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Florists' Review - October 2021

Florists' Review Media Group has served the global floral in study for over 124 years.

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Business 54 of Loyalty Gator, a customer loyalty program software provider in Toronto, Ont., Canada, reports, "When Loyalty Gator launched in 2010, we weren't seeing as many small businesses utilizing comprehensive loyalty rewards programs for their customers. Airlines and large franchises were taking advantage of incentive programs, but for many small businesses, it was the paper punch card to buy five of something and get one free, or plastic VIP cards relying on spreadsheet entries with limited data collection ability. "At its core," orndyke continues, "a loyalty program rewards customers for actions, spending, referrals or other desired behavior. Merchants utilize these programs in diff erent ways to show appreciation for their customers, attract new customers, and also gain insight into their patrons' preferences and spending behaviors. A good loyalty program will allow you to collect customized customer profi le data as well as specifi c transaction info so you can customize a loyalty program that is engaging for your customers." CHANGES IN LOYALTY PROGRAMS e value of a loyalty program begins when a business starts getting customers signed up for the program, which ideally, should be the fi rst time a customer walks into a store. It's important to keep in mind that a well-designed loyalty program is going to add value to every new or existing customer and keep each one eager to remain a member of the program. Statistics on customer acquisition show that it costs six to seven times more to acquire a new customer than it does to keep an existing customer, yet both are just as important to the success of a loyalty program. Considering some of the challenges faced by loyalty programs of the past, technological advances have made today's loyalty programs more business and customer friendly. Andrew-Lewis points out, "When KRS began providing loyalty program solutions for retailers 20 years ago, most programs could not fully integrate into point-of-sale (POS) systems; they were just not set up for this. Retailers had to use dial-up credit-card terminals to award points and club punches. While they were able to tell how much customers were spending and how often they were coming in, they were still unable to see what products customers were purchasing. is functionality was a step up from their old punch-card programs—but not ideal. "Today's programs fully integrate into POS systems, allowing retailers to provide instant discounts to customers based on their buying habits and product preferences, Andrew-Lewis continues. "Rewards can be unique to each customer. For instance, retailers can award specifi c customers bonus points or a free item on their birthdays. e ability to send the right off er to the right customer at the right time signifi cantly impacts consumer buying habits. is type of targeted marketing results in a more personalized user experience that customers appreciate." Today's cardless programs and loyalty apps off er more customization options for merchants and more communication with their customers; they are smarter loyalty programs. "When you're able to gather specifi c customer data and provide relevant communications, you're ultimately bringing a better shopping experience to your customers," orndyke reports. " e old paper punch cards encouraged customers to return, but all you really knew was that John liked plants. Imagine, instead, knowing that John has a cat, so pet-friendly plants would be important to him. Or that Jane purchases festive arrangements in the wintertime, so she would be a great guest to invite to your next holiday wreath workshop (and tell her to bring a friend). Inviting loyalty program members to pick up a free rose on their birthdays adds something special to their day—and maybe they'll even grab it does to keep an existing customer, yet both are just as important to the challenges faced by loyalty programs of the past, technological advances have made today's loyalty programs more business and customer friendly. Andrew-Lewis points out, "When KRS began providing loyalty program solutions for retailers 20 years ago, most programs could not fully integrate into point-of-sale (POS) systems; they were just not set up for this. Retailers had to use dial-up credit-card terminals to award points and club punches. While they were able to tell how much how often they were coming in, they were still unable to see what products customers were purchasing. is functionality was a step up from their old punch-card programs—but not ideal. "Today's programs fully integrate into POS systems, allowing retailers to provide instant discounts to customers based on their buying habits and product preferences, Andrew-Lewis continues. "Rewards can be unique to each customer. For instance, retailers communications, you're ultimately Happy Bir day t ou favorit custome

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