If you own a small business, you know the challenges of generating revenue and competing with larger chain establishments. Luckily, you can increase sales and lock in repeat customers with loyalty programs for small businesses.
Many successful retailers offer loyalty programs with reward cards that allow customers to gain incentives from their purchases. These cards offer many advantages to help local businesses thrive.
How Do Loyalty Programs Benefit Companies?
Loyalty programs for small retailers can mean the difference between a slow-moving business and a booming operation. These programs serve as excellent investments for local establishments and can be exciting features for existing and future customers to enjoy.
Here are a few of the many advantages of loyalty cards for businesses.
Promote Customer Spending
When customers use reward cards, they tend to spend more money at stores than they normally would. Cardholders can also only use your business’s reward cards at your store, enabling you to control customer spending. These cards engage shoppers by offering benefits that encourage spending, giving shoppers a reason to buy more products from your business.
For example, if you own a clothing store, your loyalty program may incentivize spending by rewarding customers with $10 off their next purchase with every $100 they spend at your store. This perk encourages shoppers to spend more money to reach their next reward.
Loyalty cards offer excellent customer benefits that make for a more positive shopping experience. When loyal customers are happy with their experience at a small business, they become more likely to spread the word to their friends and family. Word-of-mouth marketing goes a long way and can significantly increase your visibility as a business and draw new customers.
Boost Customer Retention
One of the main functions of reward cards is encouraging customers to keep coming back to your store. When you give current customers the motivation to revisit your business, they’re more likely to continue spending money there in the future — ultimately boosting your revenue. Repeat customers spend 67% more than new customers, making them valuable contributors to your business.
Compete With Larger Companies
It can be challenging for small businesses to compete with large rival companies that have various locations, resources, and marketing materials. However, this doesn’t mean they can’t rise above the competition. Customer loyalty programs for small retailers allow businesses to show their personal side and remain competitive in the industry.
Local retailers usually have higher quality products than big businesses but are sometimes more expensive. However, implementing a rewards program can sway consumers into choosing your products over larger brands.
Though many big businesses invest a large amount of money into their loyalty programs, small businesses can achieve the same results without breaking the bank through mobile reward cards. Digital loyalty programs are more cost-effective than physical cards. They act as reloadable gift cards for your store, offering a more convenient way for consumers to shop. These mobile rewards are great for decreasing company costs and increasing customer spending.
Issue Reward Cards for Your Small Business
You can take advantage of loyalty programs for small businesses with Hydrogen reward cards. Our virtual and physical cards offer fraud protection, privacy features, and many additional benefits that can draw customers to your business. We make building card-issuing apps easier than ever with our powerful Hydrogen Cards offering.
Sign up to issue your loyalty cards through Hydrogen today.