Loyalty Tip #10: Higher Loyalty Means Higher Cost to Switch

Oddly enough, people grow emotionally attached to the stores where they shop, and switching stores affects the brain like a lost love. This is the “cost to switch.” The longer a person visits the same store, the bigger the heartbreak if they switch their spending pattern.

Enter Hero Points, a loyalty program in which people collect points for purchases that they can redeem for gifts and discounts.  The points act like flowers and chocolates, and the point redemptions are diamond necklaces. Shoppers grow attached far faster to a store that uses customer loyalty than to one that doesn’t, and they are more likely to maintain the relationship.

Use Hero Points to start a long-term relationship with your customers. With it, not only do customers return to the store more often, they’re also less willing to switch. The heartbreak of losing points and gift redemptions is too much, so they come to you instead of seeking out your competitors.

Testimonial: Hero Points

"During the first year of our loyalty program, we have found that our loyalty card holders spend 120% more per visit than our average customer. Currently, 60% of our cardholders shop with us on a regular basis, and the average number of visits per month is increasing steadily. Year to date, almost 15% of our total revenue can be attributed to purchases by loyalty card holders. Implementing a loyalty program has also allowed us to increase the size of our customer mailing list fivefold."
- Bryan Eias, Marketing Manager, D Rite Stuff, a Hero Points user.

What Are Retail Hero's Customer Loyalty Tips?

At Retail Hero, our passion is making local retailers more profitable through customer loyalty, so that in turn they can make a difference in their community. We believe that customer loyalty is the vehicle for this difference.

We learned how retail customer loyalty works while we were developing Hero Points. Every revision comes after we learn more about how it works.

We want to share what we’ve learned with you. That’s why we’re starting a Customer Loyalty Tips newsletter where we’ll send you hints and advice for making and keeping customers for life. We’ll send you our passion.

The tip you read above was a sample of the type of information that you will receive. Read them, and sign up for our Customer Loyalty Tips newsletter to receive more of them in the future.

Retail Hero are the customer loyalty experts, with the first implementation of Hero Points in 2005. Since then, the software has undergone several revisions and hundreds of installations worldwide to become the powerful customer loyalty platform that it is today.

You are receiving Loyalty Tips because you are a subscriber for Retail Hero’s newsletter. But soon, we will separate this communication from the newsletter. Sign up here to receive Customer Loyalty Tips in the future.

Or contact Retail Hero now to learn how Hero Points Customer Loyalty will let you make your good customers loyal.