Target Low-Frequency Customers. Here’s Why.
The greatest revenue-generating potential a loyalty program can tap into is a brand’s segment of customers who visit sometimes but not always. We...
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Is your brand tapping into these three unshakeable pillars of guest loyalty in 2025?
1 min read
Oct 12, 2017
With a greater understanding of customer spending and visit habits, marketing becomes more agile, is able to make informed decisions, and can ultimately compel repeat visits and increase baskets through relevant engagement.
There are three main factors that make a loyalty program successful:
1. A well-designed program. Core loyalty programs typically motivate members to increase visits and spend. Customers need to feel the value of being a member. They should be earning a reward around every 4 to 6 visits.
It's best to make sure you have low-value redemption options such as a cup of coffee or a candy bar that customers can work towards redeeming and feel as though they are being rewarded fairly. Running various kinds of promotions is another key component in a well-designed program.
Promotions keep the program interesting and fresh in the eyes of the customer. Getting a surprise reward makes customers excited and more willing to engage in the program.
2. Consumer packaged goods (CPG) deals that are aligned with your brands’ goals. Vendors have their own interest that may not always align with your bottom line. Ensure CPG-sponsored promotions are driving extra traffic to your store, or add incremental spending.
Good relationships with vendors allow your brand to work with them on promotions and ways to effectively use their funds. Instead of running a buy one get one free promotion you can use these funds in different ways to drive more visits and spend.
For example, drive more full price purchases of an item and in return, your customers can earn bonus points towards their next reward.
3. Support from all levels of your organization. Programs succeed when executive buy-in is present. Harnessing the influence that the top of the organization wields reaches all aspects of the program from motivating general managers to train staff and be accountable for the program metrics in their district to addressing franchisee concerns about discounting.
When buy-in is present throughout the entire organization, brands will try new things and continually evolve the strategy that makes an impact on the business.
The greatest revenue-generating potential a loyalty program can tap into is a brand’s segment of customers who visit sometimes but not always. We...
Loyalty programs can have an astounding impact on your business, increasing visits, spend, and overall revenue immediately and for years to come. ...
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Loyalty programs are all about connecting with your customers and creating a great experience for them whenever they interact with your brand.
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