Your ePOS system can be a powerful tool for helping to establish and optimise a loyalty scheme. Seamless integration between a loyalty platform and ePOS will give your business the opportunity to capture more customers and build strong relationships with those you already have. With British customers the second most likely nationality to have a loyalty card in their wallet, this type of scheme can have a lot of benefits when it comes to maximising the potential that your business has.
Why loyalty schemes work for retailers
Using your ePOS to help establish and run a successful loyalty scheme can have a positive impact on the bottom line of the business. While loyalty schemes can have a part to play in attracting new customers their real value is optimising those who have bought from you before. It costs six times as much to attract a new customer than to retain a current customer and the likelihood of selling to an existing customer is 60% and 70% - for a new customer this can be as low as 5%. Loyalty schemes also provide a wealth of data, showing you who your biggest fans are when it comes to customers, as well as how they buy from you, all of which can be funnelled into improving marketing ROI.
What makes a loyalty scheme successful?
Just the existence of a loyalty scheme won’t necessarily start the process of generating the benefits that you might be hoping to see from it. For example, if your customers have loyalty cards but are using them in just 40% (or less) of transactions then the scheme is not motivating customers to engage with it. According to recent Nielsen research there are three key benefits that really work when it comes to getting customers to engage with loyalty schemes. These are: free products, cashback and being valued by the brand as an important customer. In the UK the last of these is particularly key – British customers are nearly twice as likely to value being seen as an important customer as others globally. So, how do you ensure that your loyalty scheme is engaging?
- Offer discounts, products and deals that are personalised. Integrated ePOS data can have a big role in helping to identify what individual groups of customers are likely to value the most when it comes to loyalty scheme benefits.
- Consider both long and short term benefits. For example, you might want to offer a series of seasonal discounts combined with an ongoing perk for loyalty card customers, such as free coffee refills.
- Spend time analysing the data that you have in order to generate the offers that are most likely to appeal to your loyalty card customers. Making the time for analysis will enable you to see, for example, what people buy the most, how they pay and which offers and discounts they have acted on in the past.
Your ePOS system is a crucial component in establishing an engaging loyalty scheme that will give customers a good reason to continue to return.