Welcome to the WholesaleForum.com! Sign in or Register Free to benefit from our full range of free services

Welcome to Wholesale Forum.comWelcome ToWholesale Forum.comFind wholesale buyerstrade buyers and wholesale offers free

For Buyers

Wholesale Forum is the fastest growing online business community dedicated to retailers, auction sellers, surplus and overstock buyers needing a quick and safe solution for sourcing trade stock. Join our free and friendly forums today and gain knowledge, offer your advice, and discover new partnership opportunities:

For Suppliers

For wholesalers, dropshippers, manufacturers, distributors and trade services providers. Advertise your business today on WholesaleForum.com for free to reach potential trade buyers on a more personal level. Promote your latest offers, interact with buyers in real time, distinguish yourself as an expert in your field, and attract sales instantly.

Sign up now More benefits for Buyers
Sign up now More benefits for Suppliers
Post Reply
Page 1 of 2 1 2 LastLast
    1. Jeff.Jackson53 is offline

      Join Date
      Aug 2010
      Location
      United States
      United States
      Posts
      51
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #1

      Integrating a loyalty program - Updating it to keep customers interested

      Ive been doing a coffee card-type customer loyalty program the past 3 yrs. You know, buy 10 coffees and get the 11th free type thing (spend $50 and get a $5 gift card). For the past several months, Ive still seen a drop in sales and several very loyal customers poofed. I need to do something with my program because it costs me money, but Im not sure if I want to cancel it or just change something up to suit my needs?
      Over 150,000 Verified Sources + Deals 95% Off MSRP + Free Website!

    2. Sammie is offline

      Join Date
      Oct 2010
      Location
      United States
      United States
      Posts
      173
      Thanks
      0
      Thanked
      11 Times in 2 Posts
      #2
      First off, you want to be very careful about instituting a loyalty program in the first place, and almost equally careful about changing it. Don’t do it unless the plan itself or the changes are an expense you can absorb for the long-term.

      This expense cannot be overstated-- even the supermarket industry’s extremely mature loyalty programs (Kroger Card, etc) account for upwards of 1% to 1.5% of their revenue, and other, less developed programs choke down in the neighborhood of 5% (!!!), but cancelling your loyalty program is one of the best ways I have seen, to alienate regular customers.

      I’d say, making changes to a loyalty program carries the same considerations as planning to implement a loyalty program in the first place. Keeping that in mind, here’s a (admittedly minimal) checklist -

      1. Be patient: You’re looking at a minimum of 18 months to see any kind of real return on a loyalty program or 7 months for changes thereof, to yield any fruit. Again, this is a long-term project. You must be willing to swallow the cost of your loyalty program until the relationship sets. It might take almost 6-7 months before you see any results.

      2. Research, and get good data: Loyalty programs generate immense amounts of data regarding customer penetration and lost customers (you’ve seen this quite directly if I understand your account). If you’re going to get a decent idea of just how your program is helping or hindering you, you must be aware of these chances. Another point to keep in mind - loyalty programs have reached market saturation, and the number of loyalty programs in the wild far out-strips the number of customers enrolled in them.

      3. Be flexible, but realistic: You want to make your program as flexible as possible for your company. No one expects a private business to be able to compete with the likes of the Hilton HHonors or the Kroger Card, but you definitely want to think beyond the coffee card.

      4. Cut out or transform unprofitable customers: You certainly don’t want a customer that doesn’t make you any money to become “loyal”. With the RFID and PoS technology, tracking individual customers is much easier today than it was yesterday, and if Bob is a cash-sink, you don’t want him enthusiastically costing you money. A poorly-executed loyalty program will do just that. Better to figure out how to make him profitable before you make him “loyal”. Cater your loyalty program to profitable customers, or better yet, build a program that encourages customers to become profitable. You are in this for the profit, after all.

      5. Use your data: If Content is King, then Datum is Deity. Use the information gathered from your previous program attempts to tailor your revamped loyalty program to your customers. Do you want to keep your coffee card-style format and reward every $50 spent, or are you going to assign points to each purchase made, and allow customers to “purchase” benefits? You won’t really know what will work unless you crunch those yummy numbers.

