How A Points & Rewards Program Helps Grow Your Business
If you follow any Oliver POS updates, you might know that we’ve recently launched a new extension for our point of sale — a points and rewards program for your POS!
So many of our customers were using WooCommerce Points and Rewards in their WooCommerce shop to give their online shoppers points for their purchases, and we wanted to make sure they could give their in-store customers the same benefits. So, we built Oliver POS — Points and Rewards for WooCommerce, an extension compatible with WooCommerce Points & Rewards to let your in-store customers reap the same benefits of WooCommerce Points & Rewards as your online customers.
So, we thought we would outline some of the benefits of points & rewards programs, to demonstrate why so many of our customers wanted it — and why you should want it, too!
Points & Rewards Increases Brand Equity
Perhaps the most important benefit of having a points and rewards program is how much it builds your brand equity. Brand equity refers to the customer perception of your brand. The higher the brand equity, the better. Customers are more likely to stick to a brand they trust, a brand that values them, or a brand that shares their core values. According to a study by Edelman, 81% of consumers said they needed to trust a brand before buying from them.
With high brand equity, your customers will choose to purchase from you over other brands, and not because of your specific products or services but because they trust you.
One of the essentials ways to build brand equity is to make your customers feel valued. If you offer a great points and rewards system that rewards them for their loyalty, not only will they keep coming back to reap the rewards, but because they feel valued by your business and are more likely to trust you. There are other tactics to build this kind of brand equity, but a points and rewards program is a great start and an essential aspect to keep your customers coming back — which leads us to our next point.
It Increase Brand Loyalty
Similar to brand equity, brand loyalty is simply a customer’s loyalty to your brand. While brand equity refers to the perception of your brand, customer loyalty refers to the positive relationship between your business and your customer that keeps them returning again and again.
Loyal customers will choose you over your competitors, and will continue shopping with you even during the slow season. Loyal customers also make up the most of your revenue — according to Markin Blog, loyal customers spend 67% more than new customers.
Building a foundation of loyal customers is an essential step to growing your business and reaching success. To read more about how to build your customer loyalty, reach our guide.
It Builds your Customer Base
Having a points and rewards program helps you build your customer base in a number of ways. Firstly, loyal customers are great for recommending you to their friends and families, so the more loyal your customers are, the more they’ll spread the word about you!
What’s more, WooCommerce Points and Rewards and Oliver POS Points and Rewards for WooCommerce let you reward your customers for a number of activities like leaving a review, or for signing up.
As you probably know, reviews are essential for building a customer base. According to BrightLocal, 87% of consumers read online reviews for local businesses, and 79% say they trust online reviews as much as personal recommendations. Building a library of online reviews for your business is the best way to increase your brand equity, improve your brand image, and bring in new customers.
Likewise, getting points for signing up for an account or a newsletter, or for referring a friend, can be a great incentive to bring new customers in.
It Increases Sales
Implementing points and rewards in your POS will help increase your sales. Customers are much more likely to purchase at businesses that have some kind of loyalty program — Citi Group finds that 86% of customers are more loyal to businesses that have a rewards program. Think of it like this — you have two options for a coffee shop. One coffee shop has a loyalty card, and you’re only one more coffee away from getting a freebie! Ther coffee shop has no loyalty card, so no free coffees for you. Which one do you think you’re more likely to go to?
Reaching a reward is a big incentive for customers. If they only need to spend a few more dollars to reach a great reward, then guess what? They’re going to spend those extra few dollars!
On top of that, another way to encourage extra sales is to have sale days during which your points are worth even more than usual. Customers will buy more just to take advantage of the extra points.
Points and rewards is a great plugin for building your brand. Not only does it help build your brand image, but it also helps build your loyal customer base and your brand equity, and it even helps increase your sales. Where can you go wrong?
Oliver POS — Points and Rewards for WooCommerce is available for free in your WordPress Plugin library. You need to have both Oliver POS and WooCommerce Points & Rewards to use it.
Want to request a feature? We’re listening. We have a full time development team that works on custom development for people like you. Let us know what you have in mind, and we’ll get back to you.