As small businesses attract customers through loyalty programs
His Work / / December 26, 2019
according to Pareto principle20% of customers generate 80% of the profits. And it's regular customers. The increase in their number - one of the most important tasks of any business, especially in the current crisis. To this end, organizations often use a variety of loyalty programs, offering bonuses, discounts and other benefits.
Meet Olga, her small women's clothing store. Olga agree with all the above and also wants more regular customers. But it seems that the loyalty program - it is very expensive, difficult and only by large companies.
Loyalty Program? What does this do? I just want to attract loyal customers and is willing to do them any discounts. How do I organize all this?
Olga
Let's try to help her.
1. Choosing a format
First of all, you need to choose the format of our loyalty program. There are two types of programs: the coupon and bonus. Opinions and assume the discount, expressed as a percentage. The bonus programs buyers get virtual points (bonuses), which can be exchanged for a gift or for the same discount. Bonus programs a little more difficult to implement, but they are more flexible, and easier to complete ahead of schedule, if it is not
result.Olga does not want just to provide discounts, it is interesting version of the bonus program, where it can be installed and the number bonuses, and their cost.
Also, all of the loyalty program can be divided into savings and fixed. The cumulative amount of discounts (bonuses) increased along with the amount of purchases. Fixed assume a constant size discounts. Cumulative clearly preferable, but more difficult, as you have to solve the problem of customer identification and account of the amount of his purchases.
2. Implementation of loyalty programs
The most commonly used release discount or bonus cards. Cards are magnetic and barcode. Apart from the card, you will need equipment to read them, a magnetic card reader or barcode scanner. The scanner is connected to the computer, on which the specialized software, for example 1C. The expenses must be added professional fees for setting up the system.
The advantages of plastic cards: the automation of customer identification process and the calculation of bonuses, storing customer information in a convenient way. If the average check is small and / or large flow of customers, it is the best option. But Olga is not suitable as creates a substantial budget for its expenses.
The following method of customer identification - on any unique code. For example, a phone number or name. In this case, the seller is looking for a hand to the base of the buyer and his charges bonuses (or make a discount). The base itself can be stored in different formats. In the simplest embodiment, this Excel. Plus the low costs to run, but the main drawback - the cost of time seller. Such a system is useful for customers who do not need to carry a card. As a result, discounts and bonuses will be more likely to use.
You can do without personalization. For example, the supermarket chain "Magnit" shares periodically arranges, during which customers give out stickers. Collect a certain number of stickers - you get a discount or a gift.
To save on printing, you can print labels instead of coupons and hand them out to customers. Accumulate and produce the necessary number of coupons buyer gets a discount (gift).
Another variant of this system practiced company Yves Rocher: regular customers were given cards, which put a stamp marking the number of purchases.
Bonuses are not tied to a specific client: coupons and stickers can be transferred to anyone. But Olga believes that it is not scary for her. Apparent depersonalize plus loyalty program - no need to maintain a customer base. Apparent it because it is a "magnet" this base is not necessary, but Olga wanted to keep in touch with their customers, and she needed their contact.
3. Improving Program Performance
The purpose of the loyalty program do not thank you for purchasing and encourage to make a new one. Therefore, participants in the program should be periodically reminded of the store, bonuses and discounts. When the customer registration in the program need to know his phone number and email address and try to achieve the consent to receive information materials. modern services mailings help you keep customers informed of the latest earnings, stocks and other news.
Psychological research shows that people are more willing to participate in the programs, where discounts and bonuses are given at the first purchase, when the card is issued.
It is also known that the active, active consent increases the chances of participation. It is desirable that the client himself wrote on the application form at least "agreed to participate" and signed. The more that by law you must obtain permission to process personal data.
All good things must come to an end. You can just limit the duration of the loyalty program, such as a year. Introducing temporary restrictions on the action of discounts and bonuses, you achieve two goals at once. Firstly, this reduction program costs. Second, the lack of time may spur people to additional purchases, to have time to use the accumulated bonuses. Although some of these restrictions, on the contrary, repel.
After reading all that we wrote here, Olga decided to distribute the coupons, because they do not want to put the seller until the computer. Now she is left to decide for what amount it will distribute these coupons and that buyers will exchange them. But this is a purely personal decision.
If you have experience in the implementation of loyalty programs small businessWrite about it in the comments. Promise Olga reads them.