Why Small Businesses should be Utilizing Customer-Loyalty Programs
The philosophy behind a customer loyalty program is simple: Repeat customers are rewarded and businesses increase sales. It's a basic but powerful strategy.
For instance, My Starbucks Rewards, the coffee giant's customer-retention program, significantly contributes to the company's record growth. Starbucks claims that the program played a key role in its 26 percent rise in profit and 11 percent jump in total revenue in 2013's second quarter fiscal results….
Shop Local Trend Presents New Opportunities for Small Business Owners
Most small local business owners already understand the importance of having a loyalty program for their business. Repeated studies have shown that a 5% increase in customer loyalty results in a 25%-95% increase in profits. This is due to the fact that a returning customer is 60%-70% more likely to make a purchase and spends 31% more money than an existing customer…
Canadian consumers demand a balanced experience of physical and digital retail offerings.
This year, Canadian consumers indicate the top two out of five characteristics that drive brand loyalty are reliability and loyalty programs, at 60 per cent and 52 per cent respectively. Globally, reliability also tops the list, however beyond that there’s nothing a majority of global consumers seek. For Canadian retailers selling goods to Canadians, loyalty programs are a clear area of opportunity. Cultivating an experience that welcomes consumers safely inside physical spaces, while ensuring digital shopping environments remain attractive, can be a challenge given the shifting behaviours in retail. Additionally, 46 per cent of Canadian shoppers also rank customer service as a top-five characteristic that enables loyalty. More than one in every two Canadians (52%) consider loyalty programs to be significant to their spending...