Price-sensitive customers are far too often ignored by marketers. The common thread of thinking is that they are tough to sell to, but with the right strategy that is not the case! In fact, this customer segment has much more spending potential than you might expect.
Let’s say that your stingy customers have shown in the past that they are able to visit your locations three times per month, but generally they come in one time per month (these numbers align best with a quick-service restaurant concept – adjust them to fit your company’s business model). These stingy customers – the people who either visit infrequently and/or spend very little with each visit – have a lot of room for growth because they’ve shown that they are capable of spending more.
In order for these price-sensitive customers to reach their spending potential, they must be challenged in a relevant way. Your marketing tactics should ask them for something you know they are capable of achieving. If you ask a stingy customer to behave the same way as a loyal one, the daunting task could be a turn-off altogether. You’ll need to track customer behavior with either a loyalty or CRM program and then analyze the resulting data. When you’ve identified the true spending potential of your stingiest customers, here are the two best ways to compel them to spend more: […]
At over 75 million strong, millennials dominate the U.S. population. This generation born between 1980 and 1996 holds around $1.3 trillion in spending power, according to Boston Consulting Group, and they haven’t even reached maximum earning power yet. Your brand needs to connect with millennials now – it’s crucial to the future of your business.
Building relationships now with millennials has immediate benefits, but it pays off even more in the long-term. Capture their attention early, and they could remain loyal to your brand for the rest of their lives, even passing on their love of your brand to their children. But, getting their attention now is tricky. […]
So. You’ve launched a great loyalty program and your staff members are handing out a lot of activated cards to customers. Why aren’t enough of your customers registering these cards? Until the customers register their loyalty cards by entering their information, you don’t know anything about them and they can’t redeem any rewards. Your program depends on these registrations, but they’re not happening enough. Sounds like a lose-lose, right?
One restaurant chain figured out how to turn this scenario into a win-win. National Coney Island (NCI) is a quick-service restaurant serving Coney Island-style hot dogs and cuisine to the Metro Detroit area. They realized during the summer of 2014 that only 30% of their Coney BucksTM rewards cards were being registered. That means that a whopping 70% of customers were accepting rewards cards but not registering their account. Because NCI couldn’t get to know those guests or track their information, they weren’t able to give them the most relevant offers possible. […]
Bravo Brio Restaurant Group (BBRG) has at last found the right rewards rhythm after launching, testing, and then relaunching its rewards program. After putting a lot of resources into discovering what works best for their audience, BBRG’s program structure now suits the needs of its customers. The catchy name seamlessly ties everything together: Eat, Repeat, Reward. Naming a rewards program is a delicate task, and BBRG totally nailed it on all fronts. Here’s why: […]