Quick Guide To Loyalty Program Enrollment How to enroll hundreds of customers in your loyalty program quickly, easily and effectively
What s your most valuable business asset? Is it your building?.no Is it your employees? no Is it your inventory? not that either The single most valuable asset you have is. YOUR CUSTOMER LIST Business consultants and accountants agree that an up-to-date customer database can double the value of your business and cut your marketing budget by as much as 81%! So why is a customer database so important? For starters, it gives you (or a person who wants to buy your business) first hand knowledge of who your customers are, where they live, and how to contact them. - 2 -
Secondly, once you have your customer s contact information, you can break the ties to mass advertising and speak to your customers directly with personalized email and direct mail. Now, the thousands of dollars you spend on mass advertising can be channeled directly to consumers who ve already purchased from you...for a fraction of the cost. A customer database is a goldmine of information. But first, you have to give your customers a reason to provide this valuable information. In this day and age of identity theft, SPAM and advertising overload consumers aren t willing to just hand over their personal information. You have EARN it. That s why a customer loyalty program is so valuable. They ve been used effectively by airlines, grocery store chains, retailers and hotels for decades. And today, studies prove that consumers expect to be rewarded for their purchases and are loyal to merchants who give them something back. So if you re looking to start a customer loyalty program or already have a one here are some tested and proven ways to jumpstart your customer enrollments. - 3 -
1) Offer Customers INSTANT Gratification. Don t make them wait for the benefit of signing up for your loyalty program. Give them something IMMEDIATELY, on this purchase, just for joining. Your goal is to 1 st motivate customer to enroll. Then, get them to engage in your program right away. 2) Make the Enrollment Offer Worth Their While. You might think that a Free Meal, 50% Off or a Free Gift is too much.but think about this: How much does it cost you to reach that customer if they leave WITHOUT providing their contact information? Let s take a look at an EXAMPLE - 4 -
You deliver a 5.5 x 8.5, full color postcard mail campaign to 2500 consumers. A good price on this would $1072 or $.43 each. You get a solid 1.5% redemption rate which equals 37 customers (2500 x.015). Your cost to acquire those 37 customers is $29 each ($1072 divided by 37). The customers spend your average ticket of $23 LESS the discount you gave them on the mailer let s say it s 15% off. With the discount, you got 37 customers to spend $19.55. Total revenue from the promotion is $723 vs. an investment of $1072. This is a very common scenario for a retail or restaurant business. You actually LOSE money on the initial campaign and hope that these customers will come back a 2 nd or 3 rd time to make the promotion profitable. - 5 -
But without capturing contact information from these customers, you have to spend $29 all over again to reach them! So that brings us back to the value of the enrollment offer. Make it strong and make it worth their while. By investing in customers today, you re saving yourself thousands of dollars in the future PLUS, you re getting another customer in your circle of influence. Remember, one-time customers are the most unprofitable customers you ll ever have. It s not until they buy 2, 3 or 4 times that you really make money. 3) Ask Your Customers to Enroll While They Wait. If you re in a restaurant setting tell your customers about the instant savings when they place their order. Then, let them complete the enrollment form while they re waiting for the food. Don t ask them to enroll after their food has arrived or when they get the check. At that point, they just want to get out. - 6 -
If you re in an auto service setting ask your customer to join today for 25% off their oil change. Then, let them complete the form while they have nothing else to do but wait for their car. If you re in a drycleaner setting ask your customer to join while they wait for you to get their order. The bottom line make sure you ask your customers to enroll when they have nothing else to do but wait and always motivate them with an instant savings. 4) Motivate Your Staff. These are the front-line sales people of your business. They should be educated on the benefits of the loyalty program for both the customer AND the business. Then, run a promotion for the most enrollments in a given week or month. Another staff promotion includes a customer referral program. Here s how it works - 7 -
Give your staff cards that promote your loyalty program (be sure to highlight the enrollment offer). Ask them to write their names on the cards and give out as many as they can to family and friends. You can either offer a dollar amount per referral or a special prize to the person who refers the most. Then, customers can either join online or come into your store to enroll. NOTE: Your loyalty program should have a Referred By field in the online enrollment form. This allows you to easily track where the referrals are coming from. 5) Promise Your Customers Complete Privacy. You have to ensure your customer that their information will not be shared and will not be abused. This should be bolded, underlined and highlighted on your enrollment form. Even if you have a valuable offer to join your program if they don t feel like their information is secure, they won t join. - 8 -
