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: […]
Every marketer has the goal of compelling their customers to live up to their potential. Whether that is through peer measurement tactics like running a tiered loyalty program, or individual competition tactics like a visit challenge, there are many ways to drive more visits and spend. One element that many marketers fail to consider, however, is geographic potential. What exactly does that mean? Let’s dive in.
Geographic potential is the highest frequency with which a customer can visit your restaurant or retail locations based on their proximity to them. Marketers might think they have the geographic information they need about their customers because they ask for an address when a customer registers for their loyalty program. While most customers will probably provide their home address, does that really paint the full picture of their geographic whereabouts? Of course not! If you want to capitalize on the geographic potential of your audience, you need to paint the full picture of where they are spending their time. Say a member of your loyalty program – let’s call him Joe – provides his home address when he signs up for your program. You have a location one mile away from Joe’s address, and you send him lunch offers on a regular basis, but he never redeems them. What gives? It turns out that Joe works 20 miles away from where he lives, so he is never in the area around lunch time. A better use of marketing resources would be to send him dinner offers. […]
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. […]
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. […]
Turn customer engagement into meaningful guest experiences.