Loyalty Marketing is the Only Marketing You Need

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Loyalty marketing may be the only marketing you ever need to do. Experts agree that loyalty marketing is one of the most effective and efficient froms of marketing. With the rapid growth of social media, it is more relevant than ever before for small businesses.

Our guide to loyalty marketing will detail:
1. Data from experts on loyalty marketing and the results that it achieves
2. Key drivers of customer loyalty
3. A framework for measuring returns from your loyalty program
4. Practical tips for using loyalty marketing to increase your sales

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Loyalty Marketing is the Only Marketing You Need

  1. 1. Loyalty Marketing Is the theLoyalty Marketing isOnly Marketing You NeedOnly Marketing You Need
  2. 2. Experts agree that loyalty the most effective and highest return marketingCustomer loyalty is the single most important driverof growth and profitability.HARVARD BUSINESS REVIEWRetailers with loyalty programs, on average,are 88% more profitable than competitorswho do not.DELOITTE RESEARCH SURVEYIt is 6 to 7 times more to acquire a newcustomer than to retain an existing one.BAIN & COMPANY 2
  3. 3. Loyalty marketing is more relevant today than it ever has been•  Your biggest asset is your existing customer base and foot traffic•  Data shows that loyalty programs can increase customer visits by 20 percent or more•  With social media, each of your customers can now share your brand with hundreds of others•  Technology can now automate most of your loyalty marketing needs•  It’s marketing that’s fun and makes sense! 3
  4. 4. Studies show that loyalty is driven by multiple factors •  Quality products and service are critical –  88% of consumers say that quality is a key factor in their decision to remain loyal to a brand –  72% of consumers identified customer service as a top priority •  First impressions make a difference –  48% of consumers said that the most critical time for a company to gain their loyalty was when they the make their first purchase or begin service •  Loyalty programs are an additional driver –  54% of consumers would consider increasing the amount of business they do with a company for a loyalty rewardSource: CLICKFOX BRAND LOYALTY SURVEY 4
  5. 5. Loyalty program ROI is driven by visitfrequency, increased spend, and promotions Framework for Calculating Loyalty Return $ Visit Spend More Participate Reward Program Net More Per Visit in Costs Costs Revenue Frequently Promotions Increase 5
  6. 6. Driving 20-35% increase in visit frequency via a loyalty program is attainable Create a Enroll as Facilitate Compelling Many As Increased Loyalty Program Possible Frequency •  Make your rewards •  Make it easy to enroll •  Customers will naturally attractive and start coming more as memorable •  Train your staff to ask they near their rewards before every purchase•  Make the first “Do you have our loyalty •  Remind them at the reward attainable card?” point-of-sale how close after a few visits they are to a reward •  Reward staff for•  Build multiple enrolling more •  Recognize and celebrate reward tiers (after 5 customers VIPs visits get X, after 10 visits get Y) •  Shoot for over 1K •  As they start customers enrolled experiencing rewards, you will see their visit frequency increase even more! 6
  7. 7. Think about a spend-based rewards to reward your most valuable customers Every $5 Get 5 Points Every $50 in Spend Every 50 Points, Get a Coffee Get a Free Sub Spend $100 on Spend $100 Stationary, Get Get a Free $5 Off! Medium Pizza 7
  8. 8. Be sure to collect customer contact info whenyou enroll customers into your loyalty program Industry Average Open Rates Text message marketing is one of the most effective ways to distribute timely promotions 8
  9. 9. A compelling text message promotion is easy to write•  Headline –  Pizzeria Uno’s Friday Happy Hour Special is On!•  Call-to-Action and Offer –  Come in today at 5 pm for Half Off Drinks and Appetizers!•  Opt-Out –  Text OFF to unsubscribeLoyalty programs for small businesses have 1K+ members.Text message promotions can drive 4%+ conversion (40+ responses) in a single day. 9
  10. 10. FiveStars is pioneering loyalty automation FIVESTARS LOYALTY AUTOMATION PLATFORM We take care of everything Point-of-Sale Customer FiveStars Relationship Engagement Card Manager Toolkit•  Customer info right •  Simple technology •  Simple segmentation on the POS everyone can use •  Text or email campaigns•  Never slow down •  Impossible to lose the line •  Social media integration •  Over 600K cardholders•  Built in fraud control Want a free loyalty consultation from FiveStars? Visit go.fivestars.com/demorequest 10

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