Creating a loyalty bonus program yourself. Bonus vs discount loyalty programs: choose the best option. Loyalty discount program

Coffee shop: where to start, how to succeed. Advice to owners and managers Andrey Ulanov

10 Development and implementation of a customer loyalty program

Development and implementation of a customer loyalty program

There is only one boss - the client. And he can destroy everyone in your company, from the owner to the last employee, very simply - if he starts spending money in some other company.

Sam Walton

Although location is still the main reason for choosing a coffee shop, loyalty programs are among the top three determining factors after convenient location and quality of service. According to statistics, 64% of customers participate in loyalty programs, guided by savings.

Loyalty programs are relevant for organizations of all sizes where supply exceeds demand. Such programs should be launched even before the arrival of the first client, and they should become one of the components of an effective business plan. Small companies in this case it is easier, because they know their clients better "by sight". As the well-being of the population grows, so does the number of discerning consumers who, when buying coffee, pay more and more attention to its quality and level of service, as well as to appearance and the interior of coffee shops. To maintain the loyalty of such customers, it is no longer enough to have a lower price or just smile when communicating with them. In any case, customer loyalty starts with a cup of good espresso and a high level of service, discounts and any programs are secondary. You need a high-quality service, and only then: "Hello, take our discount card, next time we will serve you 30 rubles cheaper!" But most importantly, discounts cannot make customers truly loyal. After all, there will always be a competitor who will offer a lower price, and the buyer will one day choose another establishment.

For example, in business catering it is much more important not only to attract attention with discounts, but to retain the client by making him permanent. Here the discount influences less and less the choice of the person. The quality of service, the attentiveness of the staff and an individual approach to the client are becoming increasingly important. Recently, it has become more and more important not only to attract consumers, but also to make them come again and again, to form a "contingent" of the establishment. With the same choice, the consumer will prefer a place where he will be not just an ordinary customer, but a “guest of honor” and, in addition, will receive privileges, which is always pleasant. It is important to remember that the loyalty program is not a panacea, but an additional effective method increasing competitiveness. It is useless without quality management, therefore, before introducing such a program, assess how your coffee shop objectively satisfies the customer's need. If not, correct and control the quality. The loyalty program itself will give nothing - it is additional tool... Foreign studies have shown that loyalty programs lead to a decrease in customer turnover by 30% and an increase in turnover by 10%, and retention of only 5% of customers after some time leads to an increase in the profit received from them from 25 to 85%.

How many years have you been trying to retain a customer? Probably as long as there is trade. What merchants did not invent: they gave discounts to customers, sold goods on credit, made gifts ...

The first and most important signal a seller gives to a customer is price. The price has dropped - clients move to places where it is cheaper, and any attempt to retain a client very often does not work. But there are exceptions, we see them almost every day. The explanation is simple. We believe that the product we purchase, even at a higher price, is better than the product that we did not choose. At the same time, the concept of “better” can have its own content for everyone - this is the client's loyalty. The easiest way to create a sense of your special status in the customer is by personal relationship to him. Everyone will be pleased if they begin to contact him by name and patronymic, and even offer exactly those products that he loves. The main encouragement that the client wants to receive is attention, information, congratulations on the holidays, gifts and lotteries, private events, that is, everything that has enough imagination. The client likes to feel connected and taken care of.

Today, loyalty in itself becomes an important advantage in almost all situations. In conditions of growing competition, when the market offers many of the same type of goods or services, it is no longer possible to keep buyers with discounts alone. This is achieved by creating a loyalty system, that is, a system for providing customers with services focused on an individual approach, taking into account the interests of each program participant. A loyalty program is a powerful lever that allows you to manage the most important part of your business - your customers. If the goods and services chosen by them according to various criteria are subject to loyalty programs, then buyers willingly participate in them and often become regular customers.

I would characterize true customer loyalty as an element of self-identification through the chosen coffee shop, a personal attitude towards it, its perception as a person, “mentally”. The key here is not only insensitivity to the actions of competitors, but also the fact that the client recommends the coffee shop to others. But (and this is a very important "but") loyalty will never be built on emotions alone. It is necessary to first build all the processes, raise the service and quality to the point where the coffee shop's services fully satisfy the guests' needs, that is, there are rational prerequisites for loyalty. And only later, when loyalty stops growing as a result of these actions, you can deal with the emotional side of the issue. A simple example: your operator loyalty mobile communication does not increase from the fact that he sends you an SMS on your birthday. Is it really important if he does not provide communication services well enough, the signal is inconsistent, money disappears from the account, it is impossible to reach him by phone? Can such pseudo-attention correct this situation?

