Implementing a Loyalty Rewards Program Grows Profitability

With gasoline prices still higher than they had been over the past several years, consumers are looking for ways to manage their costs.  In fact, higher food prices and rising interest rates are leading shoppers to look for coupons, savings, and reward programs to save money wherever they can.  Implementing a loyalty reward program is a great way to attract repeat customers to your locations and grow your profitability.

Remember the days of punch cards?  Today’s loyalty reward programs are much more sophisticated.  That’s good news for both store owners and customers alike.  From a shopper’s perspective, it’s simple to download an app, enroll in a program, and pull up an electronic code at the checkout counter to track purchases.  The benefits to the store are many.  Since all the data is stored electronically, businesses get good information about consumer demographics, shopping habits, and profitability of the loyalty program.  

How does a loyalty rewards program grow profitability?

Loyalty rewards programs grow sales and improve profitability from many angles.  Here are just a few of the most notable benefits your company will enjoy from implementing a loyalty reward program.

1. More customer engagement.  Customer engagement is a fancy term to describe how well your shoppers enjoy the experience they have buying from you.  Many consumers feel like they are part of a “club” when they belong to a rewards program and are more likely to shop at your locations more often and share their positive experiences with their friends and family.  
2. Extends your brand.  It’s easy to get your brand in front of consumers with a loyalty rewards program.  Customers are more likely to open emails or accept texts where you can communicate your brand image and messages.  Many retailers take advantage of rewards programs by creating branded rewards such as stickers, mugs, and t-shirts viewed as fun perks by their customers.
3. Increased retention.  Customers are more likely to continue to buy from you when they belong to a loyalty rewards program.  Approximately 84% of customers say they will stay with a brand because of its loyalty program, and 66% say they’ve changed their shopping behavior because of a rewards program.  
4. Increased sales.  When customers frequent your business more, sales will grow.  However, shoppers also tend to spend more when collecting points or credit towards a reward.  Best of all, the costs of getting the sales are less because promotions can all be communicated to the customer via the application software.
5. Access to customer data.  Your loyalty rewards program can store all the information about your shoppers’ buying habits.  It’s easy to know who is buying what, and you can design promotional campaigns for different segments of customers based on their purchasing behavior.  You’ll also gain valuable insights about products, pricing, and placement in your stores.

If you’re considering implementing a loyalty rewards program, contact GP Energy.

Contact our experts at GP Energy to help analyze your business and introduce you to strategies to increase your revenues and profitability.  We work with business owners to review business practices, evaluate methods for improving operational performance, and implement programs to boost bottom-line profitability.

We can help you search for the right location, select between branded or unbranded fuel, build your business brand, diversify your product line, select ancillary services to boost your bottom line, and so much more.  By partnering with GP Energy, we can help your business unlock its potential with new opportunities and achieve unimaginable success.  Contact us today to get started.