3 Ways Service Companies Profit From Customer Loyalty Programs

3 Ways Service Companies Profit From Customer Loyalty Programs

Customer loyalty programs are a big marketing hit for retailers. They get customers in the door and keep them coming back. Loyalty programs make customers feel valued which keeps them buying from you and not the competition. You see loyalty programs for tangible goods like groceries, electronics, and hardware. But, how does the service industry capitalize on this marketing technique?

Repeat customer perks:

Offering customers a punch card for coming back to their store repeatedly is a great way to add an incentive for customers to come back. A sandwich shop could have a punch card for customers, and they receive a free sandwich with the combo meal order every 10th time they order lunch. A salon could have a complimentary service after spending enough money like a free manicure with their next visit. The perk must incentivize customers to come back, spend money to get the perk, make them feel appreciated, and earn the business money.

Referral discount or added service:

If a customer refers a friend to your business give a referral bonus given to that customer. Depending on the type of business you have will determine the type of perk. If you own a sandwich shop you can add a coupon for a percentage off your next meal for the referral. If you are someplace more upscale you may want to shy away from discounting your services as you don’t want to devalue them. Try adding an additional complimentary service to an already pre-existing order.

Members-only club perks:

This is a popular one with the airline industry. The members-only room is where frequent fliers receive free drinks and light snacks in a club room paid for by the airline. This is a great way for customers to feel valued for the money they have loyally spent with that company flying. Being able to relax with free drinks while waiting for their flight is a great way to encourage continued patronage.

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