For any trade enterprises loyalty program is a way to thank customers for their interest and at the same time a good way to build a sustainable customer base... Like everything in business, the program must be effective, that is, with minimum costs give the maximum benefit. The determining factor for launching a particular program is the income level of your target audience. People with low incomes will not be able to accumulate bonuses - the average check is too small, purchases are not so frequent, so they are more interested in discounts. But in the case of representatives of the middle class and above, sometimes it is simply impossible to do without loyalty programs. Each client needs a special approach, and the size of the organization does not matter. That is why it is recommended to adopt the slogan: "Every client should be tried to be permanent." Customer loyalty should be built on more important and long-term components than one-time bonuses and discounts. This is a whole range of activities aimed at retaining regular customers, regularly encouraging and stimulating them. The more we know about the client, the more reasons there will be to pay attention to him. Most often, the client chooses a product based on any considerations of benefits. Customers are becoming more savvy and savvy about rewards and value. And one of the main problems associated with this is to convince customers that they are doing smart or economical when purchasing your product.

As you know, not all buyers are created equal. Good program Helps you retain the best, highest-value buyers increase the sense of value (in their own eyes) of those who buy less and reduce costs for casual customers.

Examples are quite successful implementation loyalty programs on russian market More. But this does not mean that a standard constructor has appeared that allows you to assemble a workable customer behavior management system for any company from several basic elements. At least, creativity, fresh ideas and flexible approach to problem solving have not been canceled yet. However, as well as the achievement of an elementary level of civilized business, without which one can not even dream of loyalty.

Of course, loyalty programs, like everything else in business, are not always successful, but the main problem is not that the program is unsuccessful, but that often no one really controls its work: they issued cards, handed out the rules, and that's it. And whether there is any sense in it, no one already knows, since there is no full control! Any program will fail if its implementation is not placed under strict management control. The program can be beautiful on paper, but in practice it will only disappoint consumers. As a result, instead of an increase in loyalty, you will receive a massive churn of customers.

Unfortunately, it is too early to talk about the presence of sincere love between buyers and sellers in our country. Suffice it to recall the epithets that employees, communicating with each other, reward clients in some organizations. It is difficult to combine loyalty programs, which are essentially aimed at forming friendly, trusting relationships with customers, with such an attitude.

But the situation is changing, and today many companies have begun to pay serious attention to the development and training of their employees precisely in the direction of increasing customer focus, considering this as one of the tools to increase their loyalty. Every year the cost of servicing regular customers decreases. In the end, starting at some point, regular customers begin to "build your business" themselves, making more purchases, buying more expensive and high-quality drinks and dishes, as well as advertising their favorite establishment everywhere. Currently, I have in my wallet about 30 discount cards from various businesses, shops, cafes, coffee shops and restaurants. Many of these cards I had to buy, some were presented as a gift in the course of large purchases or large orders. I cannot say that I value the purchased cards more and use them more often. Probably, the determining factors (at least for me) are the fact of the quality of the goods and the level of service, and only then the availability of a discount and attention from the company.

Through the development information technologiesand in particular the Internet, consumers today know much more than their predecessors. We can talk about increasing the transparency of markets for clients. Research shows that the modern consumer, when making a choice, wants to have a sense of its correctness, that is, to feel some value, benefit from purchasing a particular thing or from a particular seller. This is the individualization of the product, its adaptation to the requirements of a particular consumer. The consumer wants to have an individual product in the era of mass production.

You must love the client! Then we are not indifferent to who our client is, what, when and how he buys, why exactly in this way, how old he is, what newspapers he reads, what programs he watches on TV, how he lives when, finally, his birthday. With this information and a genuine interest in our customers, we can continually offer them something more than the competition. Then the buyer will accept discounts, bonuses, and gifts, since this will really be relationship marketing, and good relationships are expensive.

