Statistics have shown that a 5% increase in customer retention will most likely increase a business’s profit margin by 25%-95%.
This indicates that businesses having disloyal customers ought to expend more of their time and resources in getting new customers.
If you have disloyal customers, you should work on converting them to loyal customers, by fixing the issues that keep them not coming back. It is after this you can seek out getting onboard new customers.
If you go on to keep getting new customers because you have disloyal ones, without addressing the issue, there will be a leaky bucket situation with your business.
Businesses find it much easier to grow as they make further recommendations to their family and friends.
In short loyal customers are really great for business as they don’t just let you grow but help you keep profits high.
Techbuild.africa learnt how Loystar a digital commerce platform is helping businesses not just to sell but also retain customers.
New customers tend to cost more to acquire, and don’t spend as much money as loyal, repeat customers.
“Whether you are a solo business owner or you have multiple outlets with staff, Loystar gives you all the tools you need for selling and increasing customer loyalty in your business.”, a statement reads on its website
Ayo Dawodu, CEO at Loystar explains how the digital commerce platform is enabling retail businesses to keep customers and drive sales.
As explained by Ayo, Loystar provides a point of sale platform for small businesses so they can use it to track their sales, daily inventory, help customers keep track of their supplies, and run loyalty programs to drive repeat sales.
Loystar basically serves retail businesses in the likes of restaurants, fashion, businesses, beauty, and sometimes gyms and fitness.
The digital commerce platform also serves a particular bank in Nigeria and Loystar is looking at how its loyalty point engine can be used to drive repeat engagement in financial products.
“Some businesses also in the oil and gas industry use Loystar to run loyalty programs to ensure that their customers keep buying gas from them.”, Ayo added.
Loystar is available on mobile apps and can also run as a web application on desktop computers. The app is also functional when you are offline so your transactions will be synchronized once you are connected.
Recently, Loystar released a new payment product called uPay to interface with its digital commerce platform.
As stated by the founder, uPay acts as a backward integration that will enable electronic payments on the Loystar platform.
Stating further, Ayo said that the transactions that go on Loystar typically are cash transactions through the bank POS or bank transfers through the mobile apps.
“The problem uPay we’ll be solving is enabling electronic transfer that is instant and that is easily reconcilable”
Explaining further, Ayo said that the issue with reconciliation is when payments are made via other channels, apart from cash, it’s hard to reconcile the transaction instantly.
To buttress his point, Ayo gave an instance of when doing a bank transfer, the transaction that occurs is separate from what you see on the POS, so this creates a lot of room for a stressful verification in confirming what was paid for.
“If this were to be on a large scale, let’s say a big retail store, the accountant would spend a whole lot of time reconciling transactions. This also eventually leads into the issuance of two receipts in transactions involving POS.”
However, with uPay, users are integrated straight with the bank such that when they do a transaction, money is moved instantly and then reconciles their transaction right away with what they are selling and buying.
Eventually, users obtain one receipt showing that money has moved, it also shows what you have purchased.
uPay is supposed to be a mobile payment solution, however, the founder stated that it’s primarily via USSD as the first channel it is leveraging because it enables an inclusive atmosphere and also owing to its widest reach.
So the uPay platform also works without the internet, so if you do a transaction a unique USSD code is generated with which you can use to complete the specific transaction.
“And so if you have a payments platform, a website or a mobile app and you want to make or receive payments, uPay is a viable solution, especially if your product is mobile-based.”
The platform easily allows users to generate a USSD code, such that customers can dial the code and easily pay for the goods or service.
They can also get instant reconciliation and notification without relying on SMS, delayed bank alerts, to confirm that payments is successful.
Ayo explains that the target for uPay is the rising lower class, people who are closer to the base of the pyramid but having increasing earning power.
Ayo further stated that this set of people are very familiar with using USSD codes, so Loystar leverages this channel to onboard them into the electronic payments ecosystem.
“But our goal again is just to facilitate commerce by helping businesses sell and keep their customers”
Concluding, Loystar provides retail businesses with everything they need to sell, build customer loyalty and drive repeat sales in their business.
You can check out about Loystar and uPay here for a demo session.
Featured Image: Ayo Dawodu, CEO and Co-founder, Loystar
Don’t miss important articles during the week. Subscribe to techbuild weekly digest for updates