Thank you to CO–U.S. Chamber of Commerce for providing the content on How to Create a Customer Loyalty Program for Your Business.
Customer retention is directly linked to profit. Here’s how to thoughtfully use rewards and discounts to keep your best customers coming back for more.
By: Emily Heaslip, Contributor
It’s one of the most cited statistics in the business playbook: 80% of your venture’s profit will come from 20% of your existing customers. Loyal customers are your most valuable customers, which is why many small business owners go above and beyond to incentivize their customers to return time after time. A loyalty program can improve customer retention, bring in more positive customer reviews, and build the kind of brand loyalty that can help you sustain the business through a recession. Here’s how to set up and run an effective customer loyalty program.
Design your program around a goal
What’s the customer behavior you wish to incentivize? Design your loyalty program to reward your customers for taking a specific action. For instance, if they visit your cafe for a coffee four times a month, the fifth coffee is free. This encourages more frequent visits, bringing in foot traffic and increasing sales.
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CO–by the U.S. Chamber of Commerce.