      As I said above, you want to go into this change with as much information as possible. You don’t want to trap yourself in a loyalty program that’s costing you money and lose customers because you cancelled the program.

      When you pull customers into a loyalty program, you make an unstated promise to keep the program going; otherwise it’s a waste of time and money for the customer, and ultimately, you.
      Want To Be An eBay Powerseller?
      This is the Service You Need.

    3. C.Walker is offline

      Join Date
      Aug 2010
      Location
      United States
      United States
      Posts
      25
      Thanks
      0
      Thanked
      1 Time in 1 Post
      #3
      Don’t forget social media! Social networking sites - especially Foursquare.com-- have started working with businesses to create loyalty programs for customers involved in the program. Seems working with Facebook, Twitter, or Foursquare would go a long way into taking at least some of the weight of managing a loyalty program off your back.

    4. Sammie is offline

      Join Date
      Oct 2010
      Location
      United States
      United States
      Posts
      173
      Thanks
      0
      Thanked
      11 Times in 2 Posts
      #4
      Hadn’t thought about Foursquare but you’ve got a point! This would require your customers to have the technology to use Foursquare, but considering the number of smart-phones out there, this is not too much of an issue.

      Quote:

      Originally Posted by C.Walker View Post
      Don’t forget social media! Social networking sites - especially Foursquare.com-- have started working with businesses to create loyalty programs for customers involved in the program. Seems working with Facebook, Twitter, or Foursquare would go a long way into taking at least some of the weight of managing a loyalty program off your back.
      I do question whether or not it’d take any “weight of management” off your back, but I wouldn’t let that stop me from giving it a shot. It certainly seems to be the direction things are moving, along with augmented reality.

    5. Jeff.Jackson53 is offline

      Join Date
      Aug 2010
      Location
      United States
      United States
      Posts
      51
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #5
      What is Foursquare about? I’ve heard about it, and several acquaintances use it, but I haven’t gotten all that deep into it.

    6. Sammie is offline

      Join Date
      Oct 2010
      Location
      United States
      United States
      Posts
      173
      Thanks
      0
      Thanked
      11 Times in 2 Posts
      #6
      Foursquare is a social media site and program - like Twitter, Facebook, and ping! That uses the GPS, mapping, and SMS texting functions of cellphones to allow users to “check in” at various locations around their city. It’s a way of sharing your experience of your town, but also a game. Players compete with each other by “checking in” to given locations and earning badges, and the people found to check in most, are “crowned” “mayor” of that particular location.

    7. Jeff.Jackson53 is offline

      Join Date
      Aug 2010
      Location
      United States
      United States
      Posts
      51
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #7
      That sounds like something I’d hate as much as Twitter. How does it work as a loyalty program?

    8. C.Walker is offline

      Join Date
      Aug 2010
      Location
      United States
      United States
      Posts
      25
      Thanks
      0
      Thanked
      1 Time in 1 Post
      #8
      Foursquare works as a loyalty program when business owners pay attention to Foursquare. You work with Foursquare to provide awards to your customers who check in. Like a free upgrade to a large Coke when you check in, a free cookie for having a certain badge on every 10th check-in, or 15% off for the current Mayor.

      This works great in theory since it encourages people to literally keep coming back to your location. In order to get the rewards, they have to actually come to the shop (or whatever) and check in, and they have to do it more than anyone else in order to snag the Mayor-level rewards.

    9. Sammie is offline

      Join Date
      Oct 2010
      Location
      United States
      United States
      Posts
      173
      Thanks
      0
      Thanked
      11 Times in 2 Posts
      #9
      Ok, we derailed into a Foursquare ad for a second. Yes, Foursquare is great and could be a big help. Keep in mind the restrictions -

      Limited penetration - If your only loyalty program is attached to social media, then you’re limiting your penetration to those customers involved not only in social media, but the specific social media with which you’re working, and with access to the technology upon which the social medium is founded. True, most folks are involved in social media, but you’re still restricting your target and will inevitably miss a good chunk of customers.