Emotions are especially important in coffee shops, where there is an addictive effect. Here, customers need to be encouraged as soon as they come, even if they have not shown themselves in any way - to delight and amaze from the very first contact. The relationship with the customer, the experience - this is the pedal you need to press to outrun the competition. For this it is useful to compare the situation on consumer markets today and a few years ago and think: what will happen tomorrow? What will our clients need, and what will they be indifferent to? This is why you need to constantly study your customers. The average consumer turns down the opportunity to grab another piece of plastic unless it clearly offers obvious benefits. In reality, an advanced buyer quickly loses interest in a tempting offer if it takes an incredible effort and a huge investment of time to get access to the promised benefits.

The most modern means of stimulating demand in recent years has become consumer involvement in long-term loyalty programs based on accumulation. These programs offer not only financial benefits, but also the so-called "sports interest" (emotional motivation), provide a long-term incentive to purchase, which allows to a certain extent to avoid price wars and save profits.

Today, plastic cards with an embossed number, barcode, magnetic stripe, contact or contactless chip are widely used. The choice of the type of card depends on the goal of the loyalty program, its scheme, scale, and the existing technological base. To understand this, you need to start with the differences between technologies.

Cards with an embossed number, a barcode and a magnetic stripe are, in fact, identifiers that differ only in the way of reading, the possibility of automation and the degree of protection. With a circulation of less than 500, it is wiser to use an embossed number. The price per unit in this case is about 1 euro, but in this variant there is little scope for automation.

The use of cards with a barcode, magnetic stripe or with a chip - the so-called smart cards - allows you to almost completely automate the loyalty program. In this case, the unit price increases several times, and you will need to install additional equipment - a card reader. Thus, the choice of the client carrier is seriously influenced by the goals of the loyalty program, the incentive scheme, the available technical base, security considerations and, of course, the cost of the system. Obviously, a small business taken separately cannot always afford to make such investments in a loyalty program, but it still has a need for loyal customers. Coalition systems help here, when one company provides its services for the implementation and support of the loyalty program to a number of enterprises with various specializations. Coalition programs are very popular abroad, because a consumer can use one card in many places, and not carry around a bunch of different plastic cards.

And now, as an example, consider the loyalty program implemented on the basis of plastic cards with embossing, implemented by two types of DC and VIP format cards with various programs of cumulative discounts for regular customers.

Using the card.When ordering or paying for an order, the client notifies the waiter or bartender about the availability of a discount card, gives his last name and submits the card for identification in the database. After paying for the order, the customer receives a printout of the invoice and cashier's check, where the current discount on the card is indicated. The cumulative discount is automatically enabled by the accounting program after the threshold amount of orders for the reporting period is exceeded.

Modern electronic technologies are already beginning to squeeze paper and plastic cards. One of the new products is mobile cards, which can serve as an addition to existing loyalty programs. Mobile users can get a mobile discount card, which is a barcode image on the phone screen. By presenting such a barcode at the checkout, the client can receive various discounts, bonuses, special offers... The barcode is read from the screen by a trade scanner in the same way as the barcode on the product packaging. A mobile discount card is delivered to the client via sms, that is, the client's contact phone number is determined in the system. A conventional plastic card has a number of disadvantages compared to a mobile card: it is uninformative, easily lost or forgotten, while a mobile card is stored in the phone's memory and can be easily restored. The telephone is less often forgotten, since a modern person needs it much more often than a discount card. In addition, the mobile card does not take up space in the wallet. Using this technology, you can remotely sell discount cards and coupons or charge bonuses by sending them to your phone.

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During the work were developed ready-made modulesthat can be installed and configured to work with protocol processing REST API.

For the RETAIL direction, we have developed a module for 1C Trade, which is compatible from version 8.2. and higher. This module can be used as a basis for integration by modifying it for individual 1C business processes of each partner.

For the HORECA direction, a module has been developed for the most popular software "R-keeper", which supports both 6th and 7th version. The main work proceeds through the standard FarCards application and additional libraries that provide interconnection with processing.


Also for the HORECA direction, the IIKO module is provided - an external plug-in, which is licensed directly by Iko.

Frontol integration module is an external script that is loaded into the software settings and provides interconnection with processing.

All modules have the ability to work with different card identifiers: number, barcode, magnetic stripe, virtual card, as well as the customer's phone number.

We also provide technical and user documentation for ready-made modules, their description, instructions for installing and working with cards at the checkout.

