Customer Loyalty Program For Small Businesses

Customer Loyalty Program For Small Businesses

February 27, 2019 Admin 0Comment

Keep your customers coming back on a regular basis

Customer retention is the key factor that helps a business grow. To drive engagement and impacting growth and stability for a business, various engagement activities are carried out by small businesses. Customer loyalty program offers a combination of free gifts, discounts, value added services, referrals for products redemptions customer loyalty program for small businesses .

With internet and technology handling the complete existence of your online business, it is important for business owners to maintain customer relationship programme to enable buyers to do repeat purchase.

Over the years, loyalty program has given a boost to profits for businesses. A successful loyalty programme ensures the life of existing customers and the brand sustains by using the method of rewarding existing customers. While a customer benefits with the rewards, the business too gains through high sales and strong brand loyalty.

Components of loyalty program

Components of Customer Loyalty Program for Small Businesses
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Incentivizing the customers to continue their relationship with your business. As you consider loyalty program for your ecommerce business, here are the components that make it an absolute success.


The first thing your customers wants to read is ‘what is in it for me?’ The offer should be good enough, so it convinces the clientele to join the program basis its benefits. Entice them to sign up immediately after coming across the offer.

Make a personal connect

Make them feel that they are more important than just a transaction to you. If they feel special, they are going to stick and will spread word or mouth to their family and friends. Randomly give bonuses to make them feel obliged.

Focus on giveaway, not revenue

Offer loyalty points with every purchase they make and let them redeem them with the sales. Match the rewards with your business concept.

Measure success

Enhance your business program and create a loyalty program that brings revenue along with loyalty. Utilize feedbacks and tailor your offers to a specific audience group.

Types of Customer Loyalty Programs

Creating a Small Business Customer Loyalty Program

Image source – Google

To help retain customers and grow your business quickly, you may consider a lot of options. Some of them are-

Point based

The most used and successful way of rewarding is giving them loyalty points after every purchase that they can use during their next purchase. These points can be converted during other and frequent purchase by the customer.

Loyalty card

Give them a card which they can use during the purchase and redeem the points from earlier purchase points. They participate. They win. You win

Gift cards

Ensure that the customer do business with you. Offer a gift card which they can gift to their friends and family and can use it to make purchase from your store. This will help increase the potential customer base for your business.


A game to reward. Using compelling engagement activity in form of a game and rewarding the winners that fulfils on the criteria mentioned. This ensures maximum engagements and is a simple game to interact with.

Give away items with multiple purchases

Buy two, get one is one of the most tried and tested method for repeat purchases. Do not repeat such offers very often as this might make the customers doubt your product quality.

Reward referrals

Encourage referrals for every new customer who your existing ones introduce you to with free gifts or discounts.

Measuring the Success of your Customer Loyalty Program

Redeem reward Gift
Image source – Google

Have a look at the metrics that can help you find results of your existing campaigns and providing avenues for improvising in your engagement strategies.

Repeat Purchase Rate (RPR)

This is a great way to measure your customer’s loyalty as this shows the repeat purchase by the same customer implying the trust that has increased in your business.

Even if your RPR rate is currently low, it tells that there is room for good strategy and area to target. You can initiate repeat purchases by offering incentives, engagement through email campaigns, simplifying shopping experience and giving personalized experience to customers to help them build trust and thus increasing repeat purchases.

Revenue per user

How much revenue you are making per-user affects the overall loyalty and business sustainability rate. By increasing selling price and transaction sizes by cross-sell, up-sell and volume selling, you can boost your business revenue per user.

Loyalty programs are usually to be continued for a long term. Consider your industry and the standards set by the competitors. Set goals that are realistic and bolster customer retention. Study the data that indicates success and give offers that brings up better ROI with updated strategies for your business success