Archive for the “Reward Programs” Category

Are Loyalty Programs on Their Way Out?

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?

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World of Beer’s ALEgorithm Knows What Customers Want to Drink

Craft beer sales are booming.

Transitioning from niche industry to nationwide phenomenon, craft beer has become big business. These unique and flavorful brews now account for more than 23% of U.S. beer sales, which totaled $111.4 billion in 2017.

But with an ever-increasing number of options, how do you choose a beer you’ll like? Some help is being provided by World of Beer, a restaurant chain that features about 50 craft beers on tap and hundreds more in the cooler.

To rise above the competition, World of Beer and Paytronix created the “ALEgorithm.” In addition to being a clever play on words, it offers suggestions in much the same way that Netflix and Pandora Radio do. Guests indicate which beers are to their liking and get recommendations for future ones to try.

Stuart Wilson, Analytics Manager for the Paytronix data science team, worked with World of Beer to make its vision a reality. He joined us for an interview and shared some insight.

Paytronix: Can you tell us why the ALEgorithm was created? […]

How to Capture Millennial Shoppers

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. […]

4 Reward Program Dilemmas Solved

Roger Dow, creator of the Marriot Rewards Program, once said, “The first two years, I had peers trying to kill this idea a hundred times over.”  Fortunately, Dow knew the key to tackling the program push-back is knowing how and when to present program results.

There are four dilemmas new rewards programs face. Read about them below and learn how to tackle them.

  1. Is my program working?

Regardless of the way you measure your program’s success, if you don’t have the team focused on the right things at the right time, there will be a misalignment of expectations among your colleagues. When you’re initially designing the program, […]