Tag Archives: brand loyalty

How to choose the best rewards for your loyalty program

There’s no question about the importance of having a loyalty program in place in order to increase brand loyalty and maintain relationships with valuable customers. But once you’ve made the decision to implement a program, you need to decide exactly what kind of system you want to use and what type of rewards you will give out.

For restaurants, and especially fast casual and quick-serve restaurants, there are three different types of loyalty programs that are the most popular and effective: Product Frequency Program, Automatic Rewards Program and Visit Frequency Program.

Product frequency program

A product frequency program is possibly the most popular loyalty program because it rewards customers for continually purchasing a specific product. This can also be referred to as a “punch program” because rewards are given after a customer earns a certain amount of punches, with a punch being given each time the specified product is purchased. All of those “Buy 10 Get 1 Free” promotions you see are product frequency programs.

This type of loyalty program works great for businesses that offer a simple menu with one item being the most popular. For example, a smoothie restaurant could easily implement a product frequency program because most of its customers come in for a smoothie, and therefore they can easily offer “buy 10 smoothies, get one free,” and it will be a reward that their customers actually want to receive and redeem.

Automatic rewards program

Automatic rewards programs are probably better known as a “points program” because customers earn a point for each dollar they spend and then are automatically given their reward once they reach a certain spending threshold.  There are two different types of rewards that can be given once the threshold is met: a product reward or a dollar reward.

A product reward would be something like: Earn 100 points and receive a free dessert, whereas a dollar reward would be: Earn 100 points and get $10 off your next purchase.

Both rewards are attractive to consumers, so you just need to decide what makes the most sense for your business.  If there is a product you offer that people love and would want to get for free, then offer that as the reward for earning points. If consumers often spend over $10 on a meal, then maybe you should give them the $10 off reward.

It really comes down to which is going to be easier for your business to compensate for after the coupons are redeemed.  For example, do you make enough desserts to give free ones away every day? Can you afford to lose the $10 off a purchase? Once you figure out the logistics, you can easily choose which reward to offer.

Visit frequency program

The visit frequency program is almost like the product frequency and automatic rewards programs combined.  Each time a customer comes to your restaurant and makes a purchase, they are given a punch/point. Then, after a certain amount of visits, they receive their reward, which can be a product reward, dollar reward, or a discount. For example, after 10 visits you can give a customer a free dessert, $10 off their next purchasloyaltye, or 10 percent off their next purchase.

The main differentiator of the visit frequency program from the other two is that you get to decide the minimum dollar amount spent that qualifies as a visit.  In other words, you can say that a customer must spend at least $10 in order to receive their “punch” for that visit.  This helps encourage buying behavior that is more beneficial for your business.  However, when deciding on this program, it’s important to set the minimum purchase amount at a reasonable level so that customers don’t get frustrated that they are never earning punches and thus feel like it’s not worth it to try and earn the reward.

 Source : qsrweb.com

Losing loyalty? 4 biggest missteps

There is more and more focus on keeping the customers you have; helping them to think about your brand each and every time they make a purchase. And now that those customers have become loyal, the chain of marketing messages has to be different.Make sure you’re not making these four mistakes that can hurt brand loyalty.These to my mind are four of the biggest mistakes that marketers make that lead to a loss of loyalty:

1. They can’t make the transition from sell to story – some brands put product targets ahead of relationship targets in the mistaken belief that if they sell more, they will earn greater loyalty. They keep using the same sales model with people who are already loyal to them in the belief that they have to keep convincing consumers to buy again and again and again. But, once a strong relationship is established, revenue is one of the outcomes of that relationship, not the qualifier, and that’s where more brands need to focus their attention. No loyal buyer wants to feel that they are only as important as what they last paid for. And no-one wants to feel taken for granted. Brands need to become much more adept at telling stories that keep loyal customers intrigued and wanting to become more involved. After the initial challenge of conversion comes the deeper challenge of immersion.

2. They’re afraid of conversation – many brands are afraid of debate and honest discussion. Conversation concerns them. It feels like a distraction from the real issues of getting out there, competing and making money. I’m always intrigued by how readily marketers agree that word-of-mouth is the most powerful way of winning business, and yet how so few seem to act on the logical extension of that thought – that WOM must be the most powerful way of keeping business.

3. They think a community is a high-maintenance relationship – so many brands say they welcome feedback when in fact they don’t. They listen to it. They probably record it. But that’s as far as it goes. Actually, they think of their front line as a defensive line and their frontline staff as a resource that is there to limit damage, absorb or deflect criticism, and basically function as a human answer machine service with scripts and carefully cured responses. But if you don’t give your people the permissions and the tools to genuinely interact, to ask questions and to feed back what they hear into the organization, you are paying a lot of people a lot of money to frustrate everyone by the book. It may look right operationally. It may function correctly by the numbers. But its greatest efficiency, in reality, is the streamlined manner in which a regimented contact center destroys the desire for interaction. In time, people switch off.

4. They stick with what they know and they tell themselves it’s what people want – the last thing any brand should do is treat its loyal fans as a static constituency, and yet so many do. The more they get to know their consumers the more they look to categorize them in ways that feel familiar. Problem- people are just not that simple. If you fail to test the boundaries with consumers who love the brand, all you continue to offer them is more of the same. That’s not exciting. The challenge for any brand is to bring its loyal customers with it as it evolves, so that they feel involved and included based on what they know, at the same time as they feel stimulated and intrigued by the new things that are presented to them.

Brand loyalty is basically about keeping people interested. It’s about elevating your loyal customers’ heartbeat over a sustained period of time. That’s harder than it sounds in a world teeming with distractions.