Customer loyalty programs used to be extremely expensive for small business owners to operate – they simply couldn’t afford the advanced software, POS systems, and other infrastructure required to run effective loyalty programs.
However, modern technology has changed everything. There are now dozens of companies focusing on providing customer loyalty programs to small businesses, and more are appearing every year. Their costs are quite low, and easy-to-use software makes customer loyalty systems simple to integrate into your small business.
But what’s the best kind of customer loyalty program for your small business? We’ll break down the most basic types of customer rewards and loyalty programs, allowing you to get a better idea of which type may be appropriate for your small business.
Cash Back or Rebate Programs
These programs allow customers to earn a percentage of money back from previous purchases in a set period of time and gives them the opportunity to redeem this money or store credit after a set period of time.
The advantages of such as system are:
- Simple and easy for customers to understand
- Gift certificates and store credit drives customers back to your business
- Customers feel as if they’re “buying in” to your business, making them more likely to return
Some disadvantages include:
- Lack of “instant gratification”
- Can be expensive to implement
- Infrequent shoppers might not be drawn by this program
For the rest of the article, click here