Handy Tips To Set Up A Customer Loyalty Program

Handy Tips To Set Up A Customer Loyalty Program
It can cost up to five times more to attract a new customer than it does to keep an existing one. Learn these tips to set up a customer loyalty program for your business.
by Square Dec 04, 2020 — 3 min read
Handy Tips To Set Up A Customer Loyalty Program

It can cost up to five times more to attract a new customer than it does to keep an existing one. Existing customers are also likely to spend more than new customers. Despite this, a lot of small businesses spend more time, money and effort on gaining new customers than they do on nurturing and deepening the relationships they have with existing customers.

A customer loyalty program is an effective marketing strategy that focuses on rewarding customers that regularly engage with your brand. Most of us are familiar with the loyalty and rewards programs run by large corporates and the airlines, however customer loyalty programs are becoming more popular with smaller brands as businesses look for a way to stand out and create ongoing relationships with their customer base.

What is a customer loyalty program?

A customer loyalty program – sometimes called a customer rewards program – is a promotional tool used to build customers’ connection with your brand and encourage repeat business.

From points-based loyalty programs where customers are rewarded for spending with you, to paid programs that provide VIP benefits and volume-based offers (such as offering their 10th coffee or car wash for free), there are many different styles of customer rewards programs.

What are the benefits of a customer loyalty program?

A Nielsen report – How loyal are your customers? – measured loyalty sentiment by surveying 29,000 respondents globally, and found that 92% of respondents from the Asia-Pacific region are more likely to shop at a retailer that offers a loyalty program.

Square sellers reported that customers who are enrolled in a Square Loyalty rewards program are twice as likely to be repeat customers and spend 37% more than those who aren’t.*

A well-structured and executed loyalty program will deliver:

What should I offer as part of my customer loyalty program?

Your business’s loyalty program should be customised to reflect your brand. The way you approach your customer rewards program will depend on the size of your business, the products or services you sell, how often your customers shop with you, and many other factors.

Some popular loyalty program approaches include:

What features should I look for in customer rewards program software?

How do I get started with Square Loyalty?

Square Loyalty helps you thank regular customers with a rewards program that’s run straight from your point of sale. There are no long term contracts, and you’ll only pay for what you use. Visit the Square website to learn more or start your free trial.

*Numbers are based on data collected by Square of Square sellers enrolled in Loyalty in the U.S. On average, 30% of U.S. customers enrol in Square Loyalty.

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