A scan data loyalty program can boost sales at your business and retain customers for years. These programs are especially relevant in the tobacco industry, where engaging consumers and meeting industry standards is crucial.
Loyalty programs reward your clients for sticking to your business. If you obtain a point-of-sale terminal, you can easily set up a loyalty program in a single day. Integrating your POS system with loyalty solutions can also help retailers fulfill eligibility criteria for extra income.
Read below to find out 5 benefits of creating a scan data loyalty program, including how these programs can help attract consumers looking for discounts and extra value, and even how to get a free digital payment terminal for your business!
What is a Scan Data Loyalty Program?
A scan data loyalty program rewards your clients for purchases at your store. Scan data loyalty programs are widely used in the tobacco industry to track tobacco sales and incentivize participation from retailers.
It works with a point-of-sale terminal (POS system, a digital cash register integrated with a payment system), which gives discounts/store credit to certain products as they are scanned by your vendor. Scanning products at the register collects tobacco scan data, which is then reported to manufacturers like RJ Reynolds for rebates and incentives.
That means you can register certain products at your store with a discount, or even integrate the POS system with a gift card to award customers with store credit. Scan Data Loyalty solutions can automatically report customers’ phone numbers to manufacturers to help retailers earn extra income and offer special promotions.
Scan data loyalty programs are easy to set up: all you need to do is determine the amount of store credit given to clients per amount spent in your store. Retailers can participate in manufacturer programs by submitting reports of their sales data, often resulting in monthly payments and buydown promotions.
Or, you can select products that will give discounts to clients. For example, if you want to encourage clients to buy 3 drinks instead of just 1, offer a good discount that will make the triple purchase worth it.
Giving out store credit and discounts can seem like “lost money”, but we can guarantee that it pays off when you gain more loyal clients at your store!
What are the benefits of creating a scan data loyalty program?
There are many benefits when you reward customers. After all, a rewarded customer is probably going to like your store more than competitors’.
Scan data loyalty program providers offer a range of services and support, including assistance with setup, compliance, and ongoing management to ensure smooth implementation and operation. These services often include detailed sales and scan data reports, reimbursement programs, and promotional management, all designed to help retailers maximize revenue and streamline operations.
And that brings many benefits to your business including bigger profits since loyalty program customers usually spend 18% more than regular customers.
Scan data loyalty programs provide detailed reports and analytics, allowing retailers to track sales insights, identify buyer patterns, and understand customer preferences and sales trends. Real-time data access enables retailers to view sales data as it happens, supporting smarter decision-making. Automated price submissions can simplify pricing processes for tobacco retailers, while centralized software solutions allow management of inventory, loyalty campaigns, and more from a single interface. Loyalty programs can also be customized to offer personalized rewards and targeted promotions based on customer purchase data. Staying updated with changes in tobacco scan data guidelines is crucial for maintaining compliance and maximizing incentives.
#1 Customer retention
It’s easier to retain customers than to gain new ones. Gaining new customers involves a lot of costs: advertising and marketing being the biggest.
So, it’s better to retain customers and make them loyal with a solid rewards/discount program — if you offer good value for your clients, they’ll stay.
Let’s say you own a convenience store. If you award store credit for purchases of drinks and snacks, you’ll probably retain those customers: after all, they’ll be able to use their store credit later on to claim some free goodies, especially in settings like a busy coffee shop POS environment.
And while it might seem like you lose money with goodies bought via store credit, the retention of that customer pays off.
Usually, customers will make an effort to make the most of any loyalty programs they join and will prefer to shop at your business whenever possible.
#2 Customer referrals
Word of mouth is the best free marketing out there.
And companies that offer good discounts and rewards are referred more than regular stores to friends and family.
So, if you want to increase your customer base without additional spending on advertising, you can do so with a scan data loyalty program and even add self-service kiosk ordering options to reach more customers efficiently.
People will tell others of the discounts you offer or the store credit for purchases. And that means more clients lining up to your business!
To make this strategy more effective, your vendors should always mention the benefits of the loyalty programs to your customers and make sure they understand how much money they can save.
#3 Customer reviews
Loyal customers are the ones who make good reviews.
