Effective Customer Loyalty Programs That Secure Return Business

June 30, 2012 by  Filed under: Sales 

Competition is high in every sector of business, especially hospitality and retail, so creating that sense of loyalty with customers and encouraging them to give you their return business is crucial to surviving. While sales and advertising might be a great way to attract attention for a day, the majority of customers are likely to head somewhere else afterward in their quest for lower prices. Keeping them interested in your business takes a lot of work, but one method guaranteed to keep them coming back is an effective customer loyalty program.

How do loyalty programs work?

While a sale might generate a lot of short-term interest in your product or brand, the hype tends to quickly fade as soon as its all over; it’s definitely not cost effective to slash prices every time you want a attract attention.

By creating an additional sense of value in your brand or company, customer loyalty programs work to generate interest in more than just the products that you sell. By rewarding commitment to your store, restaurant, cafe or business, you’ll ensure that customers go out of their way to spend with you over your competitors.

Types of loyalty programs

There are a number of different basic loyalty programs that you can customise and use to suit any business model. Take a look at a few of these for some ideas.

Stamp cards are the perfect way for small coffee shops and restaurants to encourage customers to drink or dine again. Offer something simple like a free coffee or meal after their 6th or 7th purchase – try to hit a balance of being easy to achieve while not detrimental to your earnings.

Loyalty cards and electronic points schemes have been one of the most popular ways to encourage return business in the past decade. People love seeing their ‘points’ rack up as they purchase and finally spending them on a good reward is extremely satisfying. Loyalty card programs are better suited to larger stores or hospitality chains that can be frequented often.

Rebates and discounts encourage customers to spend more and to spend with you when they’re thinking about a large purchase. You’ll see more group bookings in hotels and restaurants and customers will think fondly of their last saving with you next time they’re looking to buy. Other accommodation providers such as holiday parks offer member discount cards where guests can stay at a choice of accommodation and receive a percentage discount off their stay.

Use sales and advertising to generate initial contact and keep them coming back by implementing one of these strategies. An effective loyalty program is the perfect way to see more return business from customers and one of the best marketing tools you can employ.

Kiwi Holiday Parks offer great value and a huge variety of accommodation options at more than 50 locations in New Zealand.

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