Why Small Businesses Should Be Util
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The philosophy behind a customer loyalty program is simple: Repeat customers are rewarded and businesses increase sales. It’s a basic but powerful strategy.
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Best Buy also turned to customer loyalty after experiencing stagnant revenue growth year after year in its brick-and-mortar stores. To keep up with major online retailers like Amazon.com and eBay, Best Buy increased reward points from 4 percent to 5 percent last year to motivate customers to keep coming back.
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Whether the goal is to continually increase sales or to jumpstart sluggish revenue, customer-loyalty programs appear to have become a staple for many large corporations. But what about small businesses? Manta’s and BIA/Kelsey’s joint report “Achieving Big Customer Loyalty in a Small Business World” reveals that for early adopters who already have a customer loyalty program in placed, 64 percent of them report it’s been been effective, meaning it makes more money than costs to maintain it.
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