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Last week we discussed why cross-selling needs a compelling use case. These use cases merge different mediums and connect diverse actions into a single workflow. Loyalty apps are one such example.
If the rewards programs from our grocery stores to our airlines have proven anything, it’s that a well-thought out loyalty program can pay for itself for years to come. In the case of airlines, it can even spur its own parallel economy. For instance, we’ve been bartering airline miles for vacations and groceries for decades!
Klaviyo’s recent report makes this case for SMBs. It reports that while 86% of consumers say they use loyalty programs, only 50% of companies offer them.
Loyalty programs have typically been the enterprise’s playground, but the SMB is asking the same question: Why not us?
Reputations, Referrals, and Reviews
In fact, more than the enterprise, SMBs rely on repeat customers—the ones who return frequently and buy more. After the early adopters, referrals are the first source of new customers for a small business and remain a measurable source for as long as the business stays relevant. These buyers have a personal connection with the seller, and that relationship is a two-way street.
The best referrals come from customers who are willing to stake their reputations on the recommendation—the kind where they say “You’ve got to check this out—trust me.” They are the lifeblood of small businesses. Loyalty programs help generate more of these.
Referrals don’t just drive sales; they also improve reputation—which comes down to the quality of reviews on Google and Yelp.
Ever wonder why your doctor’s office, barber, or local Thai restaurant keeps asking for a five-star Yelp review? That’s how they attract new customers.
It doesn’t matter if “Thai Food Near Me” hacks Google search rankings. If the reviews don’t match up, people won’t come back.
The Thanx Example
Loyalty isn’t just about SMS and email; it also ties into e-commerce and payments. Thanx has done this well in the restaurant industry, putting nearly every recommendation in Klaviyo’s report into action.
Businesses can either unbundle their features or use Thanx as an all-in-one platform for payments, coupon management, and customer segmentation. This is a smart play. Offer to manage the customer’s loyalty program, but if they pick you to be their payments processor as well, you get an upside of their upside.
For those already using a provider, Thanx integrates with Toast, Braze, Klaviyo, and others. It follows a familiar formula: Solve a problem well, and a well-executed business follows.
Sidebar: Humanity in Action
I like reading company reports. They have a product marketing spin, of course, but they offer a real-time look at where the industry is heading. The geek in me also enjoys a well-written report.
Klaviyo’s report is a strong example: concise, meaningful, and easy to read. But the best I’ve read in the past three years is still Braze’s “Humanity in Action.” It’s refreshingly detailed and stays mindful of the bigger picture. Even the title evokes a vision.
What are some free reports you’ve read that stood out as spectacularly well written?
Finally
The danger with general-purpose communications (in which I put in SMS, voice, email, push, and when it has an API—ESP) is commoditization. You can take them for granted, underuse them, or implement them poorly. Yet, compelling use cases that integrate them are right in front of us. The challenge is to spot them.