Personal service is one of the top reasons consumers cite for supporting small businesses.[1] In a perfect world, every employee of a small business would be able to remember details regarding every regular customer. In reality, that’s not always possible. That’s where digital loyalty programs come in. They let you keep track of customer information and help you retain customers with incentives and rewards.
“In our experience with a digital offers platform, customers are much more receptive and engaged with offers and deals that closely mirror their unique shopping tastes,” said Arvind Ronta, Director of Commerce, Security, & Data Products at Discover. “We look to tailor offers to our Discover cardmembers based on their preferences and behaviors, which we believe helps to drive increased engagement and loyalty, as well as helping our partner businesses reach these customers with customized marketing.”
And these solutions aren’t just for big box retailers. A number of startups are currently delivering excellent turnkey systems at prices that are affordable to small business.
Keep Them Coming Back for More
A study from BIA/Kelsey looked at nearly 1,000 small businesses and found that returning customers spent an average of 67 percent more than new customers.[2] While it may seem counterintuitive to turn to a digital solution to provide a personalized experience, these customer loyalty startups give you the tools to strengthen your customer relationships.
For example, one company, FiveStars, helps equip businesses with in-store beacons to register customers that have opted-in as they enter the store, and customers can also check-in directly using the FiveStars app. This technology allows for a much more natural flow of personal service — employees are able to identify users as they enter the store and can be ready with suggestions or aware of preferences before any interaction has taken place. The goal is for the digital solution to simply recreate the same personal touch that the small business already offered, but in a more effective way than relying on memory alone.
Keep it Local
One of the concerns in turning to a digital solution for customer contact is losing that small business feel or identity. Some companies help to assuage this concern and can help businesses build customized programs. For example, in the food and restaurant space, be it through GrubHub, OpenTable (which enables mobile payments, as well), Punchcard, Swipely, and others, owners can tailor programs to the goals they’re trying to achieve.
Through these services, you can set your own customizable rewards, be that a free muffin on every 10th visit or more experiential rewards like designing a tiered cake with the head baker. These frequent discounts or unique experiences serve to keep customers coming through the door and building an affinity toward your store.
Knowledge is power
Loyalty programs provide the information you need to give your customers personalized service in a structured and manageable way. These digital solutions enhance the customer experience without sacrificing any of what made your business great. It’s the perfect scenario: Your customers walk away feeling appreciated, while your business gets a deeper understanding of what they want and need.
This article was brought to you by Discover Network. For more insights into consumer trends and the world of payments, visit Discover Network Perspectives.
[1] AYTM, April 8, 2015, “Small Business Survey: Consumers Appreciate Economic Impact of Buying Local”
[2] BIA Kelsey, April 2, 2014, Small Business Owners Shift Investment from Customer Acquisition to Customer Engagement”
