Reward programs have become so common that people almost expect companies to have them now. If your company has resisted starting a loyalty-type program, you’re missing out on a benefit that could make life a lot easier for you.

Passive Growth

People like rewards and gifts, and successful loyalty programs offer some sort of reward to customers who continue to use your services or products. That means that more people come back to your business so they can get more of the reward.

For example, many stores have programs where customers get a card stamped when they come in. Once the customer gets a certain number of stamps, there is a prize like a free product or a significant discount off a popular service. Not all of your customers will be interested, but you’ll find there’s a group who is fairly dedicated to getting that freebie or discount.

This increased customer retention acts as passive advertising. Not only do you have people coming back, but they may also introduce others to the business so that those people can get rewards as well. The result is more business with less advertising hassle.

Potential customers are often interested in reward programs, too. If people are on the fence about using your services, a reward program where they get a discount or receive special deals via email could convince them to sign up. If customers sense they would benefit financially by using your services, they’d be more likely to take a chance on you.

Practical Matters

When you do create a program, don’t ask for much personal information. The less intrusive your program is, the more people are likely to sign up. Ensure what you ask for is directly related to the benefits the person might receive. For example, don’t ask for a birthdate unless you offer birthday rewards or your services are age-restricted.

Try tying the program to something like mobile POS use for additional convenience. Credit card processing companies help you track purchases and automatically register use; this is much easier than forcing workers to stamp a card during busy hours. Plus, the customer doesn’t have to do anything to track progress toward a reward.

Get started on your loyalty program now. The advantages are too good to pass up, and with a card processor assisting you with record keeping, you may find your program quickly exceeds your expectations.