Making Loyalty Smarter
National and International chain stores have spent millions in researching and developing sophisticated loyalty programs that keep customers engaged and feeling valued. Studies have shown and, its been reported that companies have been able to increase their profitability by as much as 80% just by a 5% increase in customer retention.
The fact is: local independent businesses, that are at the heart of the community, are very vulnerable to national and international chains and generally have little or no marketing budget to compete with the marketing initiatives of these bigger players.
Some enterprising small businesses have been using paper based stamp cards that do work initially, but, customers find themselves with too many of these cards to keep track of and don't often have the right card with them when they need it. It is also difficult for the customer to keep track of the expiry of these stamp cards.
Paper based systems are also ‘stand-alone’ meaning that businesses in a particular area cannot easily work together to engage more customers and increase footfall. Discount cards can be used at multiple shops but they just give away margin because there is no way of measuring and rewarding return shoppers, customers get a set discount whether it’s their first or tenth visit.