The whole idea behind having a loyalty program is to increase business sales in the long run, by rewarding repeat (loyal) customers with incentives, discounts and other offers and encouraging them to keep buying from you! It’s a simple yet a very effective and powerful strategy. Whether the goal of the business is to increase sales or to give a strong push to a slow-moving business, loyalty programs play an essential role for many big corporations. However, what about small retailers? Can Loyalty Programs be equally effective for small retailers and shop owners?

Now, the answer to that question is a big YES! A well-planned customer loyalty program can make even a small retail business increase their revenue and have sustained growth.

As we all know, it always costs more to acquire a new customer than to retain an existing one. Come to think of it, loyalty programs can help a small retailer / business owner in many ways. Below are some examples:

Aids in inventory management

In any retail business, inventory management is a challenging task.  You need to stock the right products to ensure your business can cater to the needs of the customer. When you have a loyalty program in place, you are aware of what the regulars prefer and that way you can stock the best-sellers at your retail outlet.

Customer engagement

Loyalty programs are effective in making your customers stick by you. By repeatedly rewarding your customers, you make it harder for your competitors to steal your customers from you!  It gives you the opportunity to communicate to customers about your new offers, schemes, or services freely. In return, you get more appreciation from your customers and are also able to retain them.

Improve  service/ provide better products

With a loyalty program in place, you are better equipped to know what your customers like. You can stock a similar inventory and offer quality products and service. It leads to an increase in customer satisfaction.

A right kind of POS tool guides you to effectively chalk out your loyalty program that’s beneficial to your business needs.

Low cost

In today’s age of mobile, cloud and other technological advancements, running a loyalty program for customers is not only easy but is economical as well. Loyalty programs are easily run via phone messages, emails, and simple in-store communication!

Compete with bigger retail outlets

Competing with the bigger retail outlets in your locality becomes possible with well planned and executed loyalty programs. Smaller retail outlets are able to personalize their loyalty programs based on the kind of customers they wish to retain and attract.

Being a small fish in the big pond, have their advantages. Use that advantage to the fullest by opting for the right loyalty program that suits your business needs. It will help you compete with the bigger fishes in the pond.

With innovative technology available at your fingertips, it is wise to invest in an innovative POS tool that helps you efficiently deliver customer service, help design a loyalty program and give a boost to your business.

Check our POS tool Posible, which offers cutting edge technology at affordable prices.