May 18, 2024

OHT-Fashion

Clothes that smile

How to Recession-Proof Your Retail Business Without Raising Prices

How to Recession-Proof Your Retail Business Without Raising Prices

1. Launch or ramp up a rewards program

The best loyalty programs are about rewarding your customers for their loyalty to your business. It’s still possible to start a rewards program – or to refresh an existing one. But what exactly makes a good loyalty program are typically its benefits. If the benefits you offer are relevant and not unreasonably unattainable, customers will likely feel compelled to trust you repeatedly. The most common types of loyalty programs are as follows:

  • Points programs
  • Cash back programs
  • Tiered programs
  • Threshold programs
  • Punch card programs
  • Gamification programs
  • Pay-per-membership programs

For all their benefits, loyalty programs are only suitable for some businesses. To determine if a loyalty program is right for your business, you’ll need to answer the following questions: How often do people buy your product or service? What is the average purchase amount from your brand? What is your company’s market? 

A great loyalty program should also be easy to find, sign up for, and use. Customers need to feel empowered and confident to enroll and redeem their rewards without too much trouble. If your current loyalty program is less popular than you’d like, consider re-evaluating your benefits, ease of use, and marketing strategies.

For example, Annmarie Gianni, a small business specializing in skincare and beauty products, created a customer loyalty program based on a series of attractive offers to customers who took the “What’s Your Skin Score” quiz placed on their website. Among other things, they offered a sample kit at a promotional price, free shipping, a free ebook, a $10 promotional code for the next purchase, and a money-back guarantee.

You can also look at Sephora’s Beauty Insider program to get an idea of how to structure the rewards.