---

Guest post by: Will Atkinson Become an Author

Tweet

---

---

In this down economy it's tempting to cut prices to compete with other small retailers as well as the big box stores, but this is a losing strategy. Think about it. If fewer people are shopping, and you choose to make a smaller margin on each item you sell, you have automatically reduced your potential profits even before the first customer comes through the door.

Instead of slashing prices, think about creatively rewarding your customers with a loyalty program that rewards them for the behavior that you want to see, as well as the behavior they like to exhibit. Said another way, make them feel special for buying the things they like to buy anyway.

This takes some careful tracking of customer purchases, and you definitely need to build a reliable customer database, but any point of sale system worth its salt will allow you to do this. Instead of pressuring your customers for their personal information, show them a clear benefit to signing up for the loyalty program.

Offer them targeted discounts on your high margin items, rather than cutting prices across the board.

Offer them special bundled promotions that are not available to the general shopping public.

Setup "Loyal Customer Days" or "Special Shopper Previews" and invite your best customers to attend private open houses or shopping days and reward them with a pampered experience. You can include private viewings, samples, and even niceties like food and drink that don't necessarily cost you a lot, but really enhance the shopping experience.

Loyalty programs can be more than just a cash reward or a discount on future purchases. Use your POS data to identify your top customers and make them feel truly special. They'll certainly notice, and they'll tell their friends, directly or indirectly, driving more business to your store.

Check out my profile to the side and visit the CAP website to learn more about POS and targeted loyalty programs.

Related Articles

  Revealed key elements of a successful customer loyalty programs
  Three Things Every Business Owner Should Know About Mobile Loyalty Programs
  Customer Loyalty
  Questions On Guest Loyalty
  Tips on Building Customer Loyalty
  Quiznos and Loyalty Clubs
  Fascinating Implications of New (Internal and External) Customer Loyalty Studies
  A Unique Simple to Implement Customer Loyalty Program
  Results are in of a new study...
  8 Questions to Ask Yourself in a Recession
  More Customer Loyalty
  Turning Loyalty Right-Side Up Again
  5 Thoughts On Guest Loyalty
  Entrepreneur Marketing Month: A Great Time to Start Text Marketing
  Most intimate marketing channel – the smartphone
  Loyalty
  Transitioning New Employees Into the Workplace with Employee Mentoring Programs
  IN THE CONTEXT OF CUSTOMER LOYALTY, NEW NIKE-TIGER WOODS COMMERCIAL IS ON POINT
  Is It's Never Too Late or Early to Build Customer Loyalty
  Franchise Success Through Loyalty Clubs

Related Forum Posts

Re: From Sales to Marketing
Re: Require Info on CAD Fed/Prov Grants for Restaurant Start-up
Any experience with McManus UK Ltd.?
Re: You don't need to go to a "real" school to get
HRPreneur

Share this article. Fund someone's dream.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Nicolas Cage loses Control

Top 10 Legit Ways To Make Money Online

Steps For Starting A Small Business

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.