Growing up, I always wanted to frequent a place so much to where I could come in and they could ask me if I wanted “the usual”. It could have been a restaurant, a coffee shop, or even a stationary store – I didn’t care. I wanted to have a rapport with the folks running a place and get to know them so I could be deemed a “regular” in the eyes of the other patrons, like the people from TV and movies.

While being the “Norm” of a particular establishment is a goal rarely continued into adulthood for most customers, business owners should make acquiring as many “Norms” as possible their paramount goal. Repeat customers are a crucial component of any successful business, and with the increasing prevalence of online shopping, it’s critical for brick-and-mortar businesses. More and more large and small businesses alike are looking toward implementing customer loyalty programs to reward their “Norms” and other repeat buyers, and to incentivize them to keep coming back for more.

Why Rewarding Customers for Repeat Business is Smart Business – Especially for Brick-and-Mortars

Getting new customers is key to any business of any type, but the value of keeping those customers is key as well. Once a customer has come through your doors, sampled your wares and like what he or she has experienced, odds are they will come back for more, because they need and/or want what you sell, and because you do it in a more efficient/pleasing/unique style than that of your competition.

As a repeat customer, you do not need to spend any time or effort advertising to them since they are already keenly aware of you, which saves money. You can offer them your premium-priced goods and services as they are much less likely to be sensitive to your prices as a return customer, which can increase your revenue. You don’t need to spend any time at all educating them on your business, your practices, your variety of goods offered or your philosophy because you have already done that, which saves you time. If they are happy with your services (which odds are they will be if they’re coming back into your store), they will also offer potential word-of-mouth advertisement to their friends and family about the positive experiences they had at your business, which is invaluable.

The values of repeat customers might seem a little obvious, but why are they more important to brick-and-mortars?

Why should a physical store that sells fishing bait and lures value a loyal customer more so than an online retailer offering the same items? The answer lies in how the goods are purchased. Although online merchants and service providers highly covet repeat customers, brick-and-mortars have the extra obstacle of physical distance to overcome. Unless you’re running a corner bodega in New York and all of your customers who frequent your store do so only because it’s directly under or right across the street from their apartment, your customers are making a trip of physical distance to get through your doors. Whether it’s right on the way to and from work or in a neighboring town altogether, it requires your customer to traverse physical space.

In this day and age, any barrier to convenience can be a MAJOR one, especially for the young 20-somethings that have only known a world with Amazon and other online retailers delivering anything their heart could desire with the few strokes of the keyboard. That is why it is crucial for brick-and-mortars to do everything in their power to keep customers coming back for more.

Depending on the type of business you have, there are a few different options. Maybe you can offer free coffee, snacks, and other refreshments to anyone that comes through the door. Aesthetics are always important, as is character – making your physical store space stand out with a pleasing aesthetic or a unique appeal is a good idea as it keeps the experience memorable in the consumer’s mind. And without question, top-notch customer service is a must, from you as the business owner all the way down the chain of command to the lowest rungs. The quickest way to get somebody to say “Ehh, I’ll just buy it online” is for them to have a negative interaction with you or a member of your staff. And of course, the old adage of “location, location, location” always rings true – while it may be burdensome to pack up and move your entire business, definitely consider heavily trafficked commuter routes and popular foot-traffic stops nearby when selecting your initial location.

The above are all great notions to keep in mind when trying to win over your customers, but one that more and more businesses are implementing these days is loyalty programs. In their essence, loyalty reward programs offer incentives for customers to purchase more items more often. They come in a remarkably wide variety – popular ones include: in-store rewards (“Buy nine cups of coffee and the tenth is free”); cash back on purchases; and point accumulation (rack up points by spending more and use those points to get goodies). If the program is effective, enticing, and valuable enough to the consumer, he or she will enroll and start earning rewards for their repeat purchasing.

The reason loyalty reward programs have become so exceedingly popular is because they are truly, without question, a win for both the business and the customer.

Why It’s a Win for the Customer

If your business is a lure shop (to stick with the above example mentioned), the majority of customers that come through your door are going to be folks who enjoy fishing. Sure, there will be the occasional neophyte that’s just in there to get some bait for Pops on Father’s Day, but by and large, the people in your store are people who want what you’re selling on a regular basis. They are going to be buying the things you’re selling anyway, regardless of whether they do it in your store, at a different brick-and-mortar fishing supply store or online.

If the location is convenient, if the customer service is great and it’s a fun, unique experience, the customer would be likely to come back in the future…but if they are going to be rewarded for coming back in the future, it’s almost a no-brainer for them. They already know they can find what they’re looking for here in a place that’s agreeable, and if they can earn significant discounts on purchases or get completely free items down the road just for buying what they would have anyway, why wouldn’t they come back? Plus, there is also the feeling of inclusivity, and even superiority, that comes with unlocking rewards from your purchasing habits.

You can’t help but feel cool and part of an elite in-club when you plunk down a loyalty card and get a major reward without spending a dime – you’re the envy of everyone else in line who wonders “How on earth did they manage that?” And while it’s not 100% “free” since you did have to purchase things in order to unlock that major, top-tier reward, you were going to purchase the items anyway, so it’s essentially gratis.

Why It’s a Win for the Business Owner

We’ve already covered above the value that a repeat customer brings to your business. They save you money, they save you time, they are more efficient when coming through your doors, and perhaps most importantly of all, they can serve as evangelists once they leave your business. But loyalty reward programs also offer increased insight into your customers’ spending and purchasing patterns. They will allow you to experiment on what methods of promotions and rewards are most effective – you could try a “Buy four, get one free” promotion to loyalty card members on a particular item, then try the exact same promotion down the road with a different item to see which is more effective. With increased data and purchasing knowledge comes more honed and ultimately successful promotions, both for your loyalty members and your customers at-large.

Brick-and-mortar local businesses can have a customer loyalty advantage

Owning and operating a brick-and-mortar business has its challenges when compared to their online counterparts, especially in the realm of convenience, but they also offer distinct advantages. While a seamless online experience is awesome, going into a physical storefront, getting exactly what you want without any hassle, interacting with a great staff and being on your way cannot be replicated online.

Even the biggest of repeat online customers never get greeted at the virtual “door” with the entire store yelling their name as they walk in…well, to be honest, that’s not likely to happen at most brick-and-mortars either. But just because you won’t have a dozen “Norms” walking through your doors each month, doesn’t mean that you shouldn’t do everything you can to build and reward your customers’ loyalty and turn them into repeat customers.