We do processing that unites all sales channels of your business, as well as consumers who receive information

Points using processing:
- Outlets (or cash desks)
- Online store
- Card activation agents (card distribution agents working through CardsPro - FREE)
- Franchises and affiliates (including various legal entities and brands).

API

The personal account provides the Partner with the functionality for working with cards:

  • View information about issued cards.
  • View detailed information about card transactions.
  • Viewing information about retail outlets.
  • Search for customer profiles.
  • Providing statistical information about cards and operations in the form of charts, graphs, reports, etc.
  • Uploading reports in various formats.
  • Carrying out activations, debits, purchases and other card transactions.
  • Sending requests to the processing support service.
  • Formation of applications for sending messages (SMS, email, Passbook).
  • Access to reference information (user manual, specifications, instructions, etc.).

A client service designed to obtain information about the card (s), transactions on them and perform other actions. Work with the client's personal account is carried out through an Internet browser.
To gain access to the personal account, the client may need a registration procedure (card activation), which consists in filling out a questionnaire. The collection of the client's personal data can take place at the checkout at the time of issuance (issue of the card), or the client can independently go through this procedure by filling out the questionnaire on the card activation page.

The list of required fields depends on the partner's settings.
After registration, an SMS will be sent to the client's phone number with a password from personal account client.
The client can follow the link and log in to his personal account. The authorization method depends on the individual settings of the processing partner.

  • card number and captcha
  • card number and password
  • phone number and password
  • phone number and captcha

If a partner has several authorization methods configured, then the client can choose which one he wants to use.
The LKK interface can consist of several tabs (depending on the LKK settings):

  • My cards - the block contains information about customer cards (card number, card name, design, status, balance, expiration date, card transactions).
  • Profile and Settings - contains personal information about the customer and allows you to manage notification settings. In LCC, the client has the ability to manage the settings for notifications and subscriptions for various topics / brands that he would like to receive.By default, notifications are enabled after client registration.
  • About the program - contains personal information about the customer and allows you to manage notification settings.

Reports:

Uploading of all standard reports is possible in manual mode in relation to a certain period, in csv and Excel formats. There is also a monthly automatic dispatch standard reports to the mail.
For a partner, the possibility of forming (ordering) personalized reports based on those available for processing is also available data. The preparation of these reports is free.

Standard reports:

  • activation;
  • movement of gift certificates from the moment of purchase to cancellation;
  • maps - information about maps;
  • transactions - information about card transactions is included in the report;
  • balances on blocked cards (for example, the card has expired, etc.);
  • debits - the number of debits on cards for the selected period of time in the context of dates, points and types of cards;
  • clients - information about clients, cards and consent to communications in the context of various channels;
  • movement of bonuses / discounts - detailed information about the movement (accrual, use, burning) of bonus / discount funds on the card account;

Deep analytics and machine learning

  • predicting customer churn;
  • purchase recommendations - based on the customer's purchase history, as well as based on the similarity of purchases;
  • A / B testing.

Safe data placement - CardsPro processing is located in Russia, and itself software developed entirely by its own developers, who are on the staff of the company (holding).

Bank card reliability - uses all experience with banks and bank cards and can process and store personal data.

Safe storage of data -dto process requests, it uses the capacity of the N1 data center in Russia - Dataline, allowing you to use the best security tools on the data center market.

Protected personal account -LC is protected by a certificate linked to our legal entity (traffic is encrypted), all users set their own passwords, which are not stored in clear text during processing.

Secure data exchange -fromthe connections between the cashier and the processing are protected by separate traffic encryption certificates.

Fraud protection -ncard numbers contain the moon code, incremental (unsafe) algorithms for generating card numbers are not used, some of the numbers are necessarily excluded to exclude the possibility of brute-force card numbers.

The collection of personal data, as well as their processing and storage is carried out in strict accordance with FZ-152.

We are ready to update your existing customer base, as well as receive and process data about new customers.

To update the current customer base, it is necessary to carry out a procedure that will allow segmenting customers into an active and passive base. The customer base for download can be provided in table format (csv, excel) and contain personal data of customers, old card numbers (for analytics or subsequent work on old numbers), various levels of savings, customer statuses. The data is normalized before loading on the CardsPro side with the agreement of algorithms.

When activated, it is possible to collect customer data for analytics and communications.

The client's questionnaire includes the