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?
Convenience store forecourts haven’t changed much in the past 50+ years…which means that they’re the ripest with possibility.
Certainly, pay-at-the-pump options and TVs embedded in the pumps themselves have added ease and entertainment to the experience for customers, but there is much more that convenience store owners could do to optimize the experience for both their loyalty programs and their revenue.
With technology making it easier than ever to add more facets to our promotions and programs, it’s well worth exploring exactly why the digital landscape can meet up well with this traditional, drive-up-and-pump interaction. […]
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. […]
When Amazon came onto the scene several years ago, other online retailers were worried. Then, as they expanded, brick and mortar retailers became worried.
And now, with the unveiling of Amazon’s PrimeNow and AmazonGo initiatives, conveniences stores are getting worried. And should they be? Absolutely. But is there still a way to beat Amazon at its game? You bet.
If you’re not familiar with PrimeNow and AmazonGo, here’s a quick rundown. PrimeNow is Amazon’s online marketplace for daily basics, offering delivery of select items within a two-hour window. It’s mostly in bigger cities right now, but Amazon has plans to roll it out much more widely.
AmazonGo is Amazon’s brick and mortar store with an employee-less feel: Customers tap their phone as they enter, select their products, and then simply tap their phone to pay as they exit.
For convenience stores especially, both of these new concepts present some serious competition. But, as we’ll see in this post, Amazon can be beat.
The key to winning against Amazon comes down to two things: Understanding what Amazon does well, and then putting those same tactics to work for you.
So what does Amazon do well? […]