It’s no secret that consumers want buying things to be easy, fast, and, most of all, convenient. After all, there’s a reason “convenience stores” became popular to begin with.
Unfortunately, today’s average c-store’s convenience factor has been overtaken by other kinds of stores, not to mention websites and apps. But that also means there’s a huge opportunity for convenience stores to reclaim their “convenient” crown.
The numbers don’t lie: 72% of consumers polled would buy more items if a brand hand a convenient delivery option. At the same time, 63% of consumers would pay higher prices for items that they could receive on demand—and 54% browse stores with the expectation that delivery will be an option. […]
It’s likely you don’t need to be sold on the efficacy of loyalty programs. But, just in case you need a little reminder, a recent study found that just a 5% increase in customer retention can boost profits anywhere from 25% to a whopping 95%. Clearly, loyalty and retention are still exceedingly important parts of your business.
But, at the same time, another study has found that active loyalty program members—those who are engaged and regularly participate in a program—has decreased 2% over the past few years.
And while 2% isn’t a huge number, there are a couple things to note. First, that tiny little 2% can represent millions in the industry and perhaps even hundreds of thousands of dollars to a restaurant or convenience store business.
Next, that 2% only reflects the recent trends. If it’s the sign of a downward trend moving forward, it could spell big trouble for loyalty-dependent businesses.
So why are customers becoming less active in the loyalty programs they signed up for?
Your brand needs to connect with millennials now – it’s crucial for the future of your business. At over 75 million strong, millennials dominate the U.S. population. This generation, born between 1980 and 1996, holds around $3.4 trillion in spending power in 2018.
The age gap in the millennial generation is the root of many marketing communication challenges. The 22-year olds could be just out of college with irregular daily schedules, limited budgets, and a single relationship status. While on the other end of the spectrum, 38-year old millennials are likely to be married homeowners with children. Do individuals from age 22 to age 38 have enough common characteristics to be lumped together as a single target audience?
Researchers commonly note the generation’s common characteristics as having short attention spans, an expectation for brands to cater to their personal needs, and very busy lifestyles. Basically, it all boils down to this: millennials demand that reward programs are Relevant, Simple, and Convenient. […]
Club programs enjoy perennial popularity as the foundation of rewards programs. At some point, nearly every person will have had a paper or digital punch card for the club program of a convenience store or restaurant.
But knowing that they’re popular and understanding why they’re popular are two different things. Recognizing the appealing aspects of club programs will help you make them even more effective.
As we mentioned in the introduction, it’s hard to find a simpler concept than “buy 3, get 1 free.” Even in the case of “buy 8 gallons of gasoline, get 1 free liter of soda,” there’s a clear correlation between action and reward. That means it’s easy for your customer to understand and easy for your staff to explain.
Equally important, your customer will know where he or she stands on the journey toward that free reward. […]