Part 5 of 5: Must-Haves of an Effective Loyalty Program

This is the fifth in a five part series on what you should consider in implementing an effective loyalty program. GetOne would love to hear from you if you have anything you think we overlooked or if you have any questions.

5) Keep up the Communication

Use Case: Bianca was pleased with the loyalty program she set up for shoppers in her hardware store. She saw no reason to send e-mail notifications when she ran deals, discounts, or store specials; the rewards program was more than enough to keep customers coming back regularly.

While offering rewards goes aKeep Up Communications long way toward building a loyal customer base, regular communication is vital to keeping customers informed of your store’s latest news.

  • Advertise a 15% discount to be used between lag hours or seasonal slumps.
  • Inspire clients to try new products and services by announcing introductory rates.
  • Congratulate shoppers on their birthdays with an automatic greeting or coupon.

By establishing regular communication, businesses create a loyal and well-informed customer base that is eager to return, again and again.

Of course, there are better and worse ways to accomplish this goal. GetOne Rewards refrains from using text messages, which many clients consider annoying and intrusive, and which may prompt them to opt out of communications altogether. Text messages are also expensive, costing upwards of 3 cents per message, per user, and do not include read-receipt or coupon attachment capability.

GetOne Rewards Overview Video

 

From “Five Must-Haves of Effective Digital Loyalty” by Maria Khodorkovsky

Part 4 of 5: Must-Haves of an Effective Loyalty Program

This is the fourth in a five part series on what you should consider in implementing an effective loyalty program. GetOne would love to hear from you if you have anything you think we overlooked or if you have any questions.

4) Aim to Please

Use Case: When Richard installed a loyalty program for his pet shop, he was positive he knew exactly what sorts of rewards to offer his clients.

  • For the first 5 points earned, all clients received a free coat brushing for cats.
  • At the 10 point level, points were automatically redeemed for a brushing for small dogs.
  • At the 20 point level, brushing for large dogs was the reward.

Everyone loves options. Allowing customersaim_to_please to choose from a menu of rewards ensures that they will not feel forced into claiming goods they did not want or will not use. In the example above, Richard has taken good care of clients that have their pets brushed, but he has offered nothing for those that come in for other services.

Diversify your loyalty program by allowing customers to pick from a rewards menu or redeem points at different levels. Keep in mind, however, that an overly complicated rewards structure will not be as attractive to customers as a simple and straightforward one.

It is also helpful to include “dream rewards” – big-ticket prizes that require a long track record of loyalty, but that entice shoppers to continue purchasing and accruing points. These rewards may be:

  • Monetary, such as a major discount or expensive item.
  • Creative, like the chance to rename a sandwich after 100 points at a deli or shave the owner’s head after 500 at a hair salon!

Whatever the reward, point redemption should be easy and painless. Making customers jump through hoops just to claim their rewards will inevitably discourage future participation.

GetOne Rewards Overview Video

 

From “Five Must-Haves of Effective Digital Loyalty” by Maria Khodorkovsky

Part 3 of 5: Must-Haves of an Effective Loyalty Program

This is the third in a five part series on what you should consider in implementing an effective loyalty program. GetOne would love to hear from you if you have anything you think we overlooked or if you have any questions.

3) Do the Math

Ineffective Use Case: Chris set up a digital loyalty program in his sandwich shop to reward regular customers and encourage new visitors to return. He decided that each sandwich purchased would be worth 1 point. After 50 points, a customer receives 50% off the next meal.

photo credit: <a href="http://www.flickr.com/photos/davedugdale/5099605109/">Dave Dugdale</a> via <a href="http://photopin.com">photopin</a> <a href="http://creativecommons.org/licenses/by-sa/2.0/">cc</a>

photo credit: Dave Dugdale

In order for a loyalty program to be successful, customers need to feel confident that they can and will receive the rewards you offer. In the example above, a customer would need to eat at Chris’s shop 2 times each week for almost 6 months – all for a savings of only a few dollars. An offer like that does little to inspire even the most loyal customers to sign up.

Attainable rewards are those perceived by a customer to be reachable in a reasonable amount of time with a minimum amount of effort. By measuring the value of the reward with the estimated time period required to receive it, a business can map out a successful loyalty program.

Questions to ask when setting up a rewards system include:

  • How many points does it take to be eligible for a reward?
  • What is required to earn a point?  Points can be earned per visit or per dollar(s) spent.
  • If points are purchase-based, is there a minimum amount that the customer must spend per purchase to receive a point? A maximum number of points per visit?
  • What is the minimum amount of time that must pass between visits?
  • Are points automatically redeemed for a reward at a certain level? Can customers instead choose to “save” points for different rewards at different point levels?
  • How long will it take the average customer to be rewarded?

Here’s just one example of a well structured loyalty program.

Effective Use Case: Alex decided to install a loyalty program in her boutique cupcake shop. To simplify matters, she assigned one point per cupcake  purchased. After 10 points, customers could receive a free cupcake of their choice, or they could save their  points for a tour of the bakery, complete with taste-testing, at 20 points.

