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Why All Grocers Need Customer Loyalty Software


Did you know that, for 61 percent of small business owners, over half of their venture’s annual revenue was from repeat customers?

Or that a five percent increase in customer retention results in, on average, a 25 percent boost in business profits, according to business consulting firm Bain? 

Here’s another statistic for you, though – only 34 percent of small business owners utilize a loyalty program system. Out of those that do, the majority use offline loyalty programs, which can’t offer real-time inventory analytics or customer insights. 

Essentially, customer loyalty programs can help you set your grocery apart from the competition. Read on for perks and features customer loyalty software can bring to your small business!  

Encourage Shoppers to Spend Big 

The number one perk of a loyalty program system is that it rewards, well, loyalty. Customer reward programs incentivize the casual shopper to become a return client. Why is this significant? For one thing, repeat customers tend to spend 67 percent more than one-time shoppers. So, having more repeat customers means a higher profit margin for your grocery. 

There are many perks customer loyalty software provides to meet this end. A simple points system works wonders – a customer racks up points every time they purchase items from your grocery, with a certain number of points resulting in big savings or a free item. 

Another method can be auto-entry into raffle programs with prizes such as a monetary contribution towards the customer’s next grocery run. Personalized coupons redeemable solely by customers signed up for the loyalty program are also a great way to make loyal customers feel special – and encourage them to drop some major cash. 

Collect Customer Data 

Customer loyalty software can be a great way to access data about your shoppers that you would not be able to collect otherwise. When customers join a loyalty program system, they enter a range of information into your database, from age to zip code. Access to that information can be invaluable; for example, if a majority of your customers live in affluent zip codes, or areas with a high average salary, you may be wise to raise grocery prices. 

You won’t just gather demographic information through a customer loyalty program. You can also obtain access to shopping histories. This will allow you to adjust your inventory orders to maximize your profits, and can also help you target your marketing campaigns. Notice that a product is beloved by women in their thirties? Launch a demographic-specific marketing campaign to capitalize on your product’s popularity! 

Quantitative data is great, but a loyalty program can also allow you to collect concrete feedback and suggestions from your customers. A simple survey can help gather this data – and an incentive or reward for surveyed customers doesn’t hurt either. 

Generate New Clientele 

An overlooked feature of customer loyalty software is its ability to generate new customers through the use of referral points. A referral program, promising certain savings, raffle drawings, or cash prizes to those who refer new clientele, is a great feature of customer loyalty software. Incentivizing your return customers to refer your grocery store to others and help you build a new class of clientele can have major returns. 

So, what are the financial benefits of a referred customer? According to a study conducted by The Wharton School, a referred customer, on average, is 4.5 cents more profitable per day than non-referred customers. They’re also more loyal – the rate at which referred customers desert to competitors is 18 percent lower than that of non-referred customers. 

A program that generates referred customers is clearly profitable – but it has other, less tangible benefits as well. Customers who refer friends and family to your grocery are performing an act of faith in your brand, and boosting your brand’s reputation. As a small business owner, you are likely well aware of how invaluable a great brand reputation is. And, of course, referral programs take away some of the burden of generating new customers through marketing campaign efforts. 

Customer Loyalty Software and Your Grocery

The importance of customer loyalty software for grocers cannot be overstated, with benefits like maximized profits, new clientele, and a wealth of useful customer data. So, what are you waiting for? 

Implementing customer loyalty software can be scary. That’s where a solid point of sale solution comes in. For example, our POS system, Markt POS, comes with  baked-in customer loyalty software that can be easily integrated with any existing software your grocery has. If Markt POS sounds like a solution you’d like to know more about, there’s an easy way to explore. Simply schedule a live software demo with our team to start reaping the rewards of customer loyalty software!

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