Regular customers usually don’t even bother making the effort of posting a review online.
And unsatisfied customers will make bad reviews just to tarnish your reputation.
So, your main goal should be to get as many good reviews as possible. And a scan data loyalty program is the best way to get customers on board and happy to write a positive review on your business.
One tip is for you to offer a freebie in return for a customer review. But don’t offer this freebie to any customer, only to those who have shopped at your business for a while.
Many loyal clients will be happy to write up a review in return for a free drink or snack.
#4 Increase average sales per customer
Loyalty programs increase the purchases made by customers thanks to the incentive from discounts or store credit.
In other words, customers will add items to their shopping cart if it means a reward on their next purchase.
If buying 3 drinks gets a reward, chances are regular customers who would just get 2 drinks will now add a third to their basket.
And that means you make extra money from the same client base.
#5 Sell items that are piling up on shelves
If some items are piling up in your store and aren’t having any luck with the customers, offer your clients a big discount or plenty of store credit for them.
Chances are some clients will look at the product as a bargain and then you’ve rid yourself of some deadweight stock.
This strategy not only helps you empty your shelves but also builds up loyalty with customers.
They’ll perceive value on the purchase and come back more frequently to see if you put a big discount on a product.
Data Programs and Security
In today’s fast-paced retail environment, scan data programs have become essential tools for businesses looking to enhance the customer experience and increase revenue. By leveraging scan data loyalty programs, retailers can gain valuable insights into customer purchasing habits, allowing them to tailor promotions, loyalty discounts, and incentives that truly resonate with their shoppers.
One of the biggest advantages of scan data programs is the ability to track sales data in real time. This empowers retailers to reward customers for their purchases, encourage repeat customers, and offer targeted promotions such as multi-pack discounts. For example, convenience stores can use scan data to identify which tobacco products are most popular and create special offers or loyalty rewards that keep customers coming back for more.
However, with the collection of detailed sales data comes the responsibility to protect it. The security of scan data is paramount, as it often contains sensitive information about customer purchases and sales volume. Retailers must ensure that their point of sale (POS) system is secure, compliant with manufacturer guidelines, and equipped with features like PIN pad authentication to safeguard customer information. This not only protects your business from potential data breaches but also builds trust with your loyal customers.
Compliance is another critical aspect of scan data tobacco programs, especially for tobacco retailers. Accurate data submissions to tobacco manufacturers are necessary to qualify for rebates, incentives, and loyalty discounts. A secure and compliant POS system ensures that your sales data is reported correctly, so you receive the full benefits offered by tobacco companies and manufacturers.
Integrating scan data programs with other retail systems, such as inventory management and employee management tools, can further enhance your business operations. For instance, by analyzing scan data, you can adjust inventory levels based on actual sales trends, reducing waste and ensuring popular items are always in stock. This level of insight helps you manage your store more efficiently and respond quickly to changing customer preferences.
Choosing a reputable data program provider, like Modisoft, is essential for maintaining the integrity and security of your scan data and loyalty programs. The right provider will offer robust tools to manage your data, ensure compliance, and help you maximize the value of your loyalty initiatives. By prioritizing data security and compliance, you not only protect your business but also create a foundation of trust that keeps customers coming back.
Ultimately, scan data loyalty programs are more than just a way to offer discounts—they are powerful data programs that drive business growth, increase revenue, and foster long-term customer loyalty. By integrating secure, compliant, and insightful scan data solutions into your retail operations, you can stay ahead of the competition and build a thriving, customer-focused business.
Install a POS system and start a sales data loyalty program now!
Install a digital POS station at your store and get your sales data loyalty program running in no time!
A POS terminal usually accepts cash, credit/debit cards, gift cards, and contactless payments (Apple Pay, Google Pay, and Samsung Pay).
This terminal by Clover can also be tracked by your smartphone, so you can keep an eye on sales while you’re away and a vendor is at the till.
You can even change pricing or store credit rewards from the comfort of your home!
With a high-end touch screen, you can make payments easier for your clients and your company now with a modern Clover POS terminal!
Clover also works as an employee management system, since you can use it for your staff to clock-in their working hours.
