At the recent Foodservice Australia Event in Melbourne, our Director of Sales and Marketing Sarah Franklyn, distilled 20+ years of experience into a presentation to help hospo businesses design their loyalty programs in 3 simple steps.
Designing the right loyalty program for your business is a journey that starts with WHY! Why does your business need a loyalty program, why will your customers join, why will your stakeholders care and why will you be successful.
The reason that any business needs a loyalty program is to create, influence and smooth demand.
It is so much more than deciding between stamps and points! The real secret to success is embedding it into your business operations and knowing that in order to realise the full value of your investment, you need to have a mechanism to contact customers even when they aren’t visiting.
At Impact Data, we work with a number of data partners that support loyalty programs. They have great tools that can help drive your loyalty program when a customer is on premise, but if you haven’t got the ability to get them to your business when they have stopped visiting, you only have half of the program and are likely only engaging with your frequent customers.
Our data shows that customers who receive behavioural triggered messages are up to 10x more likely to visit. Getting these less frequent customers to engage with your loyalty program is where you can drive real revenue and realise the return on your loyalty investment.
With many clients we work with, we see that up to 20% of the customer base are not interacting with the loyalty program. So they may be visiting and spending, but if they don’t identify themselves in the transaction, all the value of your loyalty offering is lost. Impact Data is able to identify and target these customers without our clients lifting a finger. This is another example of how our communications really help clients drive their loyalty program.
In addition, our series of automated communications for loyalty programs are all about ‘priming your loyalty customer’. That means we help them understand how they accrue rewards, where they are at in relation to their next reward and how to actually redeem their rewards.
Our data shows that redemption of rewards is actually really low, in fact it’s under 15%. Working with your tech partners is key to ensuring that when a customer visits and identifies themselves, staff are able to see that they can redeem a reward. This combined with Impact Data’s automated communications, can help drive up your redemption rates, and remember ‘redemption is retention’.
And one last tip when you are thinking about your loyalty program design – remember to roll out the red carpet for your customers who are redeeming rewards or using a voucher or offer that’s been sent to them to get them back to your business. You have worked hard to get that visit and you want your customers to remember what an amazing experience it was so they will tell their friends.
Want to chat to us about your loyalty program and how to get the most from it? Contact us at hello@impactdata.com.au
DOWNLOAD THE LOYALTY PLAYBOOK HERE
