A loyalty program, by Loyal Loops, can be an effective component of your grocery store’s marketing plan. Successful marketing plans are designed to bring in new customers and keep old ones coming back. Loyalty programs have three advantages to making this happen. They can establish an excellent reputation as a brand which offers high value for its products, take advantage of customers thinking in terms of sunk cost, and channel both of these into an effective word-of-mouth advertising scheme.
1. Great Value
The best part of a loyalty program is how it works itself into your customers’ thoughts about your business. If a customer believes that they are getting more products for free, they will have a much higher opinion of your store. Even if the real savings is something as low as a five dollar discount for every hundred dollars they spend, this makes a customer feel as though they are skilled shoppers saving huge discounts. Loyalty programs focus the added value they feel like they are getting to your store, associating the better savings with your business.
2. “I can’t stop now”
A common reaction to investing time or money into a project or program is to feel that “if I’ve put this much into it, I’d be wasting it if I don’t put more.” This is the sunk cost fallacy, and is a powerful marketing tool. By tying your loyalty program to easily understood goals, customers will feel that they have already started working towards that goal and would lose all their progress if they stopped now.
3. Spread the Word
Lastly, these tools create their own word-of mouth campaign. You want your customers to proudly say that they shop at your store, whether because of the savings or out of habit. This has the power to come up in casual conversations with friends and family, spreading an effective message about your business.
These three benefits from a loyalty program can dramatically increase the profit of your grocery store. Contact Loyal Loops to find out at how you can work them into your marketing plan, and soon you’ll be seeing a lot of the same faces coming in again and again, bringing new faces along with them.