Top 5 ways to grow your sales (& profit) with your loyalty program

In the previous article, we showed you the sales boost and increase in customer spend an effective loyalty program delivers to your business. So let’s dive into what it takes to build an effective loyalty program.

First, let’s agree that a loyalty program is a way to build a stronger relationship with customers who already buy from you.

Why does this matter?

By retaining your customers and getting them to come more often, you increase the lifetime value of each relationship. Loyal customers don’t just generate more sales, they are also a lot more profitable.

Here are 5 tips for building a successful loyalty program (or turbocharging the one you already have):

1- Simplicity and consistency:

Design a program that’s easy to understand. This makes it easy for your customers to see what’s in it for them and easier for your staff to promote your program in store.  

2- Incentivize sign-ups:

Reward your customers for signing up and for referring their friends. This can be in the form of an instant discount or rebate on their purchase, a one time promotional gift or a generous gift of “welcome points”.

3- Regularly reach out to your loyalty program members:

Promote regularly to stay top of mind. By enrolling customers in your loyalty program, you have captured their name and contact information. Use it to send regular communications about promotions, events or other news to keep top of mind and to keep your customer list fresh.

4- Reward all interactions with your brand:

Build your loyalty program to include rewards for a range of interactions with your brand. Your members should earn points for their purchases, but also for interactions like referring friends to sign up, writing & posting reviews of your products and their experiences, as well as sharing news about your business on their social media accounts.

5- Tag your customers’ transactions:

Make sure that during checkout, you always associate your program member with the transaction. This is important so that they can earn points, rebates or other rewards that come with your loyalty program. It also allows you to measure how well your loyalty program is performing and what types of promotions work best. 

Finally, the most important thing to remember is to talk about your loyalty program with each customer.  The more members you enroll, the faster you will grow your business.  In our next article, we will share tips on how you can increase customer enrollment into your loyalty program.

Until then, please feel free to reach out to success@thirdshelf.com if we can help your business grow.