Payment Processing Blog

How to Implement a Loyalty Program for Your Business

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Here at Penni, we want to help you grow your business. As one of the best payment processors in Canada, we not only offer low-fee payment processing but have created this blog to give back to our clients with advice and information to help with their business. 

Our blog is designed to help you understand how to integrate payment processing for small businesses. Work with Penni today and see how payment processing can improve your business.

What is a customer loyalty program?

A loyalty program can look different from business to business, but in general, it is a program developed by a business owner to reward their customers for their continuous support. 

It aims to reward frequent shoppers with discounts, prizes, and other “perks”. When you think about it, you can see customer loyalty programs all around. You may have noticed it at major businesses such as Starbucks, Sephora, or your local coffee shop. 

Or perhaps you are loyal to a brand even though they don’t have a loyalty program. A great example is Apple, which has built a dedicated and relentless following because people just love their products and don’t need any other incentive.

The benefits of a customer loyalty program

Loyalty programs in Canada are popular because they create a sense of community among those who love shopping at a particular store, and of course, the rewards provides incentive. 

If you own a small business, the best rewards programs are those that help build stronger relationships with customers and increase the customer’s overall satisfaction. As a small business, customer retention is very important, which is why implementing a loyalty rewards program will be extremely beneficial.

You will be able to make your business stand out against the competition. Rewards will give your customer base greater incentive to choose your business over others because they want to earn more points for a gift or a discount on their next purchase.Boost your revenue as you improve your customer retention rate and get to know your customers.


Get to know your average customer

Before creating a loyalty program for your business, you should gather some information that will help you decide what kind of program your customers would appreciate. 

Who is your average customer? Or who do you picture as your future customer? You can start building a persona, gather testimonials, and speak with your customers. The goal is to see how your customers would like to see your rewards program implemented. 

This is also a good time to evaluate your customer service. Have you been consistently offering high-quality customer service experiences? Have you gotten any negative feedback? Are there areas that need improvement? Ensure that your business is providing the best customer service experience possible.


Creating a customer loyalty program 

Now that you have studied your customer base, you can begin creating your customer loyalty program and thinking about what it will look like for your business. Here is a guide to help you get started. 


Think of a name for your customer loyalty program 

You need a catchy, creative, and memorable name for your loyalty program to use for marketing purposes and so that your customers will remember to utilize the program. 


Have multiple ways to join 

Customers should be able to join the program not only by making purchases but by signing up for newsletters for example. Make it accessible to everyone. 


Reward multiple actions 

You can offer rewards for more than one action. You can reward your customers for making purchases, joining an e-mail list, or sharing posts on social media. 


Offer different types of rewards

Offering a variety of rewards makes your loyalty rewards program more interesting. These can include; gift cards, small gifts, coupons, and discounts. 


Set goals for your customers

By setting goals you can provide incentives to your customers to keep coming back to your business. For example, once you have reached 200 points you receive 10% off, and so on. 


Invest in partnerships & collaborations 

Collaborating with another business that you know your customers like is another great way to improve your retention of customers. A common partnership is a giveaway, where multiple businesses offer customers the chance to win free products through interacting with their social media posts via liking, sharing, or commenting. This benefits the businesses in the partnership by sharing your pool of customers.


Examples of loyalty programs for small businesses 

There are many types of rewards programs to choose from, but remember, what would be best for the business? Think about your customers, your business model, and your budget when choosing a program.

  • Punch cards
  • Discounts
  • Opt-in email 
  • Free trails
  • Partner programs
  • Referral program 
  • Point system 
  • VIP memberships
  • Subscription 
  • Make charitable donations 


Think about your budget & your goals

Once you have successfully developed your loyalty rewards program you can start planning on how you will be integrating it into your business. Begin by developing a marketing strategy, setting measurable goals, decide on a budget, and continue studying how your customers respond to the program.  

Are you looking for a payment gateway to accept payments for your business? Penni offers payment processing for businesses in Canada. We make payment processing simple, so you can stay focused on your business.