These days, it seems like virtually every business has a discount or rewards program. No longer just reserved for the big box stores and large businesses, small businesses are now getting into the loyalty program game. In fact, according to a recent report by BIA/Kelsey, 29 percent of SMBs offer some type of program and the number is even higher for retailers. Highlights from the report follow:

  • 94 percent are running their programs in-house as opposed to using a loyalty program platform or app
  • 64 percent are still using a paper format
  • SMBs use their loyalty programs like larger businesses—to track customer behavior and to encourage repeat business
  • 68 percent offer rebates and credits as part of the program while a smaller amount offer points, contests and donations
  • A large majority of SMB loyalty programs offer prepaid and discount offers
  • SMBs surveyed predict that 37 percent of future business will be the result of a loyalty program

In conclusion, loyalty programs are a great way to learn more about customers while providing incentives for repeat business. Therefore, SMBs would be wise to add one to their marketing mix.

BIA/Kelsey clients can access the full report here.


Marshall, Steve. “BIA/Kelsey Data: Are Loyalty Programs SMBs’ Best Friend?” 6/11/2015.