Archive for the “Loyalty” Category

Convenient Connections Summer Series: Clustering

The Paytronix Convenient Connections Summer Series is a five-part blog that explores successful loyalty campaigns that convenience stores can use to drive user engagement, win back customers, successfully segment customer groups, and ultimately drive incremental revenue. Look for the Summer Series throughout the months of August and September.

Because the concept of convenience stores came about in response to the rise of American driving culture, they were once primarily vendors of fuel, tobacco, and soft drinks. Hence, the c-store phrase “gas, Cokes and smokes.” 

Today, c-stores offer much more, from freshly prepared meals to basic grocery items; but many convenience store brands still see a large subset of customers that only visit the pump or pop into the store looking for tobacco. This leaves the brand with limited options, since gas’ and tobacco’s low margins and legal limitations make these difficult, if not impossible, to promote.  

That’s where clustering comes in. Clustering is a form of segmenting customers based on commonly shared behaviors or characteristics. It’s used to find distinctions among large groups that share a common trait to enable more a more personalized approach to marketing. This can take many forms, but a common use case lies in grouping customers based on items that drive them to visit. […]

Convenient Connections Summer Series: 1:1 Campaigns

The Paytronix Convenient Connections Summer Series is a five-part blog that explores successful loyalty campaigns that convenience stores can use to drive user engagement, win back customers, successfully segment customer groups, and ultimately drive incremental revenue. Look for the Summer Series throughout the months of August and September.

Humans are motivated by a lot of things, but few incentives work as well as that of free food.  

Right after the food incentive come money-savers: think 10 cents off a gallon or double points per purchase.  So it’s easy to understand the logic behind visit challenges, in which customers earn a small reward for coming in for an extra visit.   […]

Convenient Connections Summer Series: Basket-Building

The Convenient Connections Summer Series is a five-part blog that explores successful loyalty campaigns that convenience stores can use to drive user engagement, win back customers, successfully segment customer groups, and ultimately drive incremental revenue. Look for the Summer Series throughout the month of August.   

Getting a campaign off the ground is just the startOnce a brand has secured a solid loyalty base with a penetration rate of at least 15%, our minimum benchmark for successful programs, the program can be leveraged to drive various desirable behaviors – from more frequent visits to greater spend. The program can even be manipulated to drive members to purchase specific items 

Basket-building campaigns do just that: they are designed to build the consumer’s basket, either by encouraging them to purchase more, or in this case, to purchase a specific item. These campaigns work best when they target very active customers who not only visit regularly, but who have provided lots of data to the brand about their spending habits via the loyalty program.  

There are several ways to go about this, but each relies on check-level detail, or CLD, being collected for each loyalty member. This data – which shows not just how much the customer spent and when, but on what – is invaluable to the marketer trying to boost a specific product’s sales.  […]

Convenient Connections Summer Series: Nurture Campaigns

The Paytronix Convenient Connections Summer Series is a five-part blog that explores successful loyalty campaigns that convenience stores can use to drive user engagement, win back customers, successfully segment customer groups, and ultimately drive incremental revenue. Look for the Summer Series throughout the months of August and September.

A successful loyalty program has been proven to be the ultimate tool for the wise marketer. Loyalty programs drive customer engagement and spend, build and strengthen the relationships between the brand and the consumer, and provide invaluable insight into customers’ behaviors and preferences.   

A truly effective loyalty program must be cultivated and monitored, with regular tweaks and upgrades. This includes choosing the right campaign for the desired outcome, whether that’s winning back a lapsed customer or engaging a new loyalty member 

Engaging new members is critical as it not only shows the member the value in the program so they’ll continue to use it, but it’s also a primary indicator of whether that customer will continue to visit.  

Getting a customer to register for the program at all is already a strong indicator that they’ll return. But Paytronix data shows that customers who visit three times after registering have a nearly 90% likelihood to return. It’s around this point that the likelihood of a next visit plateaus, so that third visit is the goal to strive for.   […]