07.19.2010

Customer loyalty program basics - what you need to know

You’d like to grow your small business and we’re telling you that a loyalty program could help you do that. The only difficulty is that a loyalty program takes time and money. You don’t have much of either!

What you do have are loyal customers. These are the people who make your small business a success through repeat purchases, and who bring their friends in as new customers. Before you start a loyalty program, here are some things you need to know:

They take planning – A great loyalty program plays to the needs and desires of its participants. Be prepared to gather insights from friends, family and a core group of your loyal customers before launching a full-scale loyalty program.

Action Tip: Invite 10 of your most loyal customers out for a casual dinner and present them with your ideas for a loyalty program.

They don’t come cheaply – A successful customer loyalty program takes a lot of time and can be expensive. Be prepared to put real resources into your program.

Action Tip: Clearly define what you want your loyalty program to do for your business, what you consider a success and how you’ll track progress.

They take time to grow – Not every loyalty program will be an overnight success. As with any relationship, your customers may not respond immediately. Given time and your genuine commitment, you’ll enjoy the benefits of a connected small business.

Action Tip: Create a timeline for your loyalty program and stick to it. If you planned for a 12-month investment, stick with it.

If you want to tap into the creativity, passion and purchasing power of the people who enjoy what your small business has to offer, a loyalty program may turn out to be the best decision you’ve ever made.

— by Seth Simonds