No loyalty? 3 reasons why this is a problem for your business


Many small businesses have yet to implement a loyalty programme. This can be a serious problem. In this blog, we will discuss the 3 key things your business is missing out on if you do not have an efficient loyalty programme.

1. Without an effective loyalty programme, you end up wasting your time and efforts on landing new customers when existing ones will yield better returns.

 You receive more financial benefits targeting existing customers than targeting new ones. It costs 5x more to acquire new customers. In addition, existing customers are 50% more likely to try a new product and spend 31% more per purchase than new ones.

Having a successful loyalty programme brings in the revenue your company needs. The time, money, and energy you save not trying to acquire new consumers can then be used to focus on other aspects of your business, such as nurturing your existing customers.

Research shows loyalty programmes bring in new clients anyway, which leads to our next point…

2. Without a loyalty programme you’ll miss out on the benefits of personal recommendations. 

If your existing clientele is happy then they are more likely to share how happy they are with your business with others. Personal recommendations are invaluable to businesses.

Research suggests more than eight-in-10 global respondents (83%) say they completely or somewhat trust the recommendations of friends and family. This trust isn’t just limited to those of your consumer’s inner circle. Their positive opinions of your business are also likely to be shared online. A huge benefit to business owners as two-thirds (66%) say they trust consumer opinions posted online.  

Recommendations are the #1 factor across all stages of the purchase cycle, from becoming initially aware of a product right on through to the actual purchase decision. Recommendations are important for increasing the likelihood that a customer will buy from you. It increases the trust factor of your business.

If consumers trust you then they are more likely to buy from you. This increases your sales and revenue. In addition, you won’t have to spend so much on marketing as personal recommendations and positive word-of-mouth will help drive sales all by itself.

2 women looking through shop window

3. Without a loyalty programme you won’t get the ‘magic’ of customer insights. 

With any loyalty programme, you want to know if it is working. You want to know if the money and resources you’ve put into your loyalty programme have been worthwhile. This is why the data that comes with any smart loyalty campaign is key to your business success.

With access to key data, you will know if your loyalty campaigns are working and you get to learn about your customers.  You’ll be able to discover which products are they buying the most from your business? How much is the average amount spent in the shop? How frequently do regular customers return? Or what are your top-selling items? You will be able to identify which rewards and campaigns work best with certain customers, and which don’t.

Once you have this information, you can tailor your loyalty programmes to your customers’ preferences. For example, if data shows that a particular product or service you provide is popular, you may want to include it in your loyalty benefits. Your loyalty insights can essentially be used as market research. You obtain knowledge about what customers want, which is every business owner’s dream.


Man looking at reports on laptop


Now that you know about 3 important things you might miss out on if you don’t have a loyalty programme. Let’s look at how Emergo can help you with our contactless loyalty solution.

How is Emergo loyalty helping businesses? 

If you are a small to medium-sized enterprise you may have the misconception that you need significant resources and money to match the type of well-funded creative, fun, and engaging loyalty programmes that large companies implement.

Here at Emergo our mission as a whole is to offer transformative business technologies so even the smallest business can afford to adopt them. This is why we offer our contactless loyalty solution at a low monthly cost.

Large companies that run loyalty schemes see an average penetration of around 10%-20%. Our client The Ginistry saw 3x this amount. By using our loyalty solutions, the Ginistry bar is now encouraging repeat visits from their customers by rewarding their continuous purchases and keeping them engaged. You can read more about how impressed the Ginistry was with our solutions by checking out our Ginistry video case study. You can also find out more about the many other businesses we’ve helped by checking out our case studies. 

What is so special about our loyalty solutions? 

Our contactless loyalty solutions transform the way loyalty points are redeemed. Payment cards/devices are turned into loyalty cards. Our solutions use card tokenisation to remember how often a shopper’s cards/payment device is used. When the customer has visited enough times to claim a reward a message will pop up on your card machine when they tap their card to pay. This will notify you the customer is entitled to a reward. All that is left for the customer to do is then tap again to pay and also claim their reward. This means you don’t have to waste time registering the customer and obtaining their personal details and the customer doesn’t have to remember their loyalty stamp card each time they visit. This helps speed up your check-out process and your customers’ payment cards or devices are turned into loyalty cards revolutionising the way loyalty rewards are claimed.   

Contactless Loyalty Solution

What else?

Along with the frictionless journey, our contactless loyalty solution provides you with the the ability to:

Other features of our loyalty solution.


If we have piqued your interest then get in touch. You can also contact one of our friendly and knowledgeable sales reps if you are looking for Online Ordering, EPOS, Payments, or Loyalty Systems.

You can learn more about Emergo by checking out our blog and case studies to see how we’ve helped and supported a variety of businesses.

Get started right away

Alternatively, you can get started on your Emergo journey right away by filling out our sign-up form.



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