Why You Need a Loyalty Plan
It’s safe to say in the Alcohol Beverage Industry there’s a lot of competition…and I mean A LOT. With numerous boutiques to larger liquor chains and franchises, what is it that makes the consumers keep coming back to you? Two words: loyalty programs.
Now if you’ve been in the retail business long enough, you know this isn’t as simple as it sounds. Sure, making a loyalty plan your customers will like may be the easier part. But maintaining those loyal relationships with your customers is like dating in your 40’s: hard. So a good start is creating a loyalty program that provides value to your customers. After all, it’s the returning and loyal customers who make it possible for your shop to continuously make sales, expand, and grow.
According to Invesp, 69% of consumers say choice of retailer is influenced by where they can earn customer loyalty/rewards program points. Just an increase in customer loyalty by 5% can lead to a 25%-100% increase in profit per customer. So if you’re on the hunt for a long-term strategy to increase customer retention, it’s time you set up a loyalty program. 83% of customer’s state loyalty programs can influence their buying decision. So what’s stopping you? The effort it might take? Please, that didn’t stop Tom Hanks in Sleepless in Seattle and shouldn’t stop you either.
Luckily with City Hive, you can take your loyalty program from in-store, to online and mobile. Our system easily allows you to develop your own or add an existing rewards program to your app or website. Loyalty programs are a great addition to your digital store since they’ll help you develop a brand image that will feel more like a community and less like a corporation who’s only after one thing: your money.
A great example many alcohol retailers are adopting is offering store credit. Once your customer makes a purchase, they will receive a percentage of their purchase back in credit which can be used towards future purchases. It’s a win-win! Not only will your customers be more inclined to choosing your store in the future, but they will likely make repeat visits allowing you to stay profitable and keep your business growing.
My good friend Pareto once said 80% of your sales come from only 20% of your customers. This means you must nurture these relationships with your customers. They have a higher lifetime value, meaning that over the course of a customer’s projected buying time with your business, you can predict a higher return on investment. Loyalty programs can help this by increasing the number of repeat customers and repeat purchases. But by how much you ask? Well, that’s no longer a guessing game! City Hive has been running loyalty plans for hundreds of retailers and have seen a 30% increase in odds of purchase each week after introducing a loyalty plan. Also, we’ve noticed the average customer’s yearly value has grown up to 5X after the implementation of a loyalty program.
Whether you also want to include promotions that will offer double, or if you’re feeling it, triple the loyalty points, City Hive can easily help you execute it with a click of a button. We’re here to help you build the digital experience your customers want in an easy-to-use fashion for both you and the customer.
Have a loyalty plan that’s been working for you? Let us know in the comment section below!