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Welcome to the future of marketing- MObile Marketing

Are you using a mobile loyalty program? Why Not?

6/13/2019

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Did you know that customer loyalty programs operate based on the well-founded notion that it is less expensive to keep a current customer than to find a new one.  Providing rewards in the form of points, cash back, and discounts on merchandise can help achieve that goal.  The use of loyalty programs — long the purview of retail chains, credit card companies, and airlines — is now well within the reach of small businesses.

Customer Loyalty Program Benefits
There are several reasons why small businesses should consider implementing a loyalty rewards program.
  • Increases repeat customers. Loyalty programs can lead to an increase in repeat customers, which could boost revenue.  A study by BIA/Kelsey and Manta found that a repeat customer spends 67 percent more than a new one.

  • Puts you ahead of the competition.  A loyalty program can give your business an edge over competitors who fail to offer similar incentives.

  • Loyalty programs are cost-effective.  Many loyalty programs geared to small businesses cost very little. Companies like Belly and Punchcard (discussed below) have subscription fees that start at less than $100.00 per month.

  • Established marketing tactic. Loyalty programs have been around for decades, and the advantages are well known.  Remember S&H Green Stamps? Once the largest loyalty program in history, it still exists in the form of S&H Greenpoints, a digital reincarnation of the original.

  • Digital programs track customer data.  Digital loyalty systems automatically track and store customer purchase activity in a database, making it much easier to determine the program’s effectiveness than when using old-fashioned, paper-based schemes (e.g., punch cards or stamps), which can be difficult to monitor.

With these benefits in mind, perhaps it’s time for you to consider putting a loyalty program into action.  Years ago, Groupon-type deals were popular with small businesses — but there was a downside.  

Often, deals were so deeply discounted that they cost the merchant money rather than the other way around.  It soon became apparent that shoppers were more loyal to the deal than to the business.  Without a retention plan in place, few saw repeat customers.  Just because you have a loyalty program does not mean it will succeed.  You need to keep it at the forefront of your customers’ minds.  And Baytech can recommend several easy and fast ways to do so.

Creating mobile loyalty programs that use apps and text messaging is a way to take advantage of the steady rise in mobile device use and to connect with the ever elusive "younger generation".
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    Author

    Jim Beck, the President of Baytech Mobile has been programming websites and sending digital marketing messages for over 20 years. He  works with clients to help them engage the mobile consumer through mobile and text message marketing solutions and strategies. He loves to help others implement mobile marketing into their businesses He hopes you enjoy this mobile marketing blog as much as he does writing it!


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