A high customer retention rate is important for businesses of all sizes, but particularly for small businesses. Not only is it less expensive to retain current customers than it is to attract new ones, but repeat customers mean repeat business, which translates to greater success.
How can you ensure that your current customers will continue doing business with you? By establishing a loyalty program and making use of coupons!
What is a customer loyalty program?
Essentially, a loyalty program encourages customers to continue doing business with companies the frequent. These programs do this by offering incentives that basically persuade shoppers to continue shopping with a business. There are several incentives that can be offered through a customer loyalty program, but perhaps the most effective are coupons.
The benefits of using coupons for customer loyalty
Coupons can offer consumers a variety of things, such as discounts, free items, or even early access to new products. Customers view them as kind of a gift of sorts, which is why coupons are such a great tool for a loyalty program. Think about it: if a store offers you a coupon on your next visit, you’re probably going to pay them another visit, right? Most consumers have the same mindset.
Types of coupons to offer
There are several types of coupons you can offer through a customer loyalty program. Some excellent options include:
- Discounts on selected items. You can offer a coupon that will give your customers a discount when the purchase a particular item.
- Discounts on specific dates or at specific times. Your coupon might provide a certain percentage off an item or a total sale when customers shop at certain times or on a particular date; for example, if you own a restaurant, your coupon might offer 10% off the total meal when customers dine on a day of the week or a time that is usually slow.
- Discounts once a certain amount has been spent. For instance, you might offer a coupon that offers 15% off or a flat amount, such as $10 off, purchases that are $75 or more.
- By a certain amount of items and get one free. For example, when customers purchase four items they can get one additional item for free when they present the coupon.
- Catalina coupons, also referred to as checkout coupons, can be offered for the next order once the first order has been completed.
There are so many different types of coupons available that would work well with a customer loyalty program. Think about your business, your customers, and your goals and choose an option that would best need everyone’s needs. If the above-mentioned options don’t work, you can create your own coupon.
How to deliver coupons to customers
So, how do you deliver your coupons to your customers? There are a myriad of options, but here’s a look at some effective delivery methods that you might consider:
- Via direct mail. Send your coupons out to your customers through the mail. When they receive them, they can redeem the next time they visit your business.
- At the completion of a purchase. Once a customer has paid, you can offer a coupon. It can be attached to a receipt, or you can hand out separate coupons.
- Through email. If you don’t already have one, build an email list and send coupons out to your customers.
- On social media. For instance, you could post a coupon on Facebook that customers can either print out and present when they shop, or they can simply show you the coupon right on their mobile device.
Coupons are an excellent and easy way to build a loyal customer base and improve the success of your business.
