Customer loyalty programs for small business

Customer loyalty programs for small business

Matt Crawford
By Matt Crawford
Oct 13, 2023
1 min read

Customer loyalty programs for small businesses can be a great tactic to convert one-time purchasers into happy and repeat customers.

To help you devise an effective customer loyalty program to boost your products and services, read on for examples and ideas to help your small business grow.

Jump ahead to learn:

What is a customer loyalty program?

Customer loyalty is a set of business practices that encourage a customer to consistently choose your company over the competition. Hook them with great value, great products and/or great service, and customers will feel invested in your brand for the long-term.

A loyal customer is delighted to pay for what they know and love. If they’ve done business with you and had a positive experience, they’ll come back again and be an advocate for your brand, products and services to others.

Customers are expensive to acquire (marketing costs, onboarding costs) and for almost any business, repeat customers contribute the most to business growth.

Loyal customers will:

  • Spend money with you repeatedly over time
  • Refer friends and family
  • Buy more during the holiday season
  • Support you during slow periods
  • Write positive reviews online

5 customer loyalty program examples

If you get to know your customers and make them feel special they’re more likely to stick around. Some tactics to help retain customer loyalty include:

  1. Offer better-than-average customer service. Hire people that genuinely show they care.
  2. Respond to social media posts. If a customer tags your product or someone using your service, express gratitude and acknowledgement. They want you to see them, too.
  3. Offer competitive pricing. Structure your customer costs to compete with or beat out other small business competition in your industry to help your cause.
  4. Incentivise frequent purchases. Programs like punch cards or point accrual that offer a free coffee after the tenth cup encourage your customers to come back often.
  5. Offer VIP benefits. Some customers will want the cache and convenience of paying monthly or yearly to unlock exclusive discounts or perks, such as free shipping, price reductions and the like.

Any time you throw a customer a little extra, you add value to your business. It sticks in your customer’s mind and makes them more likely to remember you when they need to buy again, make a recommendation to a friend or family member or give you props on social media.

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How to build a customer loyalty program

Make it easy for a customer to sign up for promotions by offering them value immediately. A 10% or 20% off coupon code can be the incentive to get them to share their email, phone or other contact information.

Send periodic notifications to entice interest. Create special sales, offers and events just for “members” or your marketing lists.

Keep in touch with your customers and make it personal. Wish them a happy birthday. Remember what they bought last year at this time, and offer a more up-to-date replacement at the same time every year.

How NEXT can help your small business build customer loyalty and trust

Get the business insurance you need to help your small business reach and retain customers.

Choose from general liability insurance, workers’ compensation insurance or commercial property insurance. Mix and match policies for your unique business needs.

Review your policy options, get a quote and purchase coverage — all in less than 10 minutes. Your certificate of insurance is available immediately after you pay your premium.

If you have questions, our licensed, U.S.-based insurance professionals are ready to help.

Get started with a free quote from NEXT.

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