How to Set Up a Loyalty Program for a Local Gift Shop

There’s no doubt: A well-run loyalty program keeps customers coming back and increases average spend.

A loyalty program does not need to be complicated. Here is how to build one that works for a local gift shop without adding administrative burden.

Decide What You Are Rewarding

Most gift shop loyalty programs reward spend — for example, earning one point per dollar. Others reward visit frequency. Choose one approach and keep it simple. Customers will not engage with a program they do not understand at a glance. A straightforward spend-based model is easiest to explain at the counter and easiest for customers to track.

Set a Meaningful Reward

The reward needs to feel worth earning. A dollar amount off your next purchase is a good starting point. Also, $10 voucher after $200 of spend is a reasonable starting point for a gift shop.

Adjust based on your average transaction value. If your typical sale is $35, a program requiring $500 before a reward is earned will feel out of reach and will not drive behaviour.

If you’re not sure where to start, consider offering 10% of the value of a purchase off the next purchase if done in a fast timeframe.

Keep Sign-Up Frictionless

Ask only for what you need: a name, a phone number or email address, and consent to contact. A loyalty program that requires five minutes to join at a busy counter will generate resistance from both staff and customers. The best programs take under a minute to set up.

Better still, especially if you have one time only shoppers, have no sign up. There are loyalty programs that offer this.

Train Your Team

Every staff member needs to understand the program and be able to explain it confidently. Consistency matters. If one staff member always mentions it and another never does, enrolment rates will be low and customer trust in the program will suffer. Build a simple script: “Do you have a loyalty card with us? Would you like to join?”

Communicate With Your Members

A loyalty database is a marketing asset where you have locals, regulars. Use it. Send a simple email or SMS when a promotion is running, when new stock has arrived that suits their interests, or ahead of key gifting seasons such as Mother’s Day and Christmas. Even two to three communications per year will keep your shop top of mind.

Use Software That Does the Work

Manual loyalty tracking on paper cards is prone to fraud and error. Retail software from Tower Systems includes an integrated loyalty module that tracks points automatically at the point of sale, sends redemption reminders, and allows you to segment your customer base for targeted communications. Visit www.towersystems.com.au for details. Tower also offers the voucher type program discussed here.

Tower Systems builds loyalty program tools directly into its retail software for gift shops, newsagencies, and more. See how it works at http://www.towersystems.com.au.