Implementing rewards and adopting mobile drives loyalty programs
April 25, 2013

Small and medium-sized companies rely on consumer retention to generate sales and boost revenue. While many spend large chunks of their finances on marketing to those customers, creating a gift card loyalty program can dramatically increase sales and drive profit.

Small business sees referrals increase after adopting a loyalty program
According to Street Fight magazine, one health company in California, b2be Sports and Wellness, saw its customer base explode after adopting a loyalty program that revolved around current clients referring the business to their friends and family. The company decided to implement a reward initiative within its loyalty program, asking customers through social media and at the gym to spread the word about the company to their friends and family for loyalty points.

The rewards program allowed clients to collect points to receive free gift cards to other local businesses. After the new campaign began, the business saw 70 percent of its 1,600 members embrace the initiative and the number of referrals skyrocket.

Loyalty programs that offer a level of personalization for clients can help drive sales and increase consumer retention. A new survey of customers also found they prefer loyalty programs that integrate mobile into their purchasing activity.

Survey finds personalization vital to shopper satisfaction
According to a recent poll of American and European consumers, one of the three main keys to customer retention is customization. The survey, conducted by Symphony EYC, a customer data software company, found consumers want companies to integrate their loyalty programs into the mobile environment. By creating an app or mobile site for these programs, businesses can help customers manage their shopping experience and send out individual offers to boost consumer satisfaction.

Ellen Dixon, global senior vice president of marketing for Symphony EYC, said connecting loyalty programs to mobile devices will result in happier customers.

"In particular, shoppers want to be able to use their mobile devices to locate specific products within the store, to compare prices with those elsewhere and to provide feedback and suggestions on grocery assortments," Dixon said.

Businesses that are considering adopting loyalty programs can boost the satisfaction of existing customers. Loyalty programs that reward consumers with gift cards or daily deals on their mobile devices can generate revenue and increase brand awareness.

Nexus: G-WEBCD1