3 Reasons Why as a Merchant You Should Offer a Rewards Program
It’s often said that it costs more to acquire a new customer than it does to sell to an existing one. According to Inc.com it’s about 5-10 times more — and your current customers spend 67% more on average than the typical first time customer. So, what are you doing to keep your customers coming back to your business?
If you’re like many merchants, you may have implemented a rewards program. If not, what are you waiting for? Here are the reasons you should put a customer rewards program in place at your business.
A rewards program gives your company an opportunity to thank your customers for doing what you want them to do: coming back and giving you repeat business. You already have a base of loyal customers, and creating a customer loyalty program helps you strengthen those relationships and grow your business. Research has shown that U.S households have an average of 14 rewards program memberships and are “extremely likely” to return to a business if they have a rewards card from that business.
Increases Frequency of Visits
A rewards program keeps your business “top of mind” with your customer. Having a card on a keychain or wallet is a regular visual reminder to customers to visit your business again vs. choosing a competitor. Your rewards card could be the deciding factor. You may not even have to remember to carry a specific card. Rewards programs are evolving and using new technologies. With some programs you can flash your cell phone and others your rewards registration is attached with your credit card number. Evolve Systems is proud to offer Sterling Rewards Cardless program.
Opportunity to Communicate Directly With Your Customers
When a customer signs up for your rewards program, you gather their contact information. This opens up the possibility to develop a stronger line of communication with them. You can target your marketing to them with their permission. For example, you can send a birthday message, let them know of upcoming promotions and special offers, or even send a “we miss you” message if it’s been an extended period since they’ve visited. Perhaps it is slower than normal day and you are offering a limited time only special to entice increased traffic.
Another benefit of having the customer contact information is that it allows you to measure the success of your program and your rewards. Robust reporting can track participation rates, customer spending habits and other data to shape a program that is a win-win for both you and your customers.
No one can deny that businesses are looking for ways to maximize every customer interaction to ensure repeat business whenever possible. These are just a few of ways your business can benefit from implementing a rewards program.
If you haven’t gotten your rewards program up and running yet, or you don’t feel your program is meeting its potential – we can help you. We have some great options with the flexibility to fit your specific needs and leverage your merchant services. Contact us at Evolve Systems for more information.
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