A customer loyalty program can be an important part of your company’s success. Loyalty programs acknowledge that your customers have lots of options, thanking them for coming back to you. These programs offer an incentive for customers and clients to come back and in some cases even help you gather sales data for your marketing efforts.

How to Build a Loyalty Rewards Program for a Small Business

If you want to start your own program, the following ideas will get you started:

  • Decide on the rewards system: Consider how you’ll accumulate points, what the rewards will be, how much customers will need to buy to be rewarded and what the rules will be.
  • Choose the delivery system: Do you want to use punch cards, a VIP program or a loyalty program app for small businesses? How will you gather information and reward your customers?
  • Run the numbers: Make sure the rewards you’re offering are rewarding for customers but will still boost your bottom line. If you decide to gather customer data as a part of the program, make sure you’re compliant with all relevant laws.
  • Think big: Loyalty programs don’t have to be as simple as “buy two get one free.” You can build branded rewards programs that promote brand recognition. Another option is to gather client data as a part of your program so that you can better reach your customers. Consider multiple levels of loyalty rewards, and think about how your program might evolve as your business grows.
  • Plan specials: Above and beyond your loyalty program, plan to have additional specials and surprise rewards for your most loyal customers. Doing so will keep the program fresh for customers and get them more excited about shopping with you.
  • Consider less frequent contact: Once you get a customer’s contact information when they sign up for your loyalty program, be wary of contacting them too often. Most customers already get a great deal of marketing, and you want your marketing messages to be welcome, not annoying.
  • Pay attention: Take a look at the loyalty program ideas for small businesses you see around you. Which loyalty programs did you sign up for? Why? Gather a file of the programs that have captured your attention. Chances are, they’re good ideas that you can adapt for your own company.

If you’re interested in starting your own rewards program, consider something bigger than a punch card. Think of a program that lets you gather sales data and that’s easy to administer and simple for customers to use.

To get started, contact Velocity Merchant Services for a free consultation about smart, digital POS systems, apps and technology that can help you launch an automated, effective and even fun program to reward your best customers. The Clover® app, which is part of the POS system, can give you the tools to start a reward program, and a specialist from VMS can help you learn more so that you can launch your program and start reaping the rewards for yourself and your customers.

Have questions?  Talk to one of our Small Business Specialists.