Business owners know that retaining their customers and gaining new ones is important for growth. And so there is a constant need to be better at advertising and making sure the business becomes a part of their customer’s lives. What better way do such thing other than by rewarding them for continued business?
Carrying a keytag or punchcard has become old-fashioned and if the customer leaves it at home, they cannot participate in any incentives and this results in an abandoning of their shopping carts leading to a decrease in sales; bad for business. The next generation will not know what a wallet or keytag is. They will have everything on their phone. As business owners see that their customers are relying on their phones to do more, it is a wise decision to allow their business to communicate to their customers using updated systems.
Setting up a beacon and implementing loyalty programs are ways a business can do this. A beacon is a small device which emits a signal via Bluetooth to cell phones in a business. The consumer has a choice to opt into a loyalty program, via the app, which will reward them each time they come into the business. As a consumer walks onto a site, a beacon sends messages such as coupons and other alerts to the mobile device. And depending on which area of the store they frequent and the types of purchases they make, each message is customized to the consumer. The owner and staff can identify if the customer is new or a regular and shopping, now, becomes a personal experience. The consumer rarely has to present information about themselves because it’s already in the app and their shopping experience is customized based on their personal activity. This app replaces the conventional keytag and the customer can still access their points. This will help to keep customers coming back. For example, if a customer spends $200 in electronics they earn additional points or a discount towards their next electronic purchase. Knowing this, the consumer will want to come back so that they can redeem their points, thereby increasing revenue for the business. Through loyalty programs business owners can expect shoppers to spend more money. Interaction between the business and consumer is encouraged through the app as well.
Because the consumer can communicate through the app, businesses can determine which products are a hit or miss. By gaining insight on the likes and dislikes consumers have, a business can choose to incorporate incentives to increase sales and traffic into the store or discontinue certain products. For example, the consumer in a department store is shown to frequent the electronics department. Their feedback through the app will help the owners determine which products in that section garners more purchases, which then helps them to maintain their inventory. On the other hand, it can tell business owners which products are not selling.
The beacon helps the customer in that it helps track their current points right on their mobile device. They don’t have to be concerned about the keytag or punchcard that was left behind because everything is on hand. And a pending transaction becomes a completed one. Having the beacon in place not only helps the business retain existing customers but also gain new ones. Customers that know there is something to gain from one establishment will become frequent shoppers compared to going to a shop where there is nothing to gain. Not to mention, the appeal a beacon has to tech-savvy shoppers.
Tech-savvy customers will appreciate the fact that businesses choose to stay on the cutting edge of technology and therefore will shop more at that location. And the tech-savvy are the ones that will not be carrying around physical coupons. Shoppers that are accustomed to using their mobile devices to aid in shopping will be turned off from going into a shop that doesn’t accept or cannot accommodate mobile devices.
The question is: what does a business have to gain by adding a beacon and loyalty program? Everything.