fbpx People love incentives. Incentives are defined as “a thing that motivates or encourages one to do something.” Loyalty programs for your customers work as an incentive to keep them coming back to your store. Loyalty programs, such as frequent buyer plans, allow stores to reward customer loyalty by offering discounts to customers who have purchased multiple products from the store. Maintaining customer loyalty programs are almost a necessity to stay competitive in the retail market.

Here are three major benefits of loyalty programs:

1. Retain existing customers.

Returning customers spend about 67% more money than first-time customers. You’ll want to incentivize your customers to keep coming back by rewarding them for their purchases.

2. Increase customer spending. 

The closer a customer is to a reward, the more they’ll want to spend to receive and use the reward.

3. Establish positive word of mouth. 

Your loyal customers are more likely to refer your store to their friends. Need some ideas for a frequent buyer plan? Here are five frequent buyer methods that are available within RICS: Looking for other ways to keep your customers coming back to your store? Check out this blog post.