By avoiding the pitfalls illustrated in this 5 part series on Must-Haves of Effective Loyalty Programs, you can create a system that fits your business and works for you.

GetOne Rewards Overview Video

 

From “Five Must-Haves of Effective Digital Loyalty” by Maria Khodorkovsky

Part 2 of 5: Must-Haves of an Effective Loyalty Program

This is the second in a five part series on what you should consider in implementing an effective loyalty program. GetOne would love to hear from you if you have anything you think we overlooked or if you have any questions.

2) Ask the Right Questions

Use Case: Rosie’s Hair Salon specializes in high-quality cuts and colors. When Rosie decided to install a digital rewards program, she made sure not to burden clients with too many sign-up questions. Other than a phone number and email address, the only information visitors needed to provide was the year in which she graduated high school and the names and ages of her children.

Gathering information about members enrolled in a loyalty program can provide valuable insights into Data_collection_screenshotconsumer behavior. This useful tool should be a basic function of all digital loyalty programs, but should remain optional for participation. After all, your customer’s continued business is what earns them points and rewards, and they should never feel disadvantaged by opting not to provide additional information such as a birthday or email address. Additionally, in order to encourage participation while avoiding privacy concerns, only request information that matches your industry.

  • An auto shop might ask for the year of a customer’s car.
  • A music store might request a shopper’s favorite guitar maker.

Switch the two and watch as tempers rise and participation decreases.

GetOne Rewards Overview Video

From “Five Must-Haves of Effective Digital Loyalty” by Maria Khodorkovsky

Digital Messaging Strategy: Inactive Customer Messages (2 of 4)

GetOne Rewards is committed to helpingDigital Messaging Strategies - Inactive Customer - 2of4 small businesses achieve big results. Previously, we discussed the 5 Must Haves of an Effective Digital Loyalty Program. This is the second of four posts to get you started making use of the data you collect by examining four specific messaging strategies.

Strategy 2: Inactive Customer Messages

Reengage customers and incent return visits by offering special deals and discounts.

GetOne’s messaging system allows you to specify the length of time after a customer’s last visit that you set to determine inactive status. Identifying and reaching out to inactive customers increases retention and encourages loyalty.

How can I use it?

Simply set the number of days it takes for a customer to be considered inactive. The automated system sends a customized e-mail and app reminder to clients that have not visited in that amount of time. The messaging system also allows you to attach special deals and discounts to encourage customers to keep coming back.

Sample Message

There’s still time to receive 15% off any boutique item! Enjoy 15% off any boutique item on your next visit.

or

We’ve missed you! Stop in and check out our new spring line of clothing! You will also receive double rewards on your next visit!

Please contact us with any questions or feedback!

Next we’ll examine Strategy 3: Birthday Messages

 

From “Digital Messaging Strategies” by Maria Khodorkovsky

Digital Messaging Strategy: Birthday Messages (3 of 4)

GetOne Rewards is committed to helpingDigital Messaging Strategies - Birthday - 3of4 small businesses achieve big results. Previously, we discussed the 5 Must Haves of an Effective Digital Loyalty Program. This is the third of four posts to get you started making use of the data you collect by examining four specific messaging strategies.

Strategy 3: Birthday Messages

Join customers in celebrating their birthdays by offering them a special treat. Customers providing birthday data can be enrolled in a birthday club to receive customized offers, which can be valid for the specified month, week, or day.

How can I use it?

Once a customer supplies birthday data, that information is registered and can be used to generate congratulatory messages and birthday perks.

Sample Message

Happy Birthday John! To celebrate your birthday, stop in and get 20% OFF an entire purchase during this, your birthday month!

Please contact us with any questions or feedback!

Next we’ll examine Strategy 4: Coupon Campaigns

 

From “Digital Messaging Strategies” by Maria Khodorkovsky

Part 1 of 5: Must-Haves of an Effective Loyalty Program

This is the first in a five part series on what you should consider in implementing an effective loyalty program.

1) Make Signing Up a Breeze

Use Case: Jamie stopped by his favorite smoothie shop and noticed an iPad set up next to the cash register. After learning that he could earn points toward a free drink just by signing up, Jamie gladly agreed to register. He picked up a plastic card from the counter and after figuring out where on the iPad it needed to be swiped, began to fill out the detailed questionnaire. A line of people formed behind him. Ten minutes later and several questions left to go, Jamie decided that he didn’t really want that drink after all.

Simply enter phone number to sign-up

Simply enter phone number to sign-up

Before customers can begin to enjoy the perks of regularly visiting your store, they must first be motivated to sign up. There’s no faster way to discourage participation than with a complicated and lengthy sign-up process that makes customers feel like it’s not worth their time to join. Keep customers and cashiers content with manageable registration times.

GetOne’s system, for example, takes no more than a few seconds. Users merely enter their phone number to participate in the rewards program. No cards to manage, no muss, no fuss. Just the first must-have component in an effective loyalty program.

GetOne Rewards Overview Video

GetOne would love to hear from you if you think we overlooked anything or if you have any questions.

 

From “Five Must-Haves of Effective Digital Loyalty” by Maria Khodorkovsky