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Loyalty Tips Tips for Coffee Shop Owners

How to Choose Your Rewards for your Loyalty Program

Setting Up A Rewards Program- Selecting Rewards

Are you ready to introduce a loyalty program to your business? An exciting and tempting loyalty program will help to keep customers coming through your doors again and again whilst encouraging them to spend more. They feel valued and rewarded and your business performance sky rockets. It’s a win for both sides!

Think about your customers….but don’t forget your margins

Customers are at the heart of what we all do, it’s important to think about them when designing your rewards program, but by thinking creatively it’s possible to design a program that’s both enticing for them and beneficial for your business.

A successful loyalty program is more than just offering discounts and free items, it’s important to think about what perks your customers want and get excited about but not losing sight of what you can afford to offer.

Different Reward Types Work Best For Different Businesses…..

It’s important to remember that what works for salon and what works for an electronics store will be two very different things. Nobody wants to buy four laptops to get one free, but a store credit based system would keep those customers coming back for all of their gadget based requirements! Here are some examples of the most popular reward types and the businesses that they work best for:

  • Percentage discounts or store credits will always go down a treat. Shoppers will have the freedom to use these against the items that they want to buy and it is easy for you to consider what you are happy to offer in exchange for their repeat custom. If you sell items with very different profit margins discounts may not be the best solution for you, not all dollars are created equal.
  • Free items or services also help to get customers excited! In a café for example or a service based industry, offering a free item or service can be a much better way to show your customers love whilst taking care of your bottom line.
  • Another type of reward that is gaining in popularity amongst shoppers is the experience reward. These are rewards that money can’t buy! It’s also a way to create true brand loyalty, an example would be a pizza restaurant putting on a pizza making class for their best customers. This can give these customers with a new appreciation for what you do and strengthen their excitement for your business and team!

By Katelyn Fletcher