As a consumer, you probably belong to at least one customer loyalty program. Whether it's a grocery store shopper's club, a retail coupon mailing list, or a sandwich shop punch card, loyalty programs have long been a part of the customer retention strategy for large brands. Now, local small businesses are increasingly adopting similar programs to keep their customers coming back. As consumers get more and better information regarding how to compare various products and companies, it is critical to compete on price and value. Loyalty programs provide an opportunity to learn the preferences of customers and design communication strategies that will resonate with them.

The key word here is experience: The most effective programs create loyalty-building experiences that precede the shopping visit and extend far beyond the point that the customer leaves their store. The Internet and mobile technology have enabled continuous customer engagement, which allows a business to become a greater part of its customers' everyday lives. The ability to strengthen these customer relationships is what makes loyalty programs such an attractive retention tactic for businesses. If you're considering a loyalty program for your small business, here are a three high- and low-tech options for implementing one.

Rewards and discount programs
Arguably one of the most popular types of loyalty initiatives, an in-store rewards program generally offers a coupon, free item or other incentive to customers who have earned a certain number of points by shopping there. In today's business world, everyone is offering something, so it's important to keep your prize within reach of the consumer. For retail businesses with a lot of varied inventory items, a supermarket-style club card that allows for discounts on select products is another way to keep customers satisfied.

Direct mailers
For a simple, low-tech loyalty program, direct mailer coupons can be a great way to get local consumers into your store. However, for the program to succeed, you need to make sure you have a strategic, personalized mailing system, for example: welcoming someone to the neighborhood, wishing a happy birthday, or noticing that it's been a while between visits are all great examples of personalized direct mail programs.

Try to focus on reaching customers during times or events that pertain exclusively to that individual. This form of advertising makes a customer feel special while subconsciously building loyalty to the brand.

As with any loyalty program, measuring your mail campaign results and keeping meticulous customer data records will help you ensure that the program is working. Highly recommended using social media, mobile devices and location-based tools in conjunction with direct mailers to gather consumer information, analyze trends, and further build up relationships with customers.

Card-linked offers
Credit card technology has become more and more sophisticated in recent years, and the number of different ways to use them as a customer loyalty tool has subsequently increased. One method that's growing in popularity is card-linked offers, where customers earn discounts and coupons by using a registered credit card. With the right tools, this type of program can be one of the most measurable, effective ways to entice customers, especially as an e-commerce business with online advertisements. Card-linked offers are a much more convenient way to offer discounts, which is really powerful from a merchant perspective. You can personalize your offers for consumers based on their spending and websites they've visited in the past.

Whichever type of loyalty program you decide to implement, make sure you've done your research and really know what your customers are looking for. The path to loyalty-building begins with customer knowledge. Establish a means for identifying your customers at the point of sale. That provides a way for you to understand your customers, to learn what makes them unique and what motivates their behavior. And never hesitate to ask a professional’s help in that matter! You can then leverage that wealth of information to personalize your interactions and demonstrate that you value their business.

Sources:
Business news daily