One strategy every shop, on the high street or online, ought to have for building a relationship with customers and bringing them back is a loyalty points scheme — whether on a physical card or an online one. But if you are new to running a shop and still unsure whether to bother, or where to begin, here are the answers.
Loyalty points schemes: what makes one work, and what makes one flop
Have a look through your wallet and you will find at least one loyalty card in there, or at least one app collecting points for a brand you like. It is a strategy that has worked its way into every kind of shopping: buy a single cup of coffee and you are collecting points, or buy something large and expensive and collect a great many more — points you are then invited to spend on a discount, a promotion, or a special gift reserved for the regulars who keep coming back or keep using the brand.
A points scheme, then, is a strategy that does both sides good. From the customer's point of view it is a matter of shopping and steadily building up points, and once they hit the threshold there is a special offer waiting that makes it all feel better value. From the shop's point of view, it becomes much easier to turn a passer-by into a regular, because customers come back more often — and you also gather data on how each of them buys, which you can analyse and build into your marketing plans.
Why a loyalty card is worth doing
A points scheme is a piece of marketing that works for everyone from the small grocer to the corporate giant. Its virtue is not only that customers collect points towards a perk; it does the shop or the brand good in several other ways too.
- It builds awareness of your products and services : a points scheme can be used to promote something new. Buy the shop's new product or try its new service and you earn double points, which gets customers interested, prompts them to try what is new, and puts the details of it in front of them straight away.
- It lifts sales : a loyalty card encourages customers to come back and buy again more often.
- It leaves customers feeling good : in a fiercely competitive market, competing on discounts, swaps and giveaways is not always the best answer. Rewarding the regulars who come back often with something special — a tester of a new product, a seasonal gift, an exclusive discount — is what makes customers want to keep collecting, builds loyalty to the brand, and leaves them feeling warmly about the shop.
Why some loyalty cards fall flat
Not every shop that runs a points scheme succeeds with it. These are the ways of going about it that do not work.
- The terms are too hard : rules that are difficult to understand, conditions for earning points that are too demanding, or a target set too high will lose you customers easily.
- The rewards do not appeal : if what the scheme is aiming at, or the special rewards on offer, are not tempting, the whole thing falls flat.
- Customers do not want the products or services : points may come back on every purchase, but if the products or services themselves do not please, the cycle of collecting may never start at all. So a shop should keep a constant eye on the quality of what it sells.
Five points strategies that appeal to committed shoppers
1. Make collecting simple and worthwhile, with rewards that are not hard to reach
Making a loyalty card appealing at the outset is not difficult. Start with rules that are easy to understand, and terms that put the reward within reach — five points and you get a discount, say. You might also switch to an online loyalty card rather than a paper one, which does away with cards being lost or left at home.
2. Choose rewards worth collecting for
One thing that appeals to keen shoppers is an interesting reward, which pushes customers to collect more points in order to get it — a limited edition item, for instance, not sold in the shop and available only in exchange for points.
3. Let points be spent in several ways
A points scheme is a flexible piece of marketing that can be shaped to suit different groups of customers. Points need not only be exchanged for a reward; they can be taken as a special discount, swapped for a tester, or shared with a friend — all of which strengthens the relationship between the brand and its customers.
4. Use the right loyalty platform
In a digital age, online shopping keeps growing in popularity, and an online loyalty card is something no shop should miss. These platforms do more than collect points: they come with all sorts of extra features that make it easier for customers to get to know your brand and reach it.
5. Let customers check their points and other details quickly
With an online loyalty card in particular, customers should have a quick way to check how many points they have and what their membership status is, see the rewards on offer, and redeem points conveniently. It does a great deal for the impression they come away with.
If you would like to run a points scheme online, we recommend Qashier's POS system, a retail management system with everything you need, including a modern, easy-to-use customer loyalty programme with the features a wide range of shops need — one that turns passers-by into regulars quickly.
If our products interest you and you want to push your business forward, ask us for more details on Line Official: @qashier.th or call 02-544-0267