How To Build A Devoted Customer Base

LAUREN LICATA

SENIOR DIRECTOR OF MARKETING

Who Are We?

8M+MEMBERS

12K+LOCATIONS

100M+VISITS

Customer Acquisition

Customer Retention

VS.

STREET FIGHT MAG80%of SMB Merchants said customer acquisition was their

main priority.

8%

Customer Loyalty vs. Customer Acquisition

said customer retention was a priority.

Customer Loyalty vs. Customer Acquisition

Building loyalty with 5% more customers would lead to an increased average profit per customer of between 25% and 100%

(The Loyalty Effect)

Loyal customers make up roughly 20% of your total customer base, but they account for about 80% of total revenue.

(Entrepreneur)

VIP and loyalty program members are 70% more likely to spread the word about your business.

(Loyalty 360)

Customer Loyalty vs. Customer Acquisition

You need NINE first time shoppers

To reach the conversion of ONE repeat customer.

66% of small businesses don’t have a

loyalty program.

34% of small businesses do have a program.

SOURCE: BIA KELSEY

Customer Loyalty vs. Customer Acquisition

46% of those are digital.

54% of those are NOT digital. (paper, verbal, other).

4 Types of Loyalty Programs

Types of Loyalty Programs

Southwest AirlinesBellyDiscover Rewards

Starbucks

Sephora

CVSWalgreens Barnes & Noble Petco

Panera Bread

Panera Bread

Best Buy

Papa John’s

Safeway

Target National Car RentalPlenti

PlentiPOINTS BASED

SPEND BASED

TIERED

DISCOUNT

COALITIONHilton HHonors

Types of Loyalty Programs

Southwest AirlinesBellyDiscover Rewards

Starbucks

Sephora

CVSWalgreens Barnes & Noble Petco

Panera Bread

Panera Bread

Best Buy

Papa John’s

Safeway

Target National Car RentalPlenti

POINTS BASED

SPEND BASED

TIERED

DISCOUNT

COALITIONHilton HHonors

Types of Loyalty Programs

Southwest AirlinesBellyDiscover Rewards

Starbucks

Sephora

CVSWalgreens Barnes & Noble Petco

Panera Bread

Panera Bread

Best Buy

Papa John’s

Safeway

Target National Car RentalPlenti

POINTS BASED

SPEND BASED

TIERED

DISCOUNT

COALITIONHilton HHonors

Types of Loyalty Programs

Southwest AirlinesBellyDiscover Rewards

Starbucks

Sephora

CVSWalgreens Barnes & Noble Petco

Panera Bread

Panera Bread

Best Buy

Papa John’s

Safeway

Target National Car RentalPlenti

POINTS BASED

SPEND BASED

TIERED

DISCOUNT

COALITIONHilton HHonors

Types of Loyalty Programs

Southwest AirlinesBellyDiscover Rewards

Starbucks

Sephora

CVSWalgreens Barnes & Noble Petco

Panera Bread

Panera Bread

Best Buy

Papa John’s

Safeway

Target National Car RentalHilton HHonors

Plenti

POINTS BASED

SPEND BASED

TIERED

DISCOUNT

COALITION

5 Common Loyalty Program Mistakes

Common Loyalty Program Mistakes MISTAKE #1

Creating Rewards That Are Not Valuable To Customers

Common Loyalty Program Mistakes

A Poor Customer Enrollment Process

MISTAKE #2

Common Loyalty Program Mistakes MISTAKE #3

Not Promoting Loyalty Program To Customers

Common Loyalty Program Mistakes MISTAKE #4

Not Sending Targeted Offers To Your Customers

Common Loyalty Program Mistakes MISTAKE #5

Initiating A Program Without Understanding How To Track Effectiveness

How To Market & Manage Your Loyalty

Program

Send An Announcement Email

Engage Your Employees & Staff

Tweet, Post & Share It

Iterate Rewards Based On Customer Response

Market Your Program In-Store

How To Market & Manage Your Loyalty Program

Send An Announcement Email

How To Market & Manage Your Loyalty Program

Engage Your Employees & Staff

How To Market & Manage Your Loyalty Program

Tweet, Post & Share It

How To Market & Manage Your Loyalty Program

Iterate Rewards Based On Customer Response

How To Market & Manage Your Loyalty Program

Market Your Program In-Store

How To Measure Effectiveness Of Your Loyalty Program

New vs. Returning customer %

Net Promoter Score

Customer Visit Frequency

Customer Engagement

Plan For Omni-Channel

Remember To Put The

Customer First

Consider A Digital Loyalty Program

But, What Next?

Focus on Customer Retention

Thank You!LAUREN LICATA

lauren@bellycard.com @laurenlicata