6) Advertise Your Program Everywhere Your Customers Look. You don t have to print elaborate brochures or spend a lot of money. People join loyalty programs for the rewards, the value and the special perks. Remember the only station your customers are tuned in to WII FM (What s in it for ME). Just keep it simple by presenting the program name, the immediate incentive to join and your top 3 rewards or perks. EXAMPLE: Join Bob s Pizza Rewards and Get CASH BACK on every purchase. Here s just a small sample of what else you get A FREE Meal on Your Birthday Preferred Customer Seating 15% OFF all Gift Card Purchases JOIN TODAY and get a 50% OFF your order - 9 -
Something that simple can attract hundreds of customers to your program. Here are some ways you can promote your program inside your store: Menus Table Tents Shirts Hats Buttons Window Decals Bathroom Advertisement Receipt Advertisement Entry Way Sign Inside Guest Checks Flyers on Pizza Box Tops Inserts on side of Pizza Boxes Telephone On-Hold Messaging A separate line for VIP customers A sign in front of select parking spaces at the front of your restaurant reserved for VIP customers. Scrolling message board A small sign below televisions Flyers in To-Go Orders Printed Bar Napkins Menu Boards Signage in the Entry Way / Waiting Area - 10 -
7) Give Your Customers an Instant Reward. The most important part of any loyalty program is ENGAGEMENT. You have to get your customers interacting with you, your program and your brand. By giving your customers enough points to instantly earn a reward, it means they will immediately see the benefit of your program and how it works. The habit starts to form and you take one step closer gaining true loyalty. EXAMPLE: You offer a points based program where $1 = 1 Point and 100 points = $5 back on their loyalty card. Here s what your enrollment offer would be: Receive 100 Bonus Points and your First Reward just for Joining Today. When the customer returns home and checks their email, they will have a message and reward certificate waiting for them. This reward is good on their very next purchase. - 11 -
8) Enroll Gift Card Holders. Your loyalty program should offer a 2-n-1 gift AND loyalty card. This allows you to sell gift cards and convert gift card holders into loyalty program members without switching cards. It s kind of like the Card that keeps on giving. Here s how it works: First, you have to heavily promote your gift card program especially between October and December. Offer bonus points to loyalty program members when they purchase gift cards, put signage throughout your store, run a staff promotion, etc. In this situation, selling a gift card is like a miniature sales person for your loyalty program. Next, when a gift card holder receives their card, they have the option to go online and register their card and automatically become a member of your loyalty program. If the cardholder doesn t register online, just make sure that your staff enrolls them in the program when they come in to use the gift card. - 12 -
The customer already has a card and they re right there ready to use it it s the perfect opportunity for a new enrollment. Without getting gift card holders to register in your loyalty program, they re just faceless customers who you can never connect with. 9) Display the Soft Perks Studies show that soft-perks can be just as valuable to consumers as the monetary benefits of a loyalty program. Soft-Perks are all the warm and fuzzy benefits of a loyalty program. They include: Preferred Seating Call Ahead Seating Special Parking Spots Separate Pick Up Lines Free Upgrades Valet Service Be sure to display these in prominent areas so nonmembers can see them and they see OTHERS enjoying them. - 13 -
EXAMPLES: Put signs in preferred customer parking spots Designate a table or area to loyalty program members. Create a separate line for loyalty program members. The ideas can go on and on.. By doing this, you will encourage more people to join your program, or at least get them to ask questions about it. 10) Keep It Simple! This is one of the cardinal rules of loyalty programs. Studies show that consumers want immediate and monetary results from the loyalty programs they join. Too many levels, complicated point schemes, and little upfront benefit will turn customers away and hurt your program results. We live in a society where consumers are starved for time and overloaded with advertising messages. They want - 14 -
immediate results and don t want to spend the time trying to understand a loyalty program. Again, they just want to know What s in it for me in as few words as possible. So, when you re crafting your loyalty program think of your pitch. Can you explain the compelling benefits to join your program in 20 words or less? If so, you re on the right track! 11) Aggressively Reward Customer Referrals Introducing viral marketing into your loyalty program can be one of the fastest ways to gain new members. Many of the same things we talked about earlier apply. You have to hold a BIG carrot out there to get customers to bite. You re asking them to part with precious time and spread the word about your business. - 15 -
With consumers more starved for time than ever before that s a tall order. And once again they re thinking, What s in it for ME. For those two reasons, you have to make the referral process QUICK, EASY and VALUABLE. So QUICK they can refer a friend in less than 30 seconds. So EASY it takes no thought whatsoever. So VALUABLE it s a no brainer and they ll see immediate benefit. Your loyalty program provider should offer a way for your customers to refer friends simply by clicking a link in the emails they receive from you. 3 Simple Steps: 1. Click on the Refer a Friend link 2. Enter the friend s first name and email address 3. Click SUBMIT Then, their friend receives an email invitation along with a special offer to come join your program. Once they join, - 16 -
