Show me you love me

For the businesses who think they are too small, if you have even 1 customer (congratulations, by the way) you can start with them. In fact, starting with a relatively small sample is an ideal place to begin since it's manageable and the quality of the conversations may reveal insights about something you did (or something you have) at this early stage of your business that resonated so much that your customer(s) were willing to pay you for your product. Wouldn’t you want to learn what you did so that you can repeat (and refine) your processes to get the second, third and fourth customer? 

For the businesses who think they are too big, so unique and such badasses that they don’t need to innovate or consider their customers changing needs? We say, Blockbuster, meet Netflix. 

With a little organization, some data and creative thinking, you can build out a customer loyalty program that keeps your clients interested, singing your praises and coming back for more of that special sauce that only you have. Doesn’t that sound great?

There are many types of customer loyalty programs you can choose to run, but as a general rule, you want to make sure that they are easy to understand, maintain and deliver on. 

Let’s consider a few types:  

1. Points programs: allow your customers to accumulate “points” that they earn based on their activity with you. Points can be redeemed for discounts, product exclusives or even free products. Good examples of this type of program are frequent flyer programs offered by airlines or Kohl’s Cash, offered by Kohl’s. 
2. Paid programs: this is a type of program that requires customers to pay a fee up front, for access to a variety of perks. A perfect example is Amazon Prime, offered by Amazon. By paying a monthly fee, subscribers receive a variety of “included” perks such as free shipping, access to Amazon’s video and music streaming services, access to product exclusives, and the list goes on and on. As of 2017, Amazon Prime disclosed that it had more than 100 million subscribers. (Amazon is also a bad example, since a typical business does not have the leverage of an Amazon or access to the tech required to execute a program as robust as Amazon’s but paid programs can come in many, smaller forms. Think Harry’s Core program or CVS’s CarePass for variations of the same concept.   
3. Punch Card programs: these are great, particularly for small businesses who are looking to create a program that is simple to deliver on. Customers are rewarded for a purchase and receive 1 “punch,” per purchase. The punch is usually tracked on a paper stock card or other simple tracking system. After customers hit a certain number of punches, they receive a product, free of charge. We’ve all seen these, right? “Buy 3 and your fourth one is free!” is a typical call to action. A local (and delicious) example of a punch card program is the one offered by Pesso’s Ices & Ice Cream Parlor in good ol’ Queens, NY.   

We are just scratching the surface on the value and strategy of customer loyalty programs, but when done correctly, you and your clients can reap the benefits of an ongoing business relationship that is built to last.

Thinking about a loyalty strategy for your customers? We’d love to hear from you.