A business needs to have a loyalty rewards program. This is important for a good number of reasons. Customers’ trust and preference of your brand and business top the list. Statistics show that customers are over 82% more likely to patronize businesses with loyalty rewards program set up and about 17% less likely to come back to buy from such. The reason for this is not farfetched. It is easy and affordable to sell to current customers than prospective ones.
Loyalty programs can be contactless or physical. Contactless loyalty programs are the current trend and the most efficient method. However, one truth remains that they are directly proportionate with increased sales. How then do businesses maximize their profits with a contactless loyalty rewards program? Read on.
- The Points System
This is a very efficient method of getting your customers to stay loyal to you and thereby making more profit. It works by setting up a system that makes your customers earn points as they buy from you. The points earned as they make purchases serve as a potential value exchange. They can get to redeem their points by using it to purchase a product or item in your store or access some other benefits that your platform provides. They would have access to how their points are accumulating through logging into their customer portal from where they make purchases on your platform. This gives them a sense of inclusiveness and transparency with the system. And you can encourage them to buy more to earn more points. They would naturally be spurred to do this. As they buy more, that results in more in-store profits for your business.
- A Categorized Rewarding System
This is pretty simple to comprehend and implement. It works on the logic that the customer who spends about $2000 in your business shouldn’t have the same reward as the one who spends $200. Hence, you could have a categorized rewarding system that rewards customers according to how much they buy from your store. Examples of such packages you could have are The Silver Level, The Gold Level, and The Platinum Level. These rewards vary in degree of appeal and exquisiteness per level of patronage. This does help to invariably raise the number of persons who spend their money on your products. This is an essential effect of the alluring reward packages that await them, as they make more purchases on your platform.
- A Yearly or Annual Fee Method
Here is another excellent strategy to maximizing profits in your business through contactless loyalty rewards. A great example of a business organization making use of this system is Amazon Prime, which charges $99 per year as a membership fee. This is a straight-up form of making an optimum profit for your business while still paying for products. Thus, the customers already paid for the extra elements and rewards. At the same time, they stay loyal as customers to you, purchasing your products on a steady basis.
- The Game Method
How thrilling would it be if you turn your rewards loyalty to a game? The loyalty reward system does not have to be all boring; a dose of creativity can be added. Games such as the spinning wheel are usually very efficient for this kind of use. An example could be when a customer makes a purchase. After a successful transaction, the platform gives him or her a notice of invitation to play a game. If the customer wins the game, he or she will qualify for a gift or other rewards. There are several other types of games that can get the job done. This system is thrilling, and it broadly encourages user engagement on your platform. Such engagements lead to sales in the short and long run and thereby help you to maximize profits.
- Brand Collaboration
It is possible that your business has a loyalty reward system, and your customers do not know about it. Hence, you need to engage specific marketing strategies to get this to your customers and entice prospective ones. A reliable way you can do this is by collaborating with another brand or business with which you can market their products on your platform and vice versa. This helps to increase the engagement of the loyalty programs of your business. Undoubtedly, that leads to profit, and this method would help you increase that profit.
Businesses thrive on profits. These loyalty rewards ideas are practical ways you can maximize your in-store profits. It would be best if you tried them out.