Customer loyalty: Why you should use loyalty programs
The pandemic has brought numerous challenges for store and restaurant owners. One area that has been particularly impacted is customer loyalty, according to a study by McKinsey. The pandemic has influenced our purchasing behaviour, making us more inclined to try new brands and shop at unfamiliar stores. As consumers, we now have access to an overwhelming variety of brands and products, and with so many choices, it can be difficult to ensure that a customer returns to your specific store or restaurant. However, there is no doubt about the importance of repeat customers for any business. That’s why now is the time to focus on strengthening customer loyalty, and there are many opportunities to do so.
Why is customer loyalty important?
Studies show that previous customers are nine times more likely to purchase from you than new customers, so why not take advantage of the opportunity to bring them back? Returning customers can have a significant impact on your revenue - existing customers, on average, spend 31% more than new ones. This means you can gain immense value from your customers when you succeed in bringing them back repeatedly. The stronger the loyalty between you and your customers, the stronger the foundation for your business and its growth.
Returning customers spend 31% more than new ones.
Who is customer loyalty relevant for?
Customer loyalty is fundamentally important for all types of businesses. We have found that customers within retail - everything from home goods stores to clothing stores - as well as those in food and beverage, such as cafés, bakeries, restaurants, and bars, show significant interest in working with customer loyalty programs and have great success with them. So how can you embrace this trend and actively work, as a shop or restaurant owner, to strengthen your customer loyalty?
A good shopping experience
For a customer to want to return, it is essential that they have had a positive shopping experience, meaning they should feel happy and satisfied when leaving your shop or restaurant. We’ve compiled a list of tips to help you optimize your customers’ shopping experience.
1. Provide the best customer service
One of the things we especially remember as customers is when we’ve received extraordinary customer service - an experience that makes us happy and eager to return to the same place again. Make sure to be available when customers need help, and do your best to advise and guide them so they feel in good hands. This will leave a positive impression and significantly increase the likelihood of them returning. In fact, a study by HubSpot shows that 93% of consumers are more likely to return when a company delivers excellent customer service.
93% of consumers are more likely to return to a business that delivers excellent customer service.
2. Convenience is key
It should be easy and straightforward to be a customer. If you run a store, it should be simple for your customers to navigate and find the items they’re looking for. Checkout should be quick, and payment should be hassle-free. A digital checkout system can be an excellent solution, as it allows you to enter items and process payments faster compared to a manual system, which is much more time-consuming. If you own a restaurant or café, it’s crucial to have a clear menu and provide options for quick ordering and payment.
We’ve all experienced sitting in a restaurant, waiting to order, only to wait again to pay. But this issue can easily be avoided! A simple and smart solution is to digitize your ordering and payment process, allowing your guests to order food via a QR code at their table. As a Shopbox customer, you can get your very own digital menu that your guests can download on their smartphones. From there, they have access to your entire menu through a QR code, with the ability to order and pay for their meal – that’s convenience! Learn more about the solution here.
3. Undgå lange køer
Vi har alle prøvet at stå i lange køer for at få lov til at betale eller for at få hjælp. Det kan være til stor irritation og i værste fald få os til at forlade køen. Hvis det sker, er der en meget lille chance for, at vi som kunder vil vende tilbage til samme sted en anden gang. Lange køer kan derfor føre til både mistede salg og tab af kunder. Derfor er det en god idé for så vidt muligt at undgå lange køer, således at kunden får en god købsoplevelse. For at reducere kø er det først og fremmest vigtigt at have ekstra bemanding på i travle tidsrum, så der er nok personale til at hjælpe kunderne. Dernæst er det en god idé at have en digital kasseløsning, der tillader personalet at betjene kunderne ved kassen hurtigt og effektivt.
4. Keep track of prices
We’ve all experienced missing price tags or confusing, even misleading signage. In such cases, we either have to seek assistance from staff or simply put the item back and leave the store. To provide a good experience, it’s essential to keep track of prices.
Make sure the correct prices are displayed clearly and accurately to avoid unnecessary confusion. This small detail can significantly enhance the customer’s shopping experience and increase the likelihood of a purchase.
5. Keep track of inventory
Nothing is more frustrating than out-of-stock items - for both your customers and you. Customers may become irritated and look for alternatives, while you miss out on sales. That’s why it’s important to have full oversight of your inventory to avoid empty shelves. To create an easy and efficient overview, you can manage your inventory directly through your checkout system. This makes it simple to handle and monitor your stock. You can even receive notifications when it’s time to reorder a specific item, ensuring you always stay on top of your inventory.
Learn more about integrating inventory management with your checkout system here.
6. Make a welcoming impression
A part of the shopping experience is about the impression customers get. Whether visiting a restaurant or shopping in a store, it’s essential that customers feel welcome and comfortable. There’s nothing worse than a cluttered store or a restaurant filled with stressed and disorganized staff.
Take the extra steps to ensure everything runs smoothly, creating a clear and pleasant environment for your customers.
3 methods for increasing customer loyalty
Once you’ve ensured a great shopping experience, you have a solid foundation for boosting customer loyalty. However, there are also more specific methods you can implement. To increase customer loyalty, consider offering a loyalty program. According to The Loyalty Report 2020, people are 72% more likely to recommend a business to friends and family if it has a good loyalty program.
If you use Shopbox’s checkout system, you can add a loyalty module that provides various options for strengthening customer loyalty. With this module, you’ll gain access to the following 3 practical methods for increasing loyalty:
🎁 Gift cards
You can create digital gift cards that your customers can purchase for friends and acquaintances, allowing you to expand your customer base easily. Gift cards are a simple yet highly effective method for strengthening customer loyalty.
➗ Discount structures
You can also set up discount structures for specific customer groups. When you register a customer in your checkout system, you can link them to a discount plan, and the system will automatically apply the designated percentage discount each time they visit. People love perks, and discount structures can be an excellent way to reward your customers for their loyalty.
💰 Bonus points
Last but not least, you can utilize bonus point programs. Loyalty programs that allow customers to earn and redeem points influence 69% of customers to choose one business over another. Bonus points can therefore be a powerful incentive for customers to return to the same place - helping you create a loyal base of regulars.
At Shopbox, you can integrate a loyalty module with these features into your checkout system. Read more about the loyalty module here or contact us here to learn more about how to get the loyalty module for your business.