How to increase sales with a customer loyalty program

What is a customer loyalty program?

To understand this topic, you need to understand what a loyalty program is in general. It is a method of motivating customers and clients that is often not taken seriously. And that's a shame. The program allows you to better retain customers, as well as attract new ones, and expands the profit by increasing sales.

Loyalty discount programs are widespread in our country. Its essence is to provide customers with discounts in a one-time or cumulative form, i.e. it is a card that gives advantages in a particular store (cost reduction). Many owners issue them to stimulate sales, as the discount usually appears after reaching a certain amount when making a purchase.

A bonus loyalty program is very different - it does not imply price reductions. When a customer makes a purchase, he or she is credited with bonuses in the form of points, units of money, etc. Most often, fictitious currencies are credited that were created specifically for this purpose. Such a program is designed for customers who often make purchases in the same store. In this case, large amounts of bonuses are accumulated. This is a very good stimulant for the buyer, which is ultimately beneficial for the entrepreneur. But on the other hand, this program is a poor motivator for people who make only one-time purchases and rarely come to the store.

Multi-tiered loyalty programs

Their difference lies in their simultaneous complexity and simplicity. The main rule is that the more money you spend, the more bonuses you get. One example of such a system is VIP and Double VIP. The main advantage is that it is a much better incentive for people to spend money, as spending often means gaining access to a more privileged group.

To create a good loyalty program, imagine yourself as a customer and ask yourself what exactly you would like. Conduct a detailed analysis of the potential customer's desires based on the ratio of the services or goods offered. This way you can answer the question immediately.

Pay attention to competitors. This is also very important. Sometimes you can borrow something from them and transform it in such a way that it becomes your original idea. So don't shy away from it.

Implement the most daring ideas in your store. This will help you offer the most attractive loyalty program possible

Webinar "Analyzing the effectiveness of loyalty programs"

At the webinar, we reviewed:

• Analysis of sales
• Analyzing the effectiveness of promotions
• Raffles, lotteries, and how to use customer excitement

This time, we lifted the veil of secrecy and showed how to analyze the effectiveness of the events held using the examples of Torgsoft promotions and drawings.