77% of consumers say loyalty programs make them more likely to stay with brands (Bond)
While it is true, that business that create loyalty programs experience a much higher degree of repeat business and sales. It is also true that creating and maintaining a loyal customer program can be very expensive to maintain. Or is it?
According to current statistics reported in hundreds of national surveys on Blog Access Development loyalty programs are a great way for a business to attract an retain good customers. That is an undeniable truth. The challenge is finding a loyalty program that is cost effective and accepted by consumers. Let’s face it, if they don’t use it, it doesn’t matter how much It cost it must work to bring in customers or it is worthless.
This is especially difficult for small business owners thinking about getting a reward program for their customers, they are faced with a decision. Do they create a loyalty program from the ground up or do they subscribe to a reward program service to mitigate cost?
Creating your own reward program from scratch: The obvious advantage here is a business will have its very own branded label on the loyalty program. The downside; it is very costly to design and implement and even more so to market and maintain effective use of the program by the customers. Unless we are talking about Marriott, Panera, Starbucks or other franchises that offset the cost by spreading the cost among the franchisee and developing huge professional marketing departments. This is not effective or affordable by the small business owner typically with less than 10 employees. So, this takes us to option number 2.
The small business owner might look towards joining an existing rewards program like FIVE STAR or AGORA PERKS. By joining an existing platform that specializes in reward programs the cost is dramatically lower as well as the manpower needed to ensure the customers use it. On the surface this option may seem to be the better choice for the small entrepreneur but there are still questions which must be addressed.
Are all reward program platforms the same?
The short answer is no, there are many different companies that provide reward programs, discount coupons and Gift Certificate Programs. The business owner must decide what is right for them. The choices are so many it may be a little intimidating but here are a few of the major variables to consider:
COST: Although the advantage to join a existing rewards platform is less expensive it may not be necessarily cheap. Cost vary from $99 a month to $500 a month to maintain and $48 to $500 to setup depending on what platform and where they are located.
SALES COMMISSIONS: Depending on the rewards program platform and contractual agreements some charge a commission on the actual sales of your product or service. Like how some advertising companies “create” a coupon deal for the business, then “sell” the coupon on their site, collect the monies and take up to 60% commission. This is the worst-case scenario as the small business still has to provide 100% customer satisfaction. Imagine a small restaurant that has a $20 entrée, the coupon deal offers a 50% discount (typical) now a deal is created for $10. This $10 coupon is then sold, and the advertising company collects the $10 and charges a 60% commission leaving the business owner $4 yet, that business still must provide the customer with $20 worth of table service. That practice though very common has hurt many business owners in the long run. The tendency is to attract bargain hunter and not loyal customers. These customers tend to purchase only if they can get the same discount or better than the last offer made. Learn more about the horrible error of discounting your price on Discount for Dummies.
ADDITIONAL COST: Some reward platform requires equipment to rented or complicated software to manage.
PROMOTING YOUR DEAL: Getting the coupon deal or reward program started is half the battle. Now the real challenge start and that is engaging the customers. Some companies only charge for their service platform and leave it solely to the business owner to promote his or her reward program. Look for companies that have a physical, social and virtual marketing promotion programs to help “get the word out” promote your coupon.
At Agora Perk we believe it’s tough enough to run a small Business without big advertising companies taking up to 60% commission from the sale of a coupon.
Then the business owner has to honor the coupon that already discount the price typically by 50%. This is a very bad practice and attracts the wrong kind of customer. Consider a rewards loyalty program instead.
We offer the same quality Reward Programs, Loyalty Programs, Gift Certificate Programs and Discount Deals as the other guys BUT we charge zero (0) commission. That’s no commission at all, just a small flat rate for the duration of your Ad not how many users of the coupon deal or reward program.
If you feel as we do Consider a rewards program or loyalty program for you customers, to increase sales revenue and customer loyalty? There is no better time to try AGORA PERKS. For a limited time only reach thousands of local consumers o through AGORA PERKS for just $1 a day for 180 days.
Literally we guarantee your Ad or Rewards Program will be seen by thousands of local consumers in the South Florida Area. No Long term contract, no fine print, cancel anytime. Try it now for just $1 a day.
Learn more or start you local deal today visit:
or text or call 786-343-1821