Loyalty programs are powerful ways to drive business – and they aren’t just for large companies. Businesses of any size can use them to stand out from the competition by adding value for customers.
That’s what Patricia Whitney, a partner in Xpression, a hair salon in Whitby, Ont., discovered when she launched a loyalty program with Moneris1. She chose the memorable name “Hair Miles.”
Customers fill out a form to enroll, and their information is stored safely and securely on the web portal Xpression uses to manage the program. Customers receive a branded loyalty card and start earning one point for every dollar they spend. At 105 points, they get a $5 coupon.
“Hair Miles” has proven to be a winner for Whitney. The program is attracting new customers, increasing loyalty and boosting word-of-mouth referrals. The salon creates marketing opportunities using the customer information collected on enrolment forms for holiday email campaigns, special birthday messages, and bonus points for referrals and buying certain products. The salon monitors results to see what works best.
“Everyone loves the program,” says Whitney. “It has significant benefits for the business, and it’s a great way for us to say thank you to our clients.”
Research shows that loyalty-program members visit a merchant twice as often – and spend four times as much – as customers who aren’t members2. Higher customer retention means greater profits by as much as 25 to 100 per cent3.
Moneris makes it easy for you to start your own loyalty program. As a merchant, you can decide the points earning rate, how points are redeemed, and whether or not they expire. Loyalty programs also help you gain insight into your customer base.
A loyalty program can be a fun and easy way to give customers added incentive to return to your business—and it could give you the competitive edge that you’ve been looking for, especially as the busy holiday season approaches.
1 - Based on a Moneris merchant case study conducted with Xpression Hair Salon by Small Business Expert Roger Pierce, www.Bizlaunch.com, 2011.
2 - The Billion Member March: The 2011 COLLOQUY Loyalty Census” by COLLOQUY, 201.
3 - “The Wise Marketer & The Loyalty Guide” by Peter Clark, 2010.
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