Larger numbers of businesses are seeing the value of using a POS loyalty program. The benefits of gift cards, reward programs, and discounts can lead to repeat purchases and build a more dedicated customer base. Integrating a POS with a loyalty program can make it easier to keep track of buying habits and incentivize buying more efficiently.
Learning about the various pros and cons of using a loyalty program can help you decide which POS system is the best fit for your brand.
Why POS Systems Are Crucial To Success
Point of sale systems provides a wide variety of customer loyalty solutions. Many of them are capable of running several different programs at the same time, such as customer rewards cards and gift cards. They can authorize and accept cards, which can be swiped similar to credit and debit cards.
Some cards can also be reloaded with a gift card balance that is deducted upon every purchase. In addition, POS systems can easily integrate these programs with existing customer profiles in order to track expenses, preferences, and discount tiers or special gifts.
Benefits Of Loyalty Programs To Customers
Loyalty programs can be valuable to improve customer experience and build greater brand loyalty.
- Loyalty Programs Encourage Customer Retention – Recent statistics show that 50% of consumers mainly join a loyalty program to earn rewards on everyday purchases. In addition, 52% of American consumers will join the loyalty program of a brand they frequently buy from.
- Data Shows Trends You Can Use for Long-Term Planning – A POS loyalty program also provides valuable data related to customer purchasing behaviors. This can help your brand plan inventory and purchasing decision over the long term, cutting costs.
- Client Segmentation Allows For Precision Marketing – A POS with loyalty program allows brands to more directly target customers with deals that reward them for their behavior. For instance, those who spend more can be rewarded more often with greater discounts, building even greater loyalty over time.
- Increased Spend Per Visit – A 2020 McKinsey survey on loyalty programs found that paid loyalty programs increase consumer spending by 60%, while free loyalty programs boost the likelihood of increased spending by 30%.
- Effective Communication And Feedback – Finally, a POS system allows you to send special offers, timed promotions, new product releases, and customer feedback and reviews through one platform. This allows your business to refine sales and marketing strategies.
Challenges In Loyalty Programs
While there are many benefits of loyalty programs to customers, there are some factors to keep in mind when creating a loyalty program.
- Restricted Scope of Data – Some customers may be unwilling to share information about their shopping habits and may not want to sign up for a loyalty program.
- Past Behaviors Don't Determine Future Behavior – The data collected from a POS loyalty program might not be accurate due to natural changes in buying habits and trends.
- Lots Of Customer Loyalty Programs – The large number of loyalty programs launched by retailers may lead to a lack of engagement depending on your target market.
- Financial Impact Of Loyalty Programs For Customers – Offering too many coupon codes and sales for a loyalty program may negatively impact your bottom line if you’re not careful.
- Loyalty to the Customer Or Just Convenience – Some customers may not be truly loyal to the brand and may only be shopping due to factors such as a convenient location.
Best POS Loyalty Programs
Some of the top POS customer loyalty solutions include those from Square, Vend, and Lightspeed.
- Square Loyalty Program – Square Loyalty has a basic interface like their card reader and POS system with plenty of free features. Their pricing is based on how many loyalty visits you receive each month, which is a good option for smaller businesses.
- Vend – Vend includes their personalized loyalty program in their Pro package if it is billed annually. It includes promotions, gift cards, advanced inventory management, detailed reporting, API access, and other features.
- Lightspeed Retail – Lightspeed Loyalty offers a point-based system with multiple reward tiers in addition to marketing and CRM. It is useful for retailers who want to categorize customers based on spending habits, create a loyalty app, and offer limited deals.
Frequently Asked Questions
Here are some of the most commonly asked questions about the benefits of loyalty programs to customers.
What is POS loyalty program?
A POS loyalty program allows business owners to process sales and keep track of customers’ sales information to offer valuable rewards and discounts.
How do I choose the right POS loyalty program?
The right POS loyalty program varies depending on your needs, but some useful features include detailed reports, customized coupons, custom reward tiers, and more.
What are the different types of loyalty programs?
Some different loyalty program types include tiered programs, value-based programs, omnichannel loyalty programs, and paid programs.
Overall, rewarding customer loyalty can boost profits and allow your brand to grow and expand. Choosing a POS system that integrates customer data with loyalty programs can improve long-term planning and attract new customers.
Read on to learn about the top POS systems on Processing Card today!