Loyalty programs are all about connecting with your customers and creating a great experience for them whenever they interact with your brand. However, there are mistakes that brands make that can limit the success of a loyalty program and end up hindering the customer experience from the start. The biggest mistake that brands make is failing to adapt their programs to keep up with modern customer engagement trends. Those that don’t meet the needs of their customers will likely fall behind the competition.
Here are the five mistakes that could cripple your loyalty program: […]
There are many different types of reward programs which make it challenging to choose which one is best suited for your brand. Ultimately, there are four considerations to always keep in mind when designing a program.
- Design for “Silver” customers. These are your 50th to 80th percentile customers. They are your regulars, visiting your store while purchasing gas and food. But they almost certainly go to other stores as well. By targeting and motivating these customers an opportunity is presented to drive them to visit you more often and for more purchasing occasions.
- Get customers to their reward, fast. Customers should earn their first reward quickly. When someone enrolls in your program they need to see immediate value in it, meaning that their first reward needs to happen within the next couple of visits so the customer can see the value in being a member. Additionally, silver customers, the customers your program is targeting should be earning their rewards fairly frequently. If you are doing a points program, have low-value redemption options such as coffee or candy that they can earn every five to ten visits, at least.
- Reward good behavior. Good behavior is whatever your concept wants it to mean, but probably includes a store visit and gas purchase, upgrading to premium gas, or visiting for more purchases, and new day parts. Your program needs to support your corporate goals. If you are trying to compel customers to visit and buy more freshly prepared food, then make sure the program and stores support that initiative.
- Leverage vendor funding to drive your results. Vendors’ interest are not always well aligned with your bottom line. If their promotion switches volume from, say, Coke to Pepsi, then that’s great for Pepsi. But if it didn’t drive any extra traffic into your store, or any incremental spending, then what did it do for you? Think about whose customer is. They are yours, not the CPS’s. Vendor funding can be used in different and unique ways in order to drive more visits and spend. A good use of vendor funding would be to leverage those funds to drive more purchases of an item and in return, the customer earns bonus points.
Reward programs deliver outstanding financial returns by motivating customers to visit more often and spend more with each visit. Learn more about building a reward program with your customers in mind by watching this webinar “Brilliant! Reward Program Design Principles for Convenience Stores.”
The greatest revenue-generating potential a loyalty program can tap into is a brand’s segment of customers who visit sometimes but not always. We have seen this proven time and again across more than 300 reward programs.
Each segment of customers visits at a particular frequency. Customers with medium-to-high frequency are giving the brand nearly all of their possible visits. Since they are already your biggest fans, getting them to visit you more is going to be tricky. On the other hand, low-frequency customers are visiting your brand occasionally, but other brands are being visited by them more frequently. The potential for your team to move low-frequency customers into a higher-frequency segment is where the value of any successful loyalty program comes into play, as the goal is to steal visits from the competition.
So, if the value of your loyalty program depends on your ability to attract lower-frequency members, how do you do it? There are three key factors. […]
Club programs are a staple in the convenience store industry. They help to motivate customers to visit more often since the customer knows that they are working towards getting a free reward, making sure they keep returning to make their purchases.
So, while club programs are a tried and true method for convenience store loyalty, there are three strategies to take these programs to the next level and start making an impact on your brand’s bottom line. […]