Are we one of those Groupon, LivingSocial, deal type companies? What We Do.
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Transcript of Are we one of those Groupon, LivingSocial, deal type companies? What We Do.
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Are we one of those Groupon, LivingSocial, deal type companies?
What We Do
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No. We are not. Our company offers loyalty programs that
are compliant with bank industy standards for security and privacy.
Therefore we are able to link your business offering to existing debit or credit cards consumers already have in their wallets.
This means no more crazy deals, no more cutting coupons, printing vouchers, mail-in rebates or adding yet another card to their collection of many loyalty cards.
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Why do you need a loyalty program for the customers you already have.
Why You Need It
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To increase their visits and spend more each time
1. Simply link your business to their debit or credit card.
2. We monitor their spending.
3. We score your customers.
4. You reward them with “cash rewards” or “free incentives”.
5. They increase their visits (frequency) and spend more each time.
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Now that you’ve rewarded your best customers, how do you get new ones?
NewCustomers
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Statistics show they tell friends!
82% of loyalty program members referred at least one person to their program.
42% of loyalty program members referred four or more.
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Where are we getting all of these
statistics?
Credible Source
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They also had a 2011 member survey which showed that:
70% of respondents said loyalty programs helped drive business during the economic downturn.
Nine out of 10 respondents (90%) said loyalty programs give them a competitive advantage.
Of those that currently operate a guest loyalty program, 84 percent plan to maintain or increase their program investment in 2011.
National Restaurant Association
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What % of your customers would you say are frequent patrons?(take a few seconds to answer it please)
Frequent Patrons
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The Answer
A study of restaurant owners indicated that they believe that 60% of their customers are “frequent” patrons.
Analysis of credit card transactions indicates that only 15% of customers could be considered “frequent” buyers.
Our loyalty program can easily increase the average of 15% to over 50% that are frequent!
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Are there proven-models that show loyalty programs work?
ProvenModels
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Yes, industries with high purchase frequency and stiff competition have
proven loyalty programs work
For grocery chains, participation is at 65%; for medium-size and larger hotel chains, 85%; for the major airlines, 100%.
Restaurants/ Bars & Nightclubs fit this profile - high-frequency patronage and stiff competition - making them prime candidates for effective loyalty programs.
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Who are you top 20% customers? How often do they visit? How much do they spend each time they visit?
When’s the last time they purchased?
Do you know your customers?
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If you don’t know the answers to the previous questions, you need analytics
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So if it works, why doesn’t everyone have a loyalty program?
Obvious Question
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Because Loyalty Programs are very expensive to implement
Only larger supermarkets, retailers, hotels, airlines, chains, etc have been able have loyalty programs , given the size and complexity a loyalty program entails.
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How expensive is it to launch a
Loyalty Program?
What’s the Cost?
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No upfront cost If you already have a VeriFone, Hypercom or Ingenico POS
terminal there is no hardware cost.
If you don’t, we can provide you with a PC based swipe of a stand-alone tablet for about $125.00.
LOYALTY PROGRAM COSTS:• Program Set-up (back-end programming) $0.00• Enrollment Page (customized/branded) $0.00• Merchant Login UI (monitoring/admin) $0.00• Daily Analytics (tracks & scores cardholders) $0.00• On-going Program Management (daily) $0.00• Customer Service for all your customers $0.00• Rewards (includes Credit & Redeem) *2% of sale
amount
*excluding taxes & tips
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Can you show me a return-on-investment calculation?
Smart Question
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An Illustrative Calculation for a single Restaurant
Assumptions: Single Restaurant/Club/Bar Location.
Annual Sales in Millions $2.5M
Total Guests 10,000
Total Members 2,000
Average Guest Check $50
Average Visits Per Year 5
Rewards: 5% cash back from total sale amount
No promotions to motivate additional visits or accelerate rewards.
Incremental Revenue as a Result of the Loyalty Program:
Visit More Frequently (20% increase in annual visits): $100,000
Buy More (5% increase in average check): $ 25,000
Total Spending Increase: $125,000
Costs:
Marginal Food & Labor (45%): $ 56,250
Rewards Costs (5% cash back): $ 6,250
Keeping It Local Program Costs (2% Fee): $ 10,000
Total Loyalty Investment: $ 72,500
Total Return: $ 52,500
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Close the Loop
Remember the 5% cash back that you rewarded back to your loyal customer with registered debit & credit cards?
We have the ability to “close-the-loop” on the “cash reward” you gave the consumer and only make the “cash reward” accepted and redeemed at your location.
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Call Today 1-800-409-8050
No long term commitments
No change in your “merchant processing”
No training required
Automated reconciliation (online)
Easy Step-by-step set-up (phone support)
Customized branded cards are also available.