Presenting

a smaller-ticket item or two as a gift to themselves while they're there. "Merchants are no longer off ering just incentives for purchases either," orndyke continues. "How we are rewarding customers has shifted. Beyond the 'point per dollar,' we're looking to off er rewards for completing customer surveys, attending events, referring a friend or following our page on social media because these actions all help our businesses grow. Retail fl orists and garden centers have really gained traction with posting seasonal items, beautiful plants, gardening/care tips and the like on their social media pages because consumers can see these items and shop from home—which has been increasingly important during the last year and a half. "It makes sense that these retailers would benefi t from growing their social audiences to keep engaging with customers even from their homes," orndyke adds. "So, we are seeing an increase in retailers asking to award points for customers who like/follow their Facebook/Twitter feeds, etc." Summing up, orndyke says, "Today, you can fi nd loyalty program software that connects with your existing POS systems or payment processors, automating customer transactions and saving time. For example, when collecting payment from a customer in your Square system, Shopify store or Details Flowers software, the transaction can be sent over to Loyalty Gator to add that transaction within the customer's loyalty account. Today's technology is bringing new possibilities for loyalty program providers, and merchants are getting really creative developing fun and unique ways to structure their customer rewards programs." S T A T I S T I C S P R O V E S U C C E S S The main objective of every loyalty program should be to increase the frequency of customer visits, which translates to program members increasing their spending over time. Research on the topic shows that loyalty program members not only spend more when they visit but they also visit stores where they are members 20 percent more than nonmembers who visit the same stores. When asked about statistics that prove loyalty program success, Thorndyke shares: Businesses can increase revenues 25 percent to 100 percent by retaining just 5 percent of their customer base. Customer spending is 46 percent higher with companies that offer rewards programs. Twenty-eight percent of customers are extremely likely to increase visits to businesses where they are a member of a loyalty program. "There are many stats related to how loyalty programs increase spending, increase traffi c and attract new customers," Thorndyke elaborates. While results will vary depending on the industry, incentives offered, etc., she adds, merchants will typically see best results with the following practices: Ensure your loyalty program is easy to use, accessible and convenient. Make your rewards fairly easily attainable. John will disengage with the program if he's collecting points for fi ve years before fi nally earning a free plant! Inform and excite your staff about your program. Create customer awareness in store and via social media, website, newsletters, etc., and highlight your loyalty program features. It's always nice to add a few bonus points for new members who sign up. Encourage customers to opt in to communications from you. Create custom fi elds to gain customer insights, and use these for personalized communications. Track which promotions are most popular and the rewards most selected by your customers so you can make adjustments to your program to refl ect enticing options. "Don't forget to grab an email address or phone number so you can remind your wedding clients ahead of their fi rst anniversary (and second and third) to add fl owers to their upcoming anniversary celebration," Thorndyke recommends. "I know many people, including myself, who would appreciate this notifi cation each year." Ultimately, a loyalty rewards program can be successful if it's designed to offer what your typical customers want. Helping customers understand the monetary value of every reward they receive often makes the program even more valuable to them. However, keep in mind that cultivating customer loyalty isn't always about giving away items for free. Also remember that loyalty programs are really about encouraging more customer visits and enticing customers to spend more money per visit, which allows the business to afford the costs of the items rewarded. When a loyalty program proves fi nancially benefi cial for customers and retailers alike, both are likely to receive continued rewards.

• Cover