A customer often gets attracted to an SME by a product or service that it provides. Many small to medium-sized businesses find it quite difficult to encourage their customers to stay or return again and again. This is mainly due to the reason that so many competitors are there in the market that offer lower prices for the same product or service.
Many studies have suggested that a large number of customers prefer sticking to a brand if they feel that the business was good value for money. So, how can SMEs deliver value for money? Well, one of the most effective ways to do so is by designing a superior quality loyalty program solution, customized to meet the varied expectations of today’s customers.
Though, designing and implementing a loyalty program seems a bit of a time-consuming affair. However, if designed properly, it can bring amazing outcomes. Businesses in today’s time, especially after the COVID-19 pandemic are striving to stay competitive. Implementing all the best practices and tactics to keep customers coming back to your business has become the need of the hour.
Who can create loyalty programs?
This is one of the most commonly asked questions about loyalty programs. It is important to note that there is nothing to do with the size of a business to create a loyalty program. Businesses of any type and size can create loyalty programs to reward their repeat customers.
The main aim behind creating a loyalty program solution is to keep customers coming back and incentivize them for doing so. For example, businesses can allow their customers to earn certain redeemable points for each purchase they make. They can redeem these points after they spend a particular amount to get a discount or free product. Based on the industry in which you operate and the products/services you sell, you can create loyalty programs that will benefit you and your customers.
Now, let’s look at the types of loyalty rewards programs and their benefits for small and medium-sized businesses.
Types of loyalty programs
There are different kinds of loyalty programs that a business can consider such as:
Simple rewards cards loyalty program:
It allows customers to collect points for each purchase that they make.
Privilege loyalty program:
These programs usually combine subscription fees and offer personalized discounts, content, or services to the customers.
As a privileged loyalty program may require a huge financial investment, SMEs can start their initial journey with a simple rewards card program. This program can be used to offer a bonus or discount to the customers based on their purchases. Being an SME, if you are thinking about what benefits you’ll get by implementing a rewards program, then you will be amazed to know that there are several benefits of implementing a rewards program. Let’s have a look at some of the key benefits.
Benefits of implementing a loyalty and rewards program
To create a better customer experience:
A number of customers accept that being a member of a loyalty rewards program encourages them to spend more with that particular organization. Thus, by offering a loyalty rewards program, SMEs can prevent the chances of comparisons and price competition with bigger enterprises. Besides, offering rewards to the customers for making repeat business creates an emotional connection between the business and its customers. The rewards are a great way to show your customers that their support is appreciated and valued.
To gather important data:
A loyalty rewards program is also beneficial in collecting valuable data about customers that can be used to create a customer lifetime value. If you are wondering how data collection can help then it is important to note that based on the collected data, an SME can easily and efficiently customize their rewards for each customer. This way, you can create a more personalized and enhanced customer relationship.
To increase the chances of recommendation:
If a customer likes the products, services, or rewards offered by your business, the higher the chances are that they will recommend the business name to their friends and family members. This makes them a reliable advocate for your brand that will eventually help in bringing in many new customers.
To build better future marketing strategies:
The data SMEs collect from their reward programs can be used to build future marketing strategies. How? Well, the data you collect via your rewards programs comprises customers’ purchase history, referrals, activities, buying patterns, discounts usage, and much more. You can use all these details to determine the types of rewards that are most popular among your customers. Besides, it becomes easier for you to know what offers or discounts are working best to encourage your customers to keep coming back.
To conclude, rewards programs are not just beneficial for large corporations, even small and medium enterprises can also design rewards programs to enjoy assorted benefits. Though, it is quite difficult for SMEs to implement rewards programs as cash doesn’t flow as easily as in bigger enterprises.
However, with the help of loyalty program experts like LoyaltyXpert SMEs can design the best suitable rewards and recognition program as per the current trends, user preferences, and behaviors.
If you are looking for the best loyalty programs, connect with the team of professionals at LoyaltyXpert as they can guide you thoroughly about how to create the best loyalty program solution to meet your exact business expectations at the right time with accurate results.