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TADA Marketing & Customer Retention Blog

3 min read

Digital Stamps: The Perfect Loyalty Program for Small Businesses

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The Perfect Customer Loyalty Program for Small BusinessesWe all know that the most valuable customers are those who return to make a second purchase. Of course, the one-million-dollar question is: how to make your customers return to make their second purchase, and what is the best solution to achieve that for small businesses? These days, we see that most small businesses implement digital stamps as their loyalty program. Like any retention program, digital stamps or punch cards are designed to generate repeat business by offering some sort of reward after a number of stamps has been collected.

The question is: does it really work for small businesses? Our most recent studies revealed that digital stamps or punch cards are actually able to generate more traffic and retain up to 50% of the customers in the first half of 2021.

We conducted a study and analysis through our internal database that captured the existing data from our clients that use digital stamps as their loyalty program.

member addition month on month

The number of adding members grows significantly over the last 5 months. The figures actually tripled from the month of March to April and doubled in the following month. This indicates that many small businesses are interested to invest in the digital stamp as their retain programs and as a result, the number of members grows dramatically.

In terms of conversion, we need to know how many people actually made a transaction. From the data that we have gathered, out of 4,067 members that have registered, 69% of them have already made a transaction. Additionally, 420 members have redeemed their stamps and the total stamps that have been redeemed are 452 stamps.

Activity Funnel

Our internal data also reveals that digital stamp programs are very effective in making the customers return for their second purchase. From the last 5 months, the program is able to retain 61% of the total customers on average. This shows that 3 out of 5 customers are likely to return for their second purchase.

Transaction type new vs returning

Of course, all these numbers didn’t appear out of thin air. There are always ways to optimize your digital stamps loyalty program. Here are some tips to help you launch and promote your digital stamps program:

  1. On-premise signage
    If you have a physical location, marketing tools such as banners or tent cards are the best way to promote your loyalty program. People that come to your place might get interested in joining the program. Additionally, you can include additional signs on your POS since it will be the point of contact between you and your customers.

  2. Staff
    When you launch your loyalty program, it’s important to brief your staff as well as to provide them with some guides on how to pitch to customers about the program. In most cases we find that the most performing programs come from a clear line of communications between the operational staff and the managerial level. Your job as a business owner is to make sure that your staff understands about the program.

  3. Social Media
    Leveraging your social media should become one of your check lists every time you promote something new, including your newly launched loyalty program. Boost your Instagram post to reach more accounts and make sure to create a consistent and creative message to promote your loyalty program.

  4. Retargeting Ads
    Retargeting is basically a way of getting your message in front of a targeted audience on a platform that you don’t own (such as Facebook and Instagram). Targeting lookalike audiences based on your current database can help you reach out to more potential customers to join your loyalty program. Don’t forget to allocate your budget accordingly for your ad to maximize your Return on Investment (ROI).

All in all, the data shows that digital stamps are the easiest, most scalable, and trackable loyalty program for any business (especially small business). That said, your loyalty program will not run itself overnight, a comprehensive marketing strategy is also needed to make the best out of the result.

TADA has helped more than 400+ brands to capture, connect, and reward their customers automatically. Now it’s your time to provide the best gifts for your customers. Click now and contact our team to learn more about how we can help you create a loyalty program.

Aloysius Brahmarsi
By Aloysius Brahmarsi

A Product Manager with a curious mind whose sole purpose is to keep learning new things in life. Digital product & marketing enthusiast

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