The greatest revenue-generating potential a loyalty program can tap into is a brand’s segment of customers who visit sometimes but not always. We have seen this proven time and again across more than 300 reward programs.
Each segment of customers visits at a particular frequency. Customers with medium-to-high frequency are giving the brand nearly all of their possible visits. Since they are already your biggest fans, getting them to visit you more is going to be tricky. On the other hand, low-frequency customers are visiting your brand occasionally, but other brands are being visited by them more frequently. The potential for your team to move low-frequency customers into a higher-frequency segment is where the value of any successful loyalty program comes into play, as the goal is to steal visits from the competition.
So, if the value of your loyalty program depends on your ability to attract lower-frequency members, how do you do it? There are three key factors. […]
The 2016 Paytronix User Experience was full of valuable insights – we reviewed program structure, hot promotions, and, most importantly, heard from you, our clients about how you leverage our software to take your program to the next echelon.
During the conference, it was my privilege to present tactics our clients can use to amp up their campaigns. I was joined by Data Insights strategist and resident loyalty powerhouse Christina Hurley. Together, we dissected campaigns, addressed relevancy drivers, and unveiled our 9 Gold Standard Campaigns that repeatedly drive material value for our client base.
A dissected campaign is comprised of three factors: segmentation, message, and reward. Any single campaign can include one or more combinations of these. For example, a typical “Birthday” reward has the following components: […]
It’s rush hour on a weekday and a potential customer, let’s call her Sarah, is driving along a busy and traffic-jammed road. She’s had a long day at the office, but she can’t go straight home just yet – she’s noticed her gas tank is low. It’s time to fuel up.
After crossing through a clogged intersection, Sarah sees two convenience stores with gas pumps: Store A the right side of the road, and Store B on the left. Buying gas at Store A would certainly take less time – one simple right turn off of the street and she’s in the lot pumping fuel. Making a right turn out of the lot once she’s finished should be smooth going, too. To get to Store B, however, she’d have to wait for the backed-up traffic in the opposite lane to either pass entirely, or wait for a kind soul to let her through the lane into Store B’s lot. Either of those waiting options requires more time and potential frustration, and leaving Store B would require yet another left turn. Which convenience store will she choose for her gas purchase?
Sarah turns left, deciding that visiting Store B is worth waiting in traffic. Why would she do this?[…]