Loyal customers are the best customers, and it’s been proven that they’re more profitable to your business. They’re more likely to return, easier to sell you, spend more on each purchase, and are more likely to tell their friends about you. According to the book Marketing Metrics, they have a 60-70% chance of converting, versus the 1-3% average conversion rate.
So how can you turn one-time customers into repeat ones? One way is through loyalty programs. On Appchai, we’ve built a specific plugin just for this purpose — the Loyalty Plugin.
How does it work?
Users on your app will create an account on your app. From there, they can see the awards they can earn from your establishment. Here are a few ways we’ve seen our users use it. Take these ideas as inspiration to come up with your own unique incentive system:
We’ve seen churches reward people for:
Going to mass
Bringing a bible to mass
Attending bible studies
These earned points can be accumulated and put towards a book store discount or some other rewards.
Probably the most common industry to use loyalty programs. This is most likely due to the plethora of reward tiers that you can have — all the entrees, happy hour specials, drinks etc. We’ve seen restaurants use the Loyalty Plugin to reward regulars for:
Eating there — usually the lowest tier of points
Ordering a specific food or drink — great for when you want customers to try a new dish
Coming on a specific day or at a specific time — helps to drive traffic during slow times of the day to accompany happy hour specials
These points can be earned towards free meals and drinks. For more inspiration, check out Starbucks’ reward program.
Though Loyalty programs are more commonplace in brick-and-mortar stores, you can definitely use this incentive structure if you are an online business as well!
Reward your clients/customers for:
Referring friends — if they’ve had X amount of friends sign up or purchase something, you may also reward them with a code
They can earn points towards a coupon, free item, or a gift card or some other similar reward.
If you want your users to behave in a certain way, it helps to set up an incentive system. Create different tiers to encourage them to continue to behave favorably in the future as well. There’s tons of ways to use this that can apply to several different industries.