Small business owners understand that new technology and new consumer behaviors are quickly changing the face of how business is done. Modern customers expect instant access to products and services in addition to a variety of acceptable payment options. Especially in small-scale shops, business transactions are often conducted via smartphones, which even operate as point-of-sales systems. For small businesses, accommodating customers and providing positive buying experiences should be the biggest priority. Online and digital customer loyalty programs can provide opportunities for merchants with no existing programs in place, or for those looking to gain an edge to appeal to customers.
Merchants with no existing loyalty program
McDonald’s Monopoly program is a classic example of a business rewards program that exemplified the concept of gamification, where customers gain small entertainment value and have additional motivation to become repeat customers. Loyalty programs are not just for the big players, however. Thousands of businesses rely on more simplistic versions of the gamification or rewards concept by issuing stamp or punch cards where customers can earn a free meal or item after a certain number of previous purchases. While these programs can be effective, the 21st century allows merchants to truly stand out in customer’s eyes by going above and beyond traditional methods.
Merchants with existing analog loyalty program
Loyalty programs offer a strong incentive for existing customers to retain their business, and the marketplace is moving to digital. PNC Financial Services Group estimates that there are currently 96.6 million online coupon users in the U.S. alone. These trends are taking place outside America too, especially in countries such as India where over 500 million unconnected individuals will join the internet over the next five years, according to Payments Leader.
As businesses across the world are shifting toward providing instant gratification, a smart choice for business owners is to offer loyalty benefits to existing customers and provide incentives for new customers. Coupons, gift cards, and walk-in discounts easily accessible via mobile technologies can create a competitive advantage for any entrepreneur or merchant looking to modernize an existing loyalty program and upgrade from analog to digital.
Merchants with existing digital loyalty program
Personalization is one major area of strength offered by digital rewards and loyalty programs. Modern consumers have wide ranging personal preferences, especially regarding shopping habits. From QR code payments to credit to mobile money accounts, today’s customers love to have several different options to pay for goods. It has become a difficult but worthwhile task for merchants to be able to accommodate the needs of all customers.
One of the major benefits of implementing a loyalty program is a strong marketing return on investment (ROI). Attracting new customers or clients is several times more expensive than retaining existing customers, although digital rewards can incentivize both types of customers. The small costs of running loyalty programs and offering promotions such as gift cards can thus be understood as a big investment in the long-term satisfaction of customers and overall success of a business. Fama Cash is one leading loyalty program provider that presents a strong opportunity for businesses to stay relevant in the digital age, especially for merchants who have a digital program but would like to leverage new capabilities.
Digital Loyalty Programs for Merchants
Digital loyalty programs present an opportunity for the 21st century business owner to revolutionize customer interactions. Learn more about the benefits and other considerations that a merchant should think about while introducing online or mobile rewards programs.
digital loyalty program