As a retailer, you want loyal customers because you want to increase your store’s overall revenue. But it takes more than fun campaigns and discounts to spark customer loyalty, for two reasons:

• Using incentives to attract new customers can be a big waste of money, unless you convert those first-timers into repeat buyers. Customers who are only interested in getting a cheap deal will never be loyal to your brand (unless you are the “area’s biggest discounter”).
• There are significant psychological factors that drive loyalty, and these factors can be more meaningful to customers than discounts.

You must consistently deliver:

• The highest value possible – dependable quality for the price.
• Friendly, personalized customer service, both in-store and through your marketing. Targeted emails, tweets, etc., alert customers to your store’s upcoming happenings and merchandise introductions. And, yes, you can also send them exclusive offers.

Soliciting feedback builds loyalty, too. Everyone loves to give their opinion – that’s why social media has flourished. But when you ask for it, you’re creating a sort of partnership with customers. And when you act on their suggestions to improve or expand services or merchandise lines, they will be ecstatic.

Create a formal loyalty rewards program.

These programs work, but only if your loyalty program actually adds value. It has to be easy to understand and use, with rewards that are desirable and attainable. This point is critical, because you won’t generate loyalty if customers don’t actually use your program.

Offer informal, open-to-everyone promotions and incentives.

Make buying more meaningful. For example, your pet supply store could donate to the local shelter every time a certain product is purchased.

Bring customers together for a value-added, in-store event. For example, your sporting goods store could host a gear swap (with plenty of new merchandise featured, too). 

Provide incentives at checkout that encourage repeat buying. That could be a discount on their next purchase, but greater creativity will bring you greater response. So offer goodies your customers cannot get from competitors. Things that give them added value, such as:

• Special access to sales or other events.
• Special privileges such as free shipping. (By the way, free shipping of online orders is now one of the most popular – even demanded – perks for customers.) If you don’t have an e-commerce channel, think about another service you could substitute to reward loyalty.
• Gift with purchase. Who doesn’t like to get something for free? Besides, samples and giveaways are an excellent way to boost future sales by introducing customers to new products. 

Create a “wheel of fortune” that customers can spin before they check out, to perhaps win an instant discount or gift. 

What’s the simplest – and best – incentive of all?

Saying thank you. Presumably you thank customers as they leave your store. But you’ll really wow them if you send out a random email that says, “Thanks for being our customer.” You don’t even have to attach a gift. Sending a birthday greeting is an even more personalized way to reinforce your relationship with loyal customers.

Whatever you do, make it all about your customer to spark maximum loyalty.