How Loyalty Programs Increase Customer Visit Frequency

June 17, 2014 Sarah Reilly Engel

How Loyalty Programs Increase Customer Visit Frequncy

Loyalty programs increase both the value of your customer relationships and your revenue. A recent study by AC Nielsen shows that 60% of consumers consider loyalty programs an important factor in their buying decisions. And they spend 46% more with businesses that have loyalty programs on average.

But what makes loyalty programs tick, and how should you tie the program's value back to your bottom line?

You should design your loyalty program around powerful rewards and incentives that encourage frequent visits and increased spending.

Increasing visit frequency is just one reason customer loyalty matters.

Designing Incentives

Attractive incentives are the main driver for buying behaviors. Loyalty cards for small business, like the ones Belly provides are valuable because business owners are able to assign point values and create rewards that encourage customers to return again - and again!

Impact customer behavior by aligning point values with the number of visits. Design rewards to entice members to return to increase revenue.

By setting both attainable rewards and stretch goal rewards, you can motivate members to visit more often. By allowing quick wins, you’ll appease the instantly gratified customer. By offering greater value rewards that require more visits, you’ll capture the attention of your most dedicated guests.

Your program will be successful if you plan around what your customer wants and understand the monetary value of each reward. Loyalty is not about giving away free items all the time; it is about encouraging incremental spend! Rewards should engage and entice members, while being mindful of setting workable limits for your business to maintain the cost of items rewarded.

TIP: Ask yourself questions such as:

  • What do our customers want?
  • How can we use our rewards program to entice members to try new things?
  • How can we use both points an frequency to drive buying behaviors?

Increasing Visit Frequency

Increasing visit frequency should be the core of every loyalty program. Frequency translates to your members visiting more, and increasing their spend over time. Research shows that members not only spend more when they visit, they also visit about 20% more often than non-members.

For example, Mario’s Pizzeria in Westbury, NY has decreased time between visits from 18 days to 12.7 days, driving an additional 9 visits per year for Belly Members. 

By designing incentives that are compelling to your customers, they will visit more and buy more. The most impactful way to motivate customer decisions is to understand what they want, and to stay in touch.

The value of Belly begins when you start getting your customers on-board your loyalty program. This should start the first time they walk into your store. It’s important to design programs that add value to each customer, and keep them engaged over their lifetime. It costs 6 – 7 times more to acquire a new customer than to keep an existing one, so engagement is key.

By leveraging tools like Belly’s Command Center for insights and Campaigns for email, you can learn your customer’s buying behavior (such as ‘last visit’) and design effective email marketing campaigns that target them with relevant offers. Drive them back to your store, in less time!

Use incentives and time-based promotions to drive more frequent visits and measurable incremental purchases. This is the best combo, and the most effective way to bring your customers back!

TIP: When you are experiencing a slow period, set up a campaign and target customers who have not returned in awhile. Say, 30-60-90 days. Entice them with an offer and watch your customer relationships grow.

According to The Loyalty Effect, a 5% increase in customer retention can increase profits by 25 to 100%. What are you waiting for?

Want to learn more about increasing customer visit frequency by implementing a loyalty program? Browse our customer loyalty section!

Ready to see Belly in actionRequest a demo.

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