t just offer small discounts or coupons. Instead, offer rewards that your customers will actually want, like free products, exclusive experiences, or early access to new products.
• Make it understood. Cash is what people understand the best. A dollar is worth a dollar.

If you follow these tips, you can create a loyalty program that will help you attract and retain customers.

Here are some specific examples of loyalty programs that small businesses can offer:

• Discount vouchers: This is a simple but effective way to reward customers. You can offer discount vouchers for a percentage off their next purchase, or for free shipping or other perks.
• VIP card: This is a great way to show your most loyal customers some extra love. VIP cardholders can enjoy exclusive rewards, like early access to new products or special discounts.
• Bundled package offerings: This is a great way to encourage customers to spend more money. You can offer bundled packages of products or services at a discounted price.

No matter what type of loyalty program you choose, make sure it’s something that your customers will actually want to participate in. If you do that, you’ll be well on your way to building a loyal customer base.

Here are more thoughts on loyalty programs for small businesses:

• Be creative. Don’t be afraid to get creative with your loyalty program. The more unique and interesting your program is, the more likely customers are to participate.
• Be flexible. Your loyalty program should be flexible enough to change as your business grows and evolves. Don’t be afraid to make adjustments to your program as needed.
• Be social. Promote your loyalty program on social media and other channels to reach a wider audience.

By following these tips, you can create a loyalty program that will help you grow your small business.

Now, our preference is discount vouchers because we know they work, we see it in business data from many hundreds of local small business retailers. Shoppers love them, and spend as a result.