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

GetOne Welcomes Nail South!

If you’re in the North Druid Hills area, stop by and see them and GetOne Rewards in action.

Get 1 point per visit. Get $10 off after collecting 9 points!

Stop by Nail South’s Facebook Page to schedule an appointment or at least give them a Like!

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GetOne welcomes Nail South!Get 1 point per visit. Get $10 off after collecting 9 points!

 

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