5. Loyalty Drives Profits
On average 15% of customers are loyal
to a single retailer
Imagine what the impact would be to your profits if you increase that
15% number.
In the book “The Loyalty Effect,” it is suggested that increasing your
loyal customer base by 5% can double your profits.
85%
15%
Loyal
Customers
50% 50%
Disloyal
Customers
Those consumers generate 50% of
company’s profits or more!
6. So, What’s The Problem?
Acquiring Customers Is Expensive.
Keeping Them Loyal is Difficult.
7. Local Retailer
Stop The Madness!
• Expensive:
• Search Engine Optimization,
Pay Per Click, Print, Direct Mail,
Email Marketing, and Daily
Deals are all expensive and
complex with mixed results.
• Difficult and Time Consuming:
• Paper punchcards (no data or
re-marketing capability to the
consumer)
• In-store hardware (install and
maintain)
• POS systems (train/maintain)
• Pushing rebates on consumer
credit cards (high friction with
consumers)
• QR Code Scans (high fraud)
9. Four Simple Steps
1) Shop 2) Verify 3) Collect 4) Cash Out
Shop at the
places you love.
Take a photo of
your receipt to
verify your
purchase.
Collect
“punches” on
your punchcard.
Cash Out when
you’ve earned
enough punches.
The consumer is in and out of the app in less than 10 seconds to
get credit for their loyalty.
14. Twitter loyalty
• Full Name
• Gender
• Date of birth
• Interest Keywords
• Relationship Status
• Photograph
• Wordpress
• Blogger
• LiveJournal
• Twitter
• Any XFN or FOAF
enabled website
• Personal shopping
hotspots
• Products they
purchased
• Money spent per
category
• Level of brand loyalty
• Repeat visitor frequency
15. It Just Works!
• No integration with your POS
• No hardware needed
• No sales staff training
• No upfront costs
• No maintenance
• Consumers don’t need to connect
credit cards to earn rebates.
25. Merchant Success Kit
Kickoff Materials:
– Send an email to your mailing list inviting them to
the “event” of joining their rewards program.
– Tweet offers in Punchcard
– Facebook offers in Punchcard
(Front) (Back)
(Front) (Back)
31. Punchcard is an Idealab Company
Idealab was founded in Pasadena, CA in 1996 and is based at 130 West Union Street,
Pasadena, California. We are one of Pasadena’s best and most successful companies.
We are of the most successful technology accelerators / Incubators in the USA and has
funded, collaborated and launched many companies with a combined value in the billions
of dollars. Here is a sample of the companies Idealab has successfully built and launched:
32. Loyalty Rules
1. Make it easy to engage. And engaged customer is less likely to defect.
2. Create "motion and commotion. Don’t compete on price alone.
3. Segment & target your best customers. Identify new sources of revenue.
4. Focus on your brand. It is, after all, why your customers are there.
5. Customize the benefits. Make them personal – and relevant.
6. Show gratitude. Thank customers for doing business with you.
7. Reward Customers for saying good things. Good word of mouth starts with loyalty.
8. Make it fun. Nobody wants to have to work at being a good customer.
9. Keep in contact. With both existing and past clients on a consistent basis.
10. Give to get. Be proactive to build an affinity relationship with your customers.