the referring customer AUTOMATICALLY gets a reward or bonus points. You should never have to touch a thing. It s easy and valuable to your customers and completely automatic for you. Remember, in your customers mind, it s a trade off. Is the benefit of spending time referring a friend worth what they re going to get in return? Don t be shy with what you give for customer referrals. You want to get people talking and spreading the word about your business and your loyalty program. Think of it as a bounty for new customers. The more you give, the more you ll get. 12) Allow Customers to Enroll Online Your loyalty program provider should offer a way for customers to enroll even if they aren t in your store. - 17 -
Now, you can advertise your program in all of your outbound advertising Flyers, Box Top s, Direct Mail, Website, Etc. This allows people to enroll any day and any time. One way to encourage customers to enroll online is by passing out flyers. Go business to business calling on car dealerships, doctor s offices, retail stores, office buildings, etc. On the flyer make a time sensitive offer (today only would be best). Give them 50% of their meal, a free sampler platter or a free gift card if they enroll in your program right away. There are hundreds of incentives you can come up with. You just have to get out there and ask for the business with a compelling and time sensitive offer. - 18 -
13) Partner with Local Organizations or Sports Teams This is just good common sense. The more people you can reach with a single relationship the better. Even more powerful is when you partner for a good cause. For EXAMPLE: Offer to donate a % of every purchase to pay for uniforms or equipment for local little league teams. With your loyalty program, you should be able to add a section on the enrollment form for GROUP. When customers enroll, all they have to do is write the Little League Team Name in the GROUP section of the enrollment form (or they can enroll online the same way). Then, spread the word to all the team coaches and let them know how easy it is to earn money for their team. It will be best to make a flyer so they can pass it out to all the parents. Finally, just pull a report from your loyalty program sorted by Group and you can issue a check to each team for - 19 -
what they earned. Do it monthly, quarterly, yearly or however you want. Think about all the opportunity right in your community: Little League Teams Schools Charities Churches Once you get one team or organization started, be sure to beat the Public Relations drum. Write a press release or call the local media and tell them what you ve done. They re hungry for news and this can help get your program on the map with other teams and organizations. Not to mention, you ll get your name and loyalty program in front of the entire community! If you need help writing a press release, there are plenty of PR companies that can do it for you and distribute it to the local media. Either way, be sure to leverage your partnerships with organizations and charities by utilizing the media. - 20 -
14) Connect with Influencers These are people in your market that have influence over a great number of potential customers or members. This is very similar to #13. In fact, the heads of organizations and sports teams would be considered Influencers. When you connect with individuals, or groups, who can influence many people you end up working less and getting more. Depending on your business, Influencers can include: Journalists Food Critics Local Politicians Professional Advisors Heads of business TV or Radio Personalities Local Celebrities People in large social networks PTO presidents The list can vary so much from one business to another. You just need to put some thought into who would be considered an influencer for YOUR business. - 21 -
Most commonly, an influencer would meet one or several of these characteristics: Activist: They get involved with their community, charities, etc. Connected: They have a large social network Impact: They are looked up to and are trusted by others Trendsetter: They tend to be early adopters Leverage: They have the ability to sway the decisions of others around them. A great example of an influencer in the restaurant business is a pharmaceutical rep. They re equipped with huge budgets to spend on lunches for their doctors. And, they have to spend the money or they simply lose it. Who else would be a better Influencer for a restaurant? - 22 -
They have to spend thousands of dollars every month on lunches. They have control over what they buy for their doctors offices. They are connected to many other pharmaceutical reps who have the same kind of influence They personally earn better than average incomes and make great customers themselves. They re actively talking to people everyday. Much of the time they re chatting with the office staff while they eat lunch. And what s one of the common topics restaurants. So take some time to think of your own influencers. Then, reach out to them, incent them to join your loyalty program and ask them to spread the word to others. - 23 -
GO GET EM! These are just a few ways to charge up your loyalty program enrollments. Hopefully, this information will spark hundreds of ideas in your head. So many you can hardly wait to put them into action. Just remember; keep your program simple, think about the value from your customer s point of view (WIIFM) and be creative. - 24 -