Value-added Services: How Merchant Services Can Unlock New Revenue Streams by Offering Loyalty Rewards
Across the competitive payments landscape , customer loyalty is often based on price. For Merchant Services companies looking to distinguish their brand, expand solutions, and boost profits - offering loyalty programs can be a game-changing strategy.
Loyalty rewards like credit-back, collected stamps, and personalised product and basket-level discounts can cultivate a sense of value and appreciation among a merchant’s customer base, encouraging repeat business, while fostering long-term client satisfaction for the merchant services provider.
As Merchant Services explores loyalty rewards, integrating them as a customer-centric, value-added service can be a key differentiator in an increasingly competitive market. However, it's crucial to note that developing and maintaining these technologies in-house can be resource-intensive. Partnering with LoyLap offers merchant service providers a cost-effective solution, avoiding development expenses, reducing operational burdens, and enabling them to stay focused on their core services, all while LoyLap handles ongoing maintenance and customer support.
So, go ahead and read our blog to discover how our unique loyalty rewards can boost customer retention and repeat business for your merchants, creating a new revenue stream for your company while also nurturing long-term relationships with your portfolio of clients. ✌️😊
Credit Back: The Art of Giving to Incentivise the Right Behaviour
One of the most effective ways to boost customer loyalty is by offering credit-back rewards. This system allows customers to earn a percentage of their purchase amount as credit back, which can be used on future transactions.
By providing tangible benefits for basket and product level purchases, businesses show genuine appreciation for their customers' loyalty. This not only incentivises repeat business but also establishes a strong relationship between the customer and the business, creating a win-win scenario for both parties.
Collected Stamps: Building Excitement for Repeat Purchases
The simplicity and effectiveness of stamp collection as a loyalty reward cannot be overstated. Each purchase earns a customer a stamp, and upon reaching a certain threshold, the customer redeems their stamps for free items such as low priced items with high frequency purchases. Think coffee, tea, cookies, or milkshakes.
This approach not only adds an element of excitement to the customer experience but also keeps them engaged and eager to return to collect more stamps. The anticipation of unlocking a reward creates a positive association with the business, encouraging frequent visits and a stronger sense of loyalty to the brand.
Personalised Product and Basket-Level Discounts: Tailoring Rewards for Individual Preferences
A personalised approach to loyalty rewards can significantly impact customer retention. By incorporating purchasing history and customer preferences, businesses can customise product and basket-level discounts. This means customers receive discounts on items they frequently purchase or those complementary to their preferences. This tailored approach not only makes customers feel understood and valued but also increases the likelihood of making additional purchases, boosting overall revenue for merchants.
Loyalty Programs Boosted by Advanced Analytics: The Key Functionality to Merchant Retention
In essence, these loyalty program features go beyond simple transactions, transforming each customer interaction into an opportunity for relationship-building. By making customers feel appreciated for choosing a particular business over the competition, businesses create a genuine connection that goes beyond the transactional aspect, encouraging customers to revisit a shop. This multiplies opportunities for new purchases and lays the foundation for a strong and enduring relationship that benefits both, merchants and merchant service providers alike.
In addition to providing Loyalty Rewards, LoyLap also equips merchants with advanced analytics to better understand their current customer loyalty strategies. With the ability to track rewards, redemptions, usage, and current and past users, merchants can adapt factors such as the percentage amount of credit-back, type of rewards, or the amount of collected stamps. Small changes like these can drastically improve the customer interaction with the loyalty program, resulting in more repeat purchases and increased profits.
Remember, by understanding and leveraging these trends, your company can provide enhanced payment experiences, drive client satisfaction, and position yourself for success in the competitive market of digital payments. Plus, the added benefit of enjoying recurring revenue for every customer transaction. Who doesn't love that? 😅
Reach out today to start discussing a partnership with us that enables your current and future merchants to work with loyalty rewards.