This Clover cafe built a killer customer loyalty program. You can, too.

November 6, 2018

Building up a business from scratch is no cake-walk, as Patrick Yeh can attest to. Having grown up in Taiwan, he wanted to reconnect with his culture and bring some of his family heritage to his new hometown—New York. What better way than through serving tea—a traditional way to bond with family and friends.

At first, developing his products and launching the business was exhausting, with a lot of late nights as he perfected recipes. Now, Bar Pa Tea attracts avid fans with long lines in the Nolita neighborhood of New York—phenomenal growth Patrick attributes in part to his customer loyalty program.

Loyalty programs are inexpensive to put together and can make a huge difference in your business’s growth. Just take a look at what Bar Pa Tea was able to achieve with Clover’s free apps Rewards and Promos.

“With Clover Rewards I see a lot more customer loyalty,” says Patrick. “It gives me a lot more options to do the promotions like a welcome bonus, V.I.P bonus, and also birthday bonuses.”

Why Build a Loyalty Rewards Program?

Research shows that the probability of selling to a new customer is 20%, but selling to an existing customer has a probability of 70%. If that isn’t enough to get you thinking about a loyalty program, consider that the same study shows that it costs up to 5 times as much to attract a new customer than it takes to keep an existing one.

What can a loyalty program can do for your business? It can:

  • Boost your revenue: tempting your fans back in for more sales.
  • Attract more attention: aficionados raving about your business helps attract new customers through word-of-mouth marketing.
  • Save money: by marketing to customers already in your database.
  • Stabilize cashflow: maintain a steady flow of income as “regulars” keep coming back.
  • Fine-tune your promotions: you’ll learn more about your best customers so you can target “look-alike” customers with similar demographics.

Visits or $$$? Deciding How to Structure Your Loyalty Rewards Program

Reward programs are not just to engage loyal customers and entice them to spend more money with you. They also need to make sense for your business. Consider what your primary goals are. Will you use rewards to spark interest in new products or to keep your bread and butter items flowing off the shelves? Do you want to encourage spending specific amounts or are you trying to increase foot traffic during slower periods? How you structure your loyalty program depends on what you’re trying to achieve. Check out these articles to make sure your loyalty program is growing your business:

Make Your Loyalty Program Simple, but Irresistible

What gets folks to sign up for a rewards program? According to research,

  • 73% of consumers said rewards must be relevant.
  • 68% said rewards must be easy to redeem.
  • 55% said the program must be easy to understand and use.

Loyalty programs must also be simple enough for employees to implement quickly and without interruption to the business. “It’s easy to train employees to use Clover,” says Bar Pa Tea’s manager Raymond, because the app works right on the device.

Clover’s apps integrate with the Clover system so you can see how well you’re doing instantaneously. “I also love the mobile app,” says Patrick. “I can check which employee is using it and how many sales are generating in real time.”

What makes loyalty programs relevant to customers? Check out stats on program personalization preferences in our Business trends & research roundup: Loyalty programs.

Use Your Passion to Create Unique Loyalty Offers

“You have to put your passion and love into what you’re making,” says Patrick. “That way you can come up with something that’s unique and really special.”

Passion is contagious and breeds a loyal following. Go beyond freebies to offer unique access and exclusive experiences. Want more ideas? Check out our best advice on diversifying your loyalty program:

Turn Spikes in Foot Traffic into More Loyal Customers

Consider seasonal shifts in foot traffic and use them to spark interest in your loyalty program. Are there times of the day when commuters or foot traffic suddenly goes up? What would entice them to sign up for a loyalty program? Is your business a taffy shop by the sea shore and mostly booming during summer months? Offer an incentive for customers to sign up and you can market to them throughout the year. (Who doesn’t want a piece of summer when it’s sleeting outside?)

Also see How to use loyalty marketing to turn new holiday foot traffic into loyal repeat customers.

Troubleshooting Your Loyalty Rewards Program

The lines are around the block, and foot traffic is decent even during slow periods, yet you don’t see the kind of business growth you’re expecting or revenue has flattened. Loyalty programs have the potential to increase sales by 20% or more, but they can also drain your profits if not structured in a way that encourages purchases.

Check out 4 possible solutions to overly expensive programs. Plus, find out how to reduce loyalty program fraud to make sure you’re not losing money unnecessarily.

Get started with Clover’s free apps Rewards and Promos. With Clover in your corner you can turn your most valuable customers into regulars.

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