3 Brick-and-Mortar Survival Tactics to Build Customer Loyalty

In today's modern world, individuals can shop for anything they need online—from the comfort of their homes. And now in most major cities, product deliveries can arrive within 24 hours of purchase. So why if it’s so simple, so fast to order online would any consumer want to bother with the inconvenience of driving to physical stores?

As the owner of a brick and mortar store, you need to find a way to compete with those online businesses and get customers through the doors. Having worked in the retail industry for 20+ years and specialized in customer loyalty solutions, I’ve been able to work directly with retail brands that have experimented with programs to attract and retain customers.

The businesses that have been most successful have utilized the following three strategies:

#1 - USE A LOW ANNUAL FEE

While it might seem a little crazy, I’ve seen how some businesses have found much success in charging their clientele a membership or annual fee in order to receive discounts.

GameStop, for example, was a retail business that experienced success through a paid loyalty program. For less than $20 a year, customers received discounts on products and other benefits. In the online space, Amazon introduced its Amazon Prime program as a way to reward frequent shoppers. Those shoppers pay slightly less than $100 a year to receive access to television shows and films they can watch online, free shipping on most purchases and other benefits.

Tip: Customers will pay for a good loyalty program that gives them frequent discounts and coupons that they can't find elsewhere. Make sure that those shoppers know the type of benefits that your paid program offers.

#2 - PARTNER WITH OTHER LOCAL BUSINESSES

Forming a partnership with another local business allows both sides to gain customers and increase sales. The key is complementary partnerships. It's important that businesses look for noncompeting companies that won't take away from their sales.

For example, a local pet grooming shop might partner with a veterinarian to give customers discounted prices when they use services from both companies. Many movie theaters form partnerships with local restaurants. Diners get discounted movie tickets, and movie lovers get discounts on the meals they eat after the movies.

Tip: Give some consideration to which products or services your customers use that you don't offer and get in touch with local businesses to see if a synergistic relationship is possible.

#3 - OFFER DIFFERENT REWARD TIERS

Several large airlines have tiered loyalty programs that give customers the chance to move up to a higher tier after spending money on flights and other travel costs. Smaller businesses can do something similar with tiered loyalty programs.

Give all customers the chance to join the loyalty program at the basic tier for free. This tier might come with a free coupon on their birthday and discounts every few months. After they spend a certain amount in store, the customer then moves to a higher tier, which unlocks better discounts or a premium level of service.

Tip: Consider giving customers the chance to win prizes when they shop. Those in the lowest tier can enter a contest for prizes when they hit a certain level of spending, and you can let frequent shoppers enter each time they make a purchase.

These are just a few ideas of how to build your brick and mortar business using customer loyalty as a retention tool. For those of you who are looking for a customer loyalty point-of-sale solution, I’d suggest checking out Retail Management Hero (RMH) Loyalty software.

About Anthony Ludmilin:

Anthony is an IT specialist with 25+ years of expertise and experience in a variety of technical fields – from network design to software development. He is the CEO & President of Retail Hero, a leading point-of-sale and customer loyalty software company.