Getting a new customer through the door takes work: ads, signs, word of mouth, and a little luck. Getting a happy customer to come back is usually easier, and a good loyalty program gives them a reason to. You don't need an app or a big budget. You need a reward people actually want, rules that are easy to explain, and a POS that keeps track for you.
Pick a program that fits your store
Points per dollar
Customers earn points on every purchase and trade them in for a discount or a free item. This works well when people buy a mix of things at different prices.
"Buy X, get one free"
The classic punch card: buy nine coffees, get the tenth free. It's great for stores where people buy the same thing over and over, like a café, a feed store, or a shop that sells refills.
Spend thresholds
Spend a set amount over time and get a reward, like $10 off once you've spent $200. It's simple to explain and easy for customers to track.
VIP perks
For your best customers, the reward doesn't have to be a discount. Early access to new arrivals, a members-only sale night, free gift wrapping, or a birthday treat can mean more than a few dollars off.
There's no single right answer. The best program is the one your staff can explain in one sentence at the register.
Make the reward worth it, but affordable
Before you launch, do some quick math with your own numbers. Look at your margins and decide how much you can give back without hurting your bottom line. Start modest. It's much easier to make a program more generous later than to take rewards away from customers who are used to them.
Also decide what's excluded, if anything. Some stores leave out gift cards, sale items, or certain brands. Write it down so everyone on your team gives the same answer.
Keep sign-up fast
If joining takes more than a few seconds, people won't bother, especially when there's a line. Most POS systems can look up a member by phone number, so all you need at checkout is "Can I get your phone number for rewards?" Skip long forms. You can always ask for an email or birthday later, and only ask for what you'll actually use.
Be upfront about what you'll do with their information. If you plan to send emails or texts, say so and make it easy to opt out. Text messages in particular come with consent rules, so check them before you start texting customers.
Ditch the paper punch card (if you can)
Paper cards get lost, forgotten in another purse, or "punched" with a pen at home. Tracking rewards in your POS fixes all of that. It also shows you who your regulars are, what they buy, and who hasn't been in for a while. That's information you can use to send a "we miss you" offer or to stock more of what your best customers love.
Train your team to mention it
The best program in the world won't help if nobody hears about it. Ask your staff to mention it at every checkout and to let customers know when they're close to a reward. A sign at the register helps, but a friendly word from a person works better.
Use your gift cards and loyalty program together
If you sell gift cards, they're a natural partner for your loyalty program. A holiday promotion like "buy a $50 gift card, get a $10 bonus card to use in January" can bring people back after the holidays, when things usually slow down. Just make sure the terms for any bonus card are clear and printed on it, and check Indiana and federal gift card rules before you set expiration dates or fees.
Watch the results
After a couple of months, check a few things in your POS reports:
- How many customers have joined?
- Are members coming back more often than non-members?
- Are rewards actually being redeemed?
- Is the program costing more than you expected?
If people are signing up but never redeeming, the reward might be too far away. If nobody is signing up, the sign-up might be too slow or the reward too small. Adjust and try again.
We can help
Custom Software Inc. is a Terre Haute company that sets up and supports POS systems for local retailers. If you'd like help turning on loyalty features in your current system, or you're not sure your POS can do it, give us a call or send us a message. Learn more at customsoftwareinc.net.
We're also building a new POS system with input from local store owners, and loyalty is a big part of it. Tell us what rewards would work for your shop, and help us build it right.
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