Loyalty programs are a great way to retain customers and keep them coming back to the store time and time again. In fact, by increasing customer retention by just 5 percent, brands can increase profits by 25 to 95 percent, which is why loyalty programs are a go-to marketing source. But there is one major problem with today’s loyalty programs – there has been a 2 percent decline in overall active member rates which leads to slower growth and profits for brands.
What is causing this decline in active participation, and how can brands turn it around to fix this problem?
There are a couple of new insights that help shed a light on the cause of this decline and the tactics that can mitigate and even turn around loyalty programs so they are profitable and engaging to customers. […]
If you have a teenage daughter or follow Liam Hemsworth’s life, then you probably recognize the title of this blog, which was inspired by “The Climb,” one of the many Miley Cyrus hit songs. I’m going to let you in on a little secret: Miley Cyrus is a marketing genius. But you don’t have to take my word for it – Business Insider, Huffington Post, and Entrepreneur Magazine all know that Miley Cyrus has some serious marketing chops.
Below are five lessons any marketer can take from Miley and apply to their own brand.
78% of millennials prefer experiences over things
"There's always gonna be another mountain,
I'm always gonna wanna make it move,
Always gonna be an uphill battle,
Sometimes I'm gonna have to lose."
1. Create an Experience for Your Guests - Miley Cyrus doesn’t just sing in front of a microphone on stage. In true pop culture fashion, her concertgoers are immersed in an overstimulating, audio-visual experience that includes synchronized dancing, elaborate props, costume changes, and much more. This is because Miley understands that 78% of millennials prefer experiences over things.* She leverages the tools at her disposal to create the best experience for her fans.
Today we caught up with Systems Administrator Paul Marrero of Uncle Julio’s, the person behind the award-winning campaign that Uncle Julio’s was recognized for today with a 2017 Loyaltees Award. Paul offered some additional insight on how he’s leveraging Paytronix and the Uncle Julio’s loyalty platform to make an impact.
Paytronix: Congratulations Paul, on Uncle Julio’s recognition as a 2017 Loyaltees Award winner. Thanks for taking the time to tell us a bit more about your loyalty platform today. As the System Administrator for Uncle Julio’s, you are the person responsible for designing the loyalty program, or the Uncle Julio’s Loyalty Czar as we’ve heard you called.
Paul: Thanks, the Uncle Julio’s team is honored by the recognition.
Paytronix: In talking with you about the Uncle Julio’s loyalty program, you mentioned having done away with your old email club in the process. How has the Paytronix platform replaced your previous email solution and how are you leveraging the integration of email and loyalty today? […]
There’s an interesting problem that restaurants with loyalty programs face. All of the behavioral data gleaned from these programs means that restaurants can easily identify their best customers: the people who spend the most and visit most frequently. And that’s very useful for creating profitable campaigns.
Running unsegmented promotions can cannibalize profit because your best guests will receive the same promotion as your less frequent customers. Your best guests are going to come in anyway, and discounting purchases they were already going to make can hurt profits.
Discounts and promotions designed to drive revenue should only […]