Are your customers looking for loyalty?
In the article ‘the Path to Greater Share of Wallet Lies in Digital Loyalty,’ Angela Hanson of CSNews.com writes about the importance of a high-quality loyalty program.
Seventy-three percent of customers are likely to switch brands if they don’t get a simple, personalized and consistent experience across every channel, including web, mobile, in-store, at the pump, and more, according to Punchh [a loyalty platform].
Chain retailers have big loyalty programs which may encourage customers to drive by in favor of the store down the road. Establishing a program, and getting customer buy in, can do the same for you. In the article ‘Loyalty Marketing is Far From Dead,’ Robert Jones describes pros and cons of implementing a loyalty program.
Research by Forrester found that customer engagement was higher amongst US consumers who were members of loyalty programmes. Their data suggests that the programs do influence where customers shop and those who are members of loyalty programs are more likely to rate customer experience as more positive. [smartinsights.com – Loyalty Marketing is Far From Dead]
Loyalty programs capture data on customer behavior
One big advantage of a loyalty program is the data you can capture on customer behavior. This will allow you to segment your customer base and observe their purchasing habits. Where are you growing and where are you falling behind? What group of customers is important to grow right now? Use this data to target your program, store signage, category management, and digital presence. Most importantly, it can be used to retain customers and reduce churn.
Whatever platform a c-store operator chooses, it should iterate over time, and they should not consider the initiative completed, [Lori Stout, Punchh] cautioned. “Loyalty is definitely not a set-it-and-forget-it kind of thing.” [csnews.com]
Use promotions to influence customer behavior
Loyalty programs are great tools for influencing customer behavior. A good loyalty platform will allow you to create campaigns targeted by customer segment. Do you have several gas-only customers? Target them with an offer for a free coffee with 10 gallons of gas or a discount on hot food to get them in the door. Suggest your coffee-drinkers try a breakfast Tornado or bakery item. Target your daily soda fountain super users with offers to tempt them into snacking. Get them out of their routine a few times to build a new purchasing habit.
Capitol can help you develop a winning loyalty program
There are a number of great companies offering customizable loyalty programs. We can help you select the right one for you based on your needs, your customers’ preferences, and your budget. Our graphics team will help with design and branding for cards, app customization, and marketing materials. We will consult on offers, facilitate discussions with vendors, and support you through the whole process of setting up, launching, and running your program.