      Social media is still young - Social media is still finding its legs, as these things go. Foursquare’s servers have already proven incapable of working reliably under the weight of even the current batch of users. Facebook too is notoriously temperamental and doesn’t have the best security record. Consider seriously, whether or not, you want your loyalty program to be reliant on shaky servers, easily bypassed security, and the like.

      I’m not saying that social media isn’t something worth checking out - it absolutely is worth it, and is swiftly becoming the standard around the Connected World, and you’d be remiss not to get onboard with it. All I’m saying is, as in all things, in business, be careful, research, and know where all your exits are.

      It’d be a mistake to discount social media entirely, but that doesn’t mean dive in with both feet. Fold the social media angle into your research and options for the loyalty program. You can’t look at these things as binary options-- you either do it or you don’t - especially today; you want a mixture of elements that will net you the most loyal, profitable customers; shape unprofitable customers into money-makers; generate the least amount of stress, paperwork, and data-juggling; and keep your loyal customers coming back again and again.

      Frankly, if the program doesn’t do all of those things, it isn’t worth doing.

    10. brandloyaltyexcellence is offline

      Join Date
      Feb 2012
      Location
      India
      India
      Posts
      2
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #10
      Do you have a well structured loyalty programme for your customers?
      AIMIA Presents
      CUSTOMER LOYALTY EXCELLENCE - A MASTERCLASS Led by Mike Atkin * World Renowned
      Loyalty Expert http://www.goldmancommunications.com/CLE2012w.pdf

Sign Up Now

Got something to say? Sign up now and join the discussions.

Post Reply
Page 1 of 2 1 2 LastLast

Tags for this Thread

Similar Threads

  1. Dealing With Difficult Customers, Angry Customers and Just Plain Rude Customers
    By wholesaleinsight in forum Business Articles & Resources
    Replies: 0
    Last Post: 10 Sep 2010, 04:51 PM
  2. How is Skype integrating Facebook?
    By tim007 in forum Marketing, Advertising, SEO & SEM Discussion
    Replies: 18
    Last Post: 18 Nov 2010, 03:45 AM
  3. Integrating Web Site Design and Shopping Cart
    By twinkle in forum Website Design & Hosting Discussion
    Replies: 1
    Last Post: 18 Feb 2012, 12:04 PM
  4. Ways To Make EBay Customers Repeat Customers
    By DropshipDiva in forum eBay, Amazon & Online Marketplaces Discussion
    Replies: 0
    Last Post: 12 Oct 2010, 03:25 AM
  5. Customer loyalty schemes
    By Bosley in forum Starting & Growing Your Business Discussion
    Replies: 6
    Last Post: 02 Aug 2010, 03:32 PM
  6. Strategize For Customer Loyalty
    By wholesaleinsight in forum Business Articles & Resources
    Replies: 0
    Last Post: 03 Sep 2010, 05:20 PM
  7. Building Trust Results in Customer Loyalty
    By wholesaleinsight in forum Starting & Growing Your Business Discussion
    Replies: 3
    Last Post: 19 Jun 2011, 11:23 PM
  8. How To Use Loyalty Marketing To Grow Internet Business?
    By Dave727 in forum Marketing, Advertising, SEO & SEM Discussion
    Replies: 18
    Last Post: 06 Sep 2010, 08:56 AM
  9. Can somebody tell me if they've used PayPal's shipping program?
    By DMartinez112 in forum Shipping & Shipping Documents Discussion
    Replies: 40
    Last Post: 23 Aug 2010, 06:41 AM
  10. Has anyone used the Outright program on Ebay? What did you think?
    By KevinTW in forum eBay, Amazon & Online Marketplaces Discussion
    Replies: 12
    Last Post: 03 Nov 2010, 03:13 AM

My Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
All times are GMT -4. The time now is 06:16 PM. - Fixed Width