How to Create a
Successful Loyalty Program.

Borrowing the Pareto’s principle, 80% of your sales come from only 20% of your customers. A successful loyalty program can help you show your appreciation and keep customers coming back.

What’s a customer worth on their first visit?

What are they worth on their second visit?

What about their 100th visit?

While pinpointing the exact monetary value of a dry-cleaning customer can be difficult, modern research shows that repeat customers are incredibly valuable for the long-term success of any business in every industry.

There are plenty of stats that you can cite, but a report from Bain & Company says that a 5% increase in customer retention results in a 25% increase in profits. An infographic from MarTech says that new customers are worth ten-times as much as their first purchase. This means that if someone spends $100 on their first visit, they are worth, on average, $1,000!

These numbers tell us that we need to do everything we can to increase customer loyalty. One step you can take is to create a loyalty program. Loyalty software is easy to implement and can create more repeat business for your dry cleaning service.

But to have a successful loyalty program, you need to do it right. There are different types of loyalty programs you can offer. Below we explore some loyalty programs examples to help get you started.

Increase Customer Retention with a Successful Loyalty Program

Apply the KISS Principle!

Keep It Simple, Stupid! Or, if you want to be nice, Keep It Super Simple. The point is the same: if you want to have a successful loyalty program, you need to create a system that is easy for customers to understand. Don’t bog the program down with complex equations and multiple scenarios, just give them a simple incentive that can be achieved in a relatively short period. For example, a free dry cleaning for one garment after five purchases is a nice, simple setup for your loyalty program.

Communicate the Monetary Value of Your Points

If you are offering a points-based loyalty program, be sure to emphasize the value of the point in a clear manner. In most cases, having points that are worth $1 each is a good way to organize your system. For example, if customers spend $100, they can get 10 points which are equal to $10. This easy format allows customers to quickly calculate how much they have gained from the program.

Offer Non-Monetary Incentives

While most loyalty programs focus on the customer’s wallet, you can also create programs that speak to their emotions. A classic loyalty program that you can implement involves donations to charities or giving a percentage of the sale to community organizations. If you understand your customer’s values, you should be able to find a high-quality charity that would benefit from your business and bring greater goodwill to your dry-cleaning services.

Give Experiences as a Reward

You can also give experiences as a reward for loyalty, and it’s best to find experiences that match up with your business. For example, a gift card for a fine-dining restaurant would give your customers the opportunity wear their perfectly dry-cleaned clothing. Other experience-based rewards could include movie tickets, sports tickets, massage gift cards, or day passes to the local museum.

Create a Buy-In VIP Membership Program

Yes, we’re trying to create customer loyalty, so charging a fee might seem counter-productive. Hear us out. By creating a higher-tier VIP membership program, you create the feeling of exclusiveness while delivering highly-beneficial services to your customers. Not only will the buy-in customers feel like an exclusive group, they’ll be more likely to stick with you; after all, they paid for the privilege! For dry cleaning services, possible VIP members could include business people or companies that frequently need clean, professional clothing on a routine basis.

Partner with Another Local Business

Perhaps you and another local business have would meld perfectly together to create an excellent loyalty program. It might look something like this: if a customer uses your services 10 times, they get a free service or product from the partnering business, and vice-versa. Depending on the agreement, you may have to compensate the business for their service. Business that would seem to match with dry cleaning include clothing stores, tailors, bridal shops, and even florists. However, you could also partner with local restaurants, auto shops, or gas stations. This can provide both increased loyalty and new customers.

Offer Business or Group Programs

Large groups often bring large profit margins. Imagine if you could have 100 people using your services by simply offering a small group discount. Go to local business and offer a discount to their employees. Almost any business will do, but good options might include auto sales, insurance agents, lawyers, and any large offices in your area. For just a 10% discount, you could significantly increase the amount of people who come to your dry cleaner while also improving customer loyalty.

With these simple tips, you can create the best loyalty rewards program that brings customers to your store over and over again. If you have any question on implementing loyalty software, please contact us today and we’ll make sure you have the right information to meet your future goals!

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