The success of any retail business depends on a customer loyalty program. The best customer loyalty program in the retail industry will be based on the activities of the customer. For example, a customer loyalty program in a fashion store will be different from one in a computer hardware store. Here are some factors to consider when implementing a customer loyalty program in the retail industry.
* Identify the customer segment: If you are targeting a particular segment of customers, identify them. This helps in the identification of target markets with similar characteristics and tastes. These can be divided into groups according to age, gender, social status, occupational profile etc. This helps you in determining the kind of programs to be launched.
* Develop customer relationship programs: A customer loyalty program is an expression of the company’s commitment to its customers. You can reward customers for their loyalty by way of discount coupons, free gifts, or discounts on selected services or products. These are all possible means of increasing customer retention. The reward should be given without expecting something in return.
* Understand the customers: To develop a customer loyalty program, understand the customer base. This includes analyzing the types of customers, the reasons for shopping, purchasing decisions etc. Develop a personalized scheme that targets the needs of the customer. For example, a clothing store may give discounts to regular customers who purchase same size clothes every single month. On the other hand, a computer hardware store can offer such a discount to customers who purchase server units.
* Develop a reward system: Many customers prefer to shop with loyalty cards as they are considered to be plastic-based rewards. Also, loyalty cards are widely accepted in many countries. The rewards offered in employee incentive schemes may include freebies, reduced operating costs, and even cash bonuses. With the help of a customer loyalty program in the retail industry, a company gets to reward its employees for customer loyalty and referrals. Employees feel special if they are awarded with such rewards.
* Emphasize the value of a customer loyalty program in the retail industry: Since customers value a product they buy and use more, it is in the best interest of a company to promote such a program. Customers will also be pleased to hear that they will receive discounts or freebies with the purchase of a product. When a customer has a loyalty card, he/she can use it again. Therefore, the customer is not likely to turn away from a company he/she uses once.
* Emphasize customer loyalty and discounts: Discounts on purchases and freebies are great ways to attract customers. This strategy is effective not only in increasing customer loyalty but also improving the bottom line. Some companies give discounts to customers who buy at least a certain number of items from a single point. The more shoppers you have in your store, the more likely you are to make a profit. In other words, the more customers you have, the more discounts you can offer. Some companies provide a loyalty card with a discount coupon for every five pieces of jewelry purchased while others provide a discount coupon for every purchase made in their retail shop.
* Create a customer loyalty program in the retail industry: It is important that you create a customer loyalty program in retail to maintain good relationships with your customers. Loyalty to a company will help you in building a long term clientele. Apart from this, it will also increase the recall value of your product. This will result in more sales. You will surely get a return on investment (ROI) from such a customer loyalty program.