The only way to know if your loyalty or other guest-engagement campaigns are succeeding is to track them and analyze your results. Unfortunately, even numbers that appear straightforward can contain hidden implications.
Depending on how you look at your data, a campaign can seem like a roaring success or a misfire. But sometimes it requires further analysis to determine if your initial assessments are accurate.
In worst-case scenarios, you may discover that a campaign you decide to run again based on previous positive data had been a misfire the entire time. Not only are you producing unfavorable results, but you are also wasting time, manpower, and money.
For example, let’s say you set up a “We Miss You” campaign. These are fairly common loyalty program campaigns in which you send out an offer to people who have not visited your stores in a while to encourage them to return. After deciding that you’re going to set up a campaign for people who have not visited in 60 days, you send them a coupon for 15 percent off an entrée.
Once you’ve run the campaign and examined your results, the numbers look great. Many guests who had not visited in 60 days made visits during the campaign period and used the coupon you sent them. It seems like the campaign was a resounding success!
But was it truly successful? Sometimes results in campaigns like this are deceiving. […]
Your brand needs to connect with millennials now – it’s crucial to the future of your business. At over 75 million strong, millennials dominate the U.S. population. This generation, born between 1980 and 1996, holds around $1.3 trillion in spending power, according to Boston Consulting Group, and they haven’t even reached maximum earning power…yet.
The age gap in the millennial generation is the root of many marketing communication challenges. The 20-year olds could be at college with irregular daily schedules, limited budgets, and a single relationship status. While on the other end of the spectrum, 36-year old millennials are likely to be married homeowners with children. Do individuals from age 20 to age 36 have enough common characteristics to be lumped together as a single target audience?
Reward programs have been around for years. Airlines, hotels, and restaurants adopted these programs decades ago. Convenience stores on the other hand, seem to prefer club programs and simple promotions like 3 cents off per gallon or short term, low value programs.
At a high level, mass promotions are a great business strategy, driving more visits and spend. Most of the time they are also paid for by the CPG vendors, so the cost of running these promotions is minimal to the convenience store. Mass promotions and eblasts get brands quick wins and compel customers to make purchases with the incentive of getting an item for free.
Most mass eblast promotions are the standards “Buy 1 coffee, Get 1 coffee Free.” Let’s think about this from the customers’ point of view, […]
With a greater understanding of customer spending and visit habits, marketing becomes more agile, is able to make informed decisions, and can ultimately compel repeat visits and increase baskets through relevant engagement.
There are three main factors that make a loyalty program successful:
A well-designed program. Core loyalty programs typically motivate members to increase visits and spend. Customers need to feel the value of being a member. They should be earning a reward around every 4 to 6 visits. It is best to make sure you have low-value redemption options such as a cup of coffee or a candy bar that customers can work towards redeeming and feel as though they are being rewarded fairly.
Running various kinds of promotions is another key component in a well-designed program. Promotions keep the program interesting and fresh in the eyes of the customer. Getting a surprise reward makes customers excited and more willing to engage in the program.
CPG deals that are aligned with your brands goals. Vendors have their own interest that may not always align with your bottom line. Ensure CPG-sponsored promotions are driving extra traffic into your store, or add incremental spending. Good relationships with vendors allow your brand to work with them on promotions and ways to effectively use their funds. Instead of running a buy one get one free promotion you can use these funds in different ways to drive more visits and spend. For example, drive more full price purchases of an item and in return your customers can earn bonus points towards their next reward.
Support from all levels of your organization. Programs succeed when executive buy-in is present. Harnessing the influence that the top of the organization wields reaches all aspects of the program from motivating general managers to train staff and be accountable for the program metrics in their district to addressing franchisee concerns about discounting. When buy-in is present throughout the entire organization, brands will try new things and continually evolve the strategy that makes an impact on the business.