We know that a lot of Stampin'Up! demonstrators, along with the majority of business we deal with in our daily lives, offer Loyalty Cards.
If you don't have a loyalty program, I want to share with you a couple secrets to running a successful loyalty program.
If you already offer a loyalty program to your customers, consider this some food for thought.
1) Why Offer a Loyalty Card
There are 2 reasons to offer a loyalty card to your customers: to retain customers who make purchases and to maximize the amount of profit per customer. In other words, it is to help build your business and your profitability. So we want to keep our customers buying from us and we want to create more sales.
2) What to Offer
Remember that money is not the only motivator. Look at your customer base. Would your hostesses be interested in a different kind of loyalty program than the person who belongs to one of your clubs? Feel free to offer different things to different customers. Money, time, special treatment….these can all be good offers depending on your customers
3) Out of the Blue Loyalty Program
An example of this is a thank you card with a coupon good for free shipping on their SAB order of $100 or more in January. A surprise thank you does more for customer loyalty than an expected reward
4) Shift Behaviors
Giving a discount of X when Y is spent is not a good way of providing profitability if your customer was already going to buy X. So if you give free envelopes with a $50 purchase and they would have bought envelopes from you anyway you are actually losing money. So it should get your customers to stretch a little, spend a little more, etc so that it adds real value and has them change their shopping behavior.
5) Do your Homework
How much does your average client spend?
When is your slow time?
How many times a year does your hostess host a workshop?
How much money do your club members spend each month?
It is impossible to create a meaningful loyalty program if you don't know these answers AND it is impossible to determine if your loyalty program is working is you don't know these answers.
So here are the 4 keys to an Awesome Loyalty Program
1) Easy to Use
If I need a spread sheet to keep track I won't do it.
Make it easy for your customers to understand. Do X get Y.
Host 2 workshops in 6 months get a free stamp camp registration.
Place a $50 order December 15 to December 31 get 2 punches
2) Change how rewards are earned based on promotions
Would it not be ridiculous to offer loyalty points for every $25 spent in February when SU! rewards them at $50?
Or offer the same rewards to hostesses who host in February vs December?
If you know that your customers typically spend $100 each in February, then let them earn a punch when they spend $150.
December hostesses can earn free admission to your January stamp a stack
Loyalty cards should form new shopping behaviors
3) Sign up Bonus
Give them a surprise sign up bonus. Do not say, "And when you sign up for my Customer Loyalty Card you receive a bonus of…." that is kind of a bribe. And we are way too cool to need bribes.
Rather, send them a card with a note that says,"thank you so much for signing up for my customer loyalty program. As one of my preferred customers you have already earned X" You will be a rock star!
4) Promote it everywhere
Your blog, your fb page, twitter, your business card.
Good luck, and be sure to email any questions to [email protected]
Change Your little Corner of the World!