Enhancing Customer Loyalty in Ag Retail: Setting a New Standard for Rewards Programs

Loyalty programs are a common occurrence in almost any business transaction today. Companies are capitalizing on the staggering statistics that continue to show loyalty programs drive repeat business, help understand customer preferences, and provide a win-win for buyer and seller. 

Do such programs have a place in retail agriculture? It’s likely most ag retailers utilize one or more forms of loyalty or reward programs for customer retention, such as- discount programs, ad hoc rewards, perks, partner programs, among others. However, the most common forms of traditional customer retention programs applied by ag retailers have fallen short for maintaining customer loyalty and may lead to missed sales potential through uninspiring incentivisation.  

GROWERS, a leading provider of agricultural technology to farmers, retailers, and manufacturers, has recently reinvented the ideal ag retail loyalty program to exclusively align manufacturers and farmers directly with the retailer. With a points-based system rather than a discount pricing model, it is poised to deliver unparalleled returns on investment, flexibility and revenue generating advantages for its users.

Loyalty Programs Today

The objective of any loyalty program is to encourage return customers, thus, generating more sales for the business. Customer loyalty is challenging, and the programs developed for retention have been loosely defined in the agriculture industry. Discounted pricing or rebate-style programming doesn’t incentivize future sales, only the immediate purchase. To close a future sale or prevent a customer from purchasing elsewhere, retailers must continue offering the lowest price point or sell on a ‘best-in-service’ pitch- which can make differentiating a business from competitors increasingly difficult. However, a new feature from GROWERS addresses this need by bringing modern consumer rewards models to the agriculture retail audience.

Ensuring Customer Loyalty

The rewards program feature developed by GROWERS for use on their retailer platform flips prior customer rewards models and incentivises each sale to be turned into a future sale. Customers build points redeemed on sales made with the retailer and are, in turn, encouraged to use those for future purchases. 

This approach drives farmers back to the retailer to take advantage of the rewards they have built. These rewards are placed into the customers account through the GROWERS app and have no value unless cashed in on a qualifying transaction with that specific retailer ensuring retention is maintained. 

With similar products and brand lines common among ag retailers, traditional discount programs pose a risk of the customer chasing the lowest price. This new strategy is similar to other brand loyalty programs most consumers are familiar with in common goods and hospitality – hotel points, store rewards cards, fuel loyalty programs- and now deploying it for ag retail.

Digital Integration and Ease of Use

The new loyalty feature is integrated into the GROWERS platform. It operates within a singular ecosystem, where the tracking, allocation, and redemption of points are seamlessly managed for the retailer and the customer. This approach not only simplifies the process but also ensures minimal maintenance and passive communication, where the implementation runs in the background to minimize the burden of administrative needs for the retailer.

Customization and Flexibility

One of the standout features of this loyalty program is its flexibility. Unlike other programs that offer flat, fixed, and one-time rates, this feature allows rewards programs to be designed with variable tiers, segments, and hurdles. Retailers can tailor the program to meet their specific sales goals, offering a specialized experience for their customers. 

This flexibility is complemented by templates and consultative sessions, ensuring that each retailer can implement the program in a way that best suits their sales goals. By understanding customer buying patterns and steering the conversation towards genuine loyalty, the program helps organically increase repeat business opportunities for retailers that also benefit the customer.

Retailers may initially view the program as yet another system to manage, train, and equip their teams. However, the ease of adoption and minimal maintenance requirements should alleviate these concerns. The feature is an integrated part of the GROWERS platform, rather than an additional program or account.

The New Standard

The modern agricultural sales company has long awaited a modernized rewards program with full digital integration and flexible customization. With the solution now deployable via the GROWERS platform, retailers can unlock repeat business and drive long-term loyalty, rather than rely on short-term discounts. As more partners adopt this innovative approach, it is set to become a key part of retail sales systems to differentiate in the market driving mutually beneficial rewards.