All businesses should consider a customer loyalty programme

The concept is simple - repeat customers are rewarded and businesses increase sales – and they can create impressive results. Starbucks claimed that their customer loyalty programme helped deliver a 26 percent rise in profit and 11 percent jump in total revenue

Whether to continually increase profits or to supercharge a sales line, customer-loyalty programmes are a key element of many of the leading companies strategies – and should be for SME’s too - research by BIA/Kelsey reported that of those small businesses:

·     2/3rds who had launched a loyalty programme had seen a return on investment

·     61 percent reported over half of their sales comes from repeat customers

·     Repeat customers spends 67 percent more than a new customer. 

·     Only 14 percent are spending the majority of their annual marketing budget to acquire new customers

·     Just 20 percent are investing most of their time and effort to acquire new customers. 

 By providing loyalty programmes for existing customers, businesses don’t just say thank you but are encouraging them to continue to spread the word about your business to their professional, personal and social networks.

 You may feel you don’t stand a chance against the big corporate schemes but remember this is for your customers and like minded people who enjoy your unique and personalised customer experience so you are already way ahead. Customer loyalty doesn't cost a fortune. In today’s digital era, low cost digital rewards programmes are available for a low cost or even free to manage.

In summary, customer-loyalty programmes are not just for multi nationals. They can provide many benefits for small businesses whether working with other businesses or to consumers, including increasing sales, helping them stand out and developing a stronger relationship with their customers -- and technology is making it easier and cheaper than ever before to launch one.