It’s common knowledge that the best customer is a return customer. Not only do return customers visit your liquor store more frequently, they buy more when they do.
Business consulting firm Bain reports that repeat customers spend 67 percent more than their one-time counterparts. In fact, a five percent increase in customer retention can provide more than a 25 percent boost in liquor store profits!
The importance of a liquor store loyalty program cannot be overstated – but less than 35 percent of small business owners have one. So, to get a liquor store loyalty program is to set yourself apart from the competition.
Still not convinced? Read on to learn about all the perks a loyalty program can bring to your liquor store.
Capitalize on a Casual Shopper
A customer loyalty program will incentivize casual shoppers at your store to come back for more. These programs offer rewards in many forms: Customers can rack up points every time they purchase liquor from your store to garner savings when they shop, or win prizes via access to giveaways or raffle drawings. These benefits can be enough to turn a casual shopper into a return customer, which is a win for your store’s profits.
A customer loyalty program can also increase the amount customers spend. Even if a customer doesn’t intend to drop a lot of cash, loyalty perks can turn a low-key shopper into a big spender.
A great example is a liquor store punch card system: Once a customer has purchased a certain number of liquor bottles, they earn one for free. This incentivizes customers to spend more in order to receive a free reward.
Buy-One-Get-One (BOGO) promotions can achieve the same objective — offer a free shot glass or bottle opener when customers make a specific purchase, or get a free bottle of wine when you purchase two.
Essentially, a loyalty program that offers customers deals they can't resist will garner you a dedicated clientele that is ready to spend.
Gather Customer Data
An often overlooked use of loyalty programs is the collection of customer information. You can easily gain access to your shoppers’ birth dates, phone numbers, email addresses, and zip codes (upon request, of course). You will also be able to access data on your customers’ shopping and purchasing habits, which is tracked on your point of sale.
Using this data, you can make adjustments to your marketing and inventory strategies that will benefit your business and your bottom line. Your customers’ purchase histories can inform your inventory orders, ensuring that your product levels will maximize your profits and minimize your losses. You can also use purchase history to send your customers personalized coupons and promotions for specific items they’ve bought before.
Boost Your Small Business’ Reputation
A liquor store loyalty program can do great things for your brand’s reputation.
This strategy is twofold: Firstly, when customers are rewarded through loyalty programs and associate your store with great deals and phenomenal customer service, they’re more likely to act as brand ambassadors and refer your store to others. Secondly, your loyalty program may incorporate a referral reward program, further incentivizing loyal customers to direct new clientele to your liquor store and boost your liquor store to their friends and family.
The referral system is tried, true, and supported by several studies. Per The Wharton School, on average, a referred customer is 4.5 cents more profitable per day than a non-referred customer. Factor in that the speed at which referred customers leave for competitors is 18 percent slower than non-referred customers, and the benefit of referral programs become extremely clear.
A fun and simple way to boost your reputation is to incentivize customers to post on social media. Give loyalty program members 10 percent off of their purchase if they take a photo and post it on Facebook or Instagram, tagging your liquor store. Your customer’s friends and family will see this content and be more likely to stop into your liquor store knowing that a connection of theirs enjoys shopping there.
Liquor Store Loyalty Programs and Your Small Business
Customer loyalty is important for any retailer, but it’s a must for liquor stores.
The best way to implement a loyalty program into your store is by using a point of sale solution that comes equipped with data collection and reward features. Make sure that your POS provider includes a loyalty program integration free of charge, and offers features to help facilitate and design your marketing campaigns.
Bottle POS offers a baked-in liquor store loyalty program that collects customers information and purchase history data, helping you create personalized coupons and new product alerts for your customer base.
Interested in a point of sale solution with an advanced customer loyalty program included from day one? Schedule a live software demo with our team at Bottle POS to keep your customers happy and coming back for more!
