There are 6 steps you need to take to make your Loyalty Strategy as effective as possible, here are the last 3 steps!

4. HOW do you create a system that works?

Here are a variety of different ways to work your loyalty system …

A) Every 6th service free … this is ideal for businesses where customers shop regularly. The customer will get their card stamped each time they visit. On their 6th visit, the meal, service or product is free. The effectiveness depends on the frequency of visits, and the value of the free item. Offering every 10th purchase free is not enticing enough. Every 4th purchase will hurt you unless your profits are far more than comfortable.

B) Credit system … people are given a card and when presented they receive credit for their purchase. Every £10 the customer spends earns them £1 credit, which they can spend any time in the future, but only at your business. Having to spend their credits there will keep them returning,

C) Points System … Every customer purchase gives them points. For example, £10 may equal 100 points. When the customer reaches a certain number of points, they can spend them on a range of prizes.

D) Extra service perks … each time the customer visits the mechanic they got extra stuff – cake, cappuccino, special smelling oils for their car, a free magazine to read. Work out what special extras you could provide for your customers.

E) Send gifts and thank you cards … this is a good one if your profit margin is low. If your customers are loyal or if you only see your customers every couple of years or so, why not send them newsletters, thank you cards or even the occasional gift? A little gesture of goodwill can go so far for customer satisfaction and will make them remember, respect, and return.


5. WHEN should you introduce people to the Loyalty Strategy?

Once you’ve worked out what you’re prepared to give your customers in exchange for their loyalty, you need to work out when the ideal time is to introduce them to the loyalty system.

In some cases, you need to do it on their first visit. This needs to be done delicately. You can’t really say ‘I know this is the first time I’ve seen you, but I think of you as one of our most important customers’. People will see right through that.

When you’re going to hit people with the idea straight away, it must be more of a ‘regular customer card’ or ‘frequent buyers rewards program’.

If you have a suspicion that many of your customers come to you once, find out that you don’t do anything special and then leave you for someone else, you need to get them straight away.

when you get people coming back regularly anyway, it may be worth delaying the card until later. Then it can be called a VIP Card or a Special Customer Card. It will have the impact of encouraging them to come back more often.


6. WHAT ELSE do you need to think about?

Use this section as a final checklist – once you’re happy with your loyalty strategy, run through and make sure you’re ready to get started. Here are a few things you may not have thought of …

Staff Training: Do your staff fully understand the strategy you’ve implemented? It’s important that they understand the vital role they are to play in this strategy.

Check Stock and Staff Levels: It’s unlikely your loyalty campaign will bring in hundreds of extra sales (very few actually do), but you need to be prepared for a sizeable response. There would be nothing worse than having a rush of extra sales only to find you have no stock or are too busy to take advantage.


There we have it!  The 6 steps to creating a successful Loyalty Strategy! Following the steps outlined in these blogs will give you a much better chance of getting some repeat business and regular customers, without throwing money away for free. Like we said, it’s not a guarantee, and requires you to think long and hard about it, but the chances of the success will be much higher now you’ve read our expert guide. Now get out there and find yourself some loyalty!