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Loyalty Presentation

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Loyalty Presentation

  1. 1. Selling Loyalty, Gift Card & Reward Programs<br />
  2. 2. What Are We Talking About Today?<br />Gift Cards<br />Loyalty / Rewards Programs<br />Marketing Programs (Couponing & Mobile Marketing)<br />
  3. 3. WHY WOULD A MERCHANT WANT A LOYALTY, REWARD OR GIFT CARD PROGRAM?<br />
  4. 4. Compete With Big Box Retailers<br />
  5. 5. Competitive Pressures<br />
  6. 6. Keep Up With The Competition<br />Kohl’s Cash <br />Expiring future cash rewards based on current purchase amount<br />Dunkin Donuts<br />Buy 9 cups of coffee, get one free<br />Best Buy RewardZone <br />Earn points based on purchases toward gift certificates<br />Famous Footwear <br />Birthday coupons<br />
  7. 7. How Does This Benefit The Merchant<br />Increases Revenue<br />Increases Retention Rate<br />Easy To Use<br />Cost Effective<br />
  8. 8. Loyalty Statistics<br />Increase same store sale – 4.5%<br />Increase retention – 14%<br />Increase average purchase and visits – 24%<br />
  9. 9. Gift Card Statistics<br />Average gift card load - $28.54<br />75% of gift card shoppers spend 60% more than the value of the gift card<br />Breakage – 18%<br />
  10. 10. Five most popular programs<br />
  11. 11. Club Programs<br />A lemonade stand offers 5 glasses of lemonade for a pre-purchase price of $2 versus individual glasses for 50 cents each (Savings of 50 cents)<br />
  12. 12. Discount Program<br />A promotion states if you spend $500 you get $150 off, $250 you get $75 off, and $100 get $25 off <br />
  13. 13. Punch Card<br />When you buy 10 ice cream cones at an ice cream parlor your 11th is free<br />
  14. 14. Cash Back<br />When you spend $75 you get $10 loaded back on your loyalty card<br />
  15. 15. Custom Programs<br />When you spend $100 on merchandise you receive a free karate lesson<br />
  16. 16. Additional Features<br />
  17. 17. Mobile Marketing and Communication<br /><ul><li>Text and Email – coupons or special reminders (customized)
  18. 18. Send broadcast message or single message at the point of sale
  19. 19. Send messages based on program parameters</li></li></ul><li>Social Media<br />Merchants can connect cardholders to their social media site<br />Award points for tweets and posts<br />
  20. 20. Merchant Portal and Reports<br />Collect a cardholder database<br />Transaction reports<br />Liability reports<br /><ul><li>Store basic demographic information and custom fields specific to that merchant</li></li></ul><li>Web Terminal<br />www.mywebterminal.com<br />
  21. 21. Cardholder Portal<br />www.getyourbalance.com<br />
  22. 22. Custom Artwork<br />Before<br />After<br />
  23. 23. Small Business<br />Sole proprietor<br />
  24. 24. What’s On A Merchant’s Mind<br />Growth!<br />Keep current customers coming back<br />Acquire new customers<br />Persuade them to come back<br />Persuade them to spend more<br />Persuade them to be an advocate <br />Costs!<br />Limited time<br />Limited expertise<br />Limited money<br />
  25. 25. Marketing<br />Email Marketing (Constant Contact) $ 15/month <br />Text Messaging (Street Savings) $ 40/month<br />Coupon Circulars (¼ page ad) $300/month<br />ValPak (10,000 homes) $350/mailing<br />Postcard Mailing (1,000 pieces) $500/mailing<br />Local Newspaper (¼ page ad) $200/week <br />
  26. 26. Present Your Case – Loyalty<br />Increase same store sale – 4.5%; If your business has an average annual revenue of $360,000, you should be able to increase sales by $16,200<br />Customers that carry a loyalty card will spend 24% more per visit i.e. if your average purchase per visit is $50 today, You should be able to increase this to $62<br />Most merchants use ValPak as a marketing vehicle - $350/mailing for 10,000 homes. With a 2% response rate = $1.75 per responding household; Using text message you should have a 95% read rate and >35% response rate = $0.29 per responding household<br />
  27. 27. Present Your Case – Gift Card<br />Average gift card load - $28.54<br />75% of gift card shoppers spend 60% more than the value of the gift card; Cardholders will spend 60% ($17.13) greater than the value on their gift card<br />Breakage – 18%; Cardholders will not spend 18% ($5.14) of the value on their gift card<br />
  28. 28. Increase Marketing Effectiveness<br />Save time and money by consolidating email, text messaging and gift card programs <br />Capture customer information at the point of sale to build a database<br />Reward customers at point-of-sale rather than at another time, avoiding fulfillment costs<br />Instantly trigger messages/offers to individuals based on activity<br />Target selected customers rather than everyone<br />

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