Customer loyalty: what have you done for your best customers lately?

One important piece of any retailer’s strategy is how best to hold onto, and grow the relationship with, your repeat customers. Repeat customers can be the lifeblood of a successful business because: 1) your best customers tend to outspend a regular customer by a $16:1 ratio, and 2) 67% of customers stop shopping at a location because of perceived indifference.
A good loyalty program can encourage your customers to buy more, shop more often, and build their loyalty to the store (creating “sticky” customers), all while you as the retailer continue to build your customer database. Plus, the loyalty program doesn’t have to be overly complicated.
Here’s one example of how a loyalty program could work: after six sales, 10% of the total sales goes back to the customer as a store credit. So if a customer spends $165.27 over the course of six sales then after the sixth sale the customer has a store credit to spend of $16.53. Easy, no?
The loyalty “card” itself doesn’t have to be especially elaborate: an index card marked with six boxes to record sales is all you need. The cards are kept at the front counter and the sales are recorded at checkout. Google “customer loyalty card” for examples to get the creative juices flowing.
If you’re considering adding this program, or tweaking an existing program, there are some things to keep in mind:
Redemption is addictive Anyone who has and keeps the “buy 10 get one free” coffee sleeve can attest to the feeling of accomplishment after that tenth punch, and the desire to start a new card. Redemption through this loyalty program is the same way.
If launching the program, do so with a bang Consider adding a $100 purchase box after the first purchase so customers can get to redemption quicker. If $100 is a bit steep considering average sales or pricing on your merchandise then make it $50. Either way, your either investing $5 or $10 into strengthening the relationship with your best (or soon to be best) customers. It’s money well-spent.
Incentivizing the program is only limited by your creativity (or ability to rip off and duplicate) One store with a customer loyalty program offers a special deal for its frequent shoppers. Customers that fill out and redeem three cards receive a shopping bag. Customers can then use that bag on special days for 20% off everything that fits in the bag. The bag is branded to the store, it’s sharp, and the only way to get a bag is to complete three loyalty cards. While the customer feels like they’re getting a great shopping incentive (and they are) the store owner has 18 sales and a customer invested heavily into maintaining and strengthening the retailer-customer relationship (ie, continuing to spend, and spend more).
Use the program to promote your store and get customers through the door Offering incentives such double dollar days, double box days, referrals, and out of town guests, markets your store, building your customer base while strengthening the relationship with your best customers.
Depending on your customer cycle, tweak your box count A coffee shop with repeat customers on a daily basis may have a ten-box card before redemption, while a furniture store may have a card with only three boxes before redemption. The key is to make redemption attainable. A loyalty program few can take advantage of because redemption is nearly unattainable is a waste of your time and your customers’ time.
Do you have, or participate in a customer loyalty program that works especially well for your store? Tell us about it in the comments below.