customer loyalty programs in retail

Customer Loyalty Programs in Retail: How to Reward Your Customers

Customers are free-willed and open to any product in the market. However, they would swiftly move to another seller or vendor if they had a bad experience with the current one. Brands should work towards eliminating those ominous signs without wasting a split second. One of those ways is to reward them through customer loyalty programs in retail.

Failing to understand customers’ psyche and taking them for granted are huge turn-offs. Already a huge marketplace with fierce competition exists. Therefore, sellers have to stand out to earn the attention of a buyer. 

There’s no singular way to look unique – a set of good marketing practices can help. By ‘good’, we actually mean attractive yet ethical practices and not misleading ones. 

The following outlines some effective ways to reward and appreciate your customers.

1- Offer discounts for customers

Customers love discounts. Instead of using clickbait offers, genuine discounts go a long way. If you can research a bit for what your competitors offer and provide better discount rates in the market, it generates meaningful results for your business. 

2- Point-based Loyalty programs

In shopping malls, supermarkets, retail stores, etc. point-based loyalty programs drive a great customer count. You can choose to have custom cards (with magnetic strip) designed and distributed among your regular and visiting customers. Based on spends or purchases, points get collected and translated to rewards. It encourages customers to shop regularly at your place as they get to collect points and redeem their rewards.

3- Membership-based rewards

How to reward special customers? VIP membership programs for access to special services, discounts, unique shopping experiences and opportunities to exclusive members on paid programs. Make sure these benefits are awarded to only members or it may lose value.

4- App-based rewards programs

Do you own a custom delivery app for your customers to purchase goods & services? This offers a wonderful opportunity to market your business and attract customers from a wide demographic location where you deliver those services. 

Cruzo has introduced a Wallet Incentive feature, where a customer can be incentivized with a percentage of added wallet money. For e.g. Mr. X adds Rs. 1000 into his digital wallet. As a business owner, you wish to incentivize customers adding Rs.1000 to 2000 into their respective wallets by offering a 5% cashback. Here, Mr. X will receive Rs. 50. This configurable wallet incentive feature can become a game-changer in real-time. 

5- Purchase-based rewards

Why does a customer come back to you? It could vary from one reason to another, such as excellent quality services, staff behavior, complaint response system, exciting offers, loyalty rewards and so on. 

Your regular customers can spread the word for your brand instantly and it’s crucial to keep them happy most of the time, if not always. Purchase-based rewards open a phenomenal way to attract customers. If a customer’s amount spent in your business crosses Rs. 15000 or more, you can offer a free gift or a cashback reward. 

Intelligent ways of rewarding customers prove helpful in customer retention. Any strikingly innovative idea of benefiting customers in their best interests elevates brand loyalty and positive word of mouth.

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