The value of loyalty programs in retail stores

No matter what industry of retail you're in, your company more than likely depends heavily on fostering a strong relationship with customers to keep your business thriving. One way to achieve this is to integrate a customer loyalty program into your business strategy. Loyalty programs are already built into upgraded POS software, making the implementation of this program easier than ever.

The 2015 Loyalty Report, which surveyed 10,000 consumers, revealed that shoppers are increasingly looking for customer loyalty programs at their favorite retail spaces. According to the report, 43 percent of customers surveyed indicated they were "very satisfied" with the loyalty program experience. This outcome is up from the previous year's result of 39 percent, demonstrating that loyalty programs are becoming more favorable with consumers. Additionally satisfaction with the enrollment processes are increasing, which can easily be made efficient with the help of an upgraded POS system.

Here are four ways your retail store can benefit from a customer loyalty program:

Increased number of repeat customers
Loyalty programs such as merchant gift cards give consumers a reason to return to your retail store. The more they spend with your store, they more they save. This is the type of deal consumers are looking for in today's market. By implementing a loyalty program, you give shoppers what they want, which will keep them coming back to your store and boost your number of repeat customers. 

Builds brand identity
According to the 2015 Loyalty Report, 37 percent of consumers felt that customer loyalty programs were trustworthy, which is a direct reflection of your retail store's values. Building a strong, successful identity is important for a retail store because buying a certain item or brand says something about the consumer, according to Forbes. Shoppers are constantly looking for something with which to identify, and great brands are easy to recognize, so supplying a positive image they can relate to is crucial. Providing a loyalty program in addition to exceptional customer service will help merchants achieve that positive image.

Boost your branding strategy by offering excellent customer service programs. Boost your branding strategy by offering excellent customer service programs.

Develop your reputation through word of mouth
The 2015 Loyalty Report also revealed that 34 percent of consumers would recommend a loyalty program to another individual. By implementing a customer loyalty program in your store, you effectively give something for your consumers to tell their friends about and expand your business's reach.

Personalizes the shopping experience
A loyalty program tracks the purchasing trends of your customers to determine the level of benefits they receive. This is a way for retail stores to personalize the shopping experience for patrons. By tailoring service to the individuals who walk through your doors, you can effectively give them what they're looking for in a brick-and-mortar store. In fact, according to Bob MacDonald, president and CEO of Bond Brand Loyalty, this element of the loyalty programs is crucial for retail success.

"It's more important than ever that companies focus on their best customers, and their data, to design a more personalized and authentic experience, which can help build stronger, more meaningful bonds with customers," said Macdonald.

Capitalize on the value of a loyalty program buy using an upgraded POS system in your retail store that gives you easy accessibility to this strategy.

Do you want to improve and expand your payment processing capabilities? Learn how First American Payment Systems can help.

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