Customer rewards and incentive programs have become big business for many brands and retailers. Grocery store chains, online stores, airlines, restaurants, and even your local car wash all have loyalty programs to keep customers coming back.
And you know what? It works!
A customer is 60% to 70% more likely to buy from a company they’ve already done business with. Likewise, they are only 5% to 20% likely to do business with a company they’ve never done business with. A whopping 65% of a company’s business comes from customers they’ve done business with in the past.
Do customers love loyalty programs? You bet they do! The more elite, the better, too.
These programs influence where a consumer shops and even how they shop. 90% of consumers said that when it came down to deciding whether to do business with a company with a premium loyalty membership and a company that offered a lower price, they would choose the one with the premium loyalty membership.
Loyalty programs are pretty powerful when done correctly, but are they right for your pool and spa business? Read on to find out.
The definition of a “good” incentive program depends on who you ask.
A good customer loyalty program offers some type of gain to the customer. In one survey, 57.4% of consumers said that their reason for joining a loyalty program was to save money, while 37.5% said it was to receive rewards.
Ask a business, and they will say that a good incentive program helps solve the number one most significant challenge that plagues 61% of retailers — customer retention.
How does that happen? Take a look at these features used by some of the most successful loyalty programs in the world:
A great loyalty program will help you retain your existing customers and attract new ones, but they can also draw inactive customers back in and gently nudge all customers to spend more. When you look at some of the best customer loyalty programs, you can see that they have all the components necessary to accomplish those goals — and you can pick up a few pointers in the process.
A well-constructed customer incentive program can provide great rewards for the small retailer. Some of the most important or relevant include:
You may find other benefits with your program depending on your type of business and customer base. Different industries have different needs and outcomes for programs, so you have to look at the potential within your industry and business while weighing critical components like your budget and ability to implement the loyalty program you want.
Of course, any incentive program is not without its challenges. You may find some areas more difficult than others, but you can overcome them with a bit of creativity and out-of-the-box thinking.
Loyalty programs are an excellent way for small businesses to get new customers and increase profits. It can also help to propel your pool and spa business by creating a grassroots type of marketing activity. It’s another way to get people talking about your business — and coming to see what all the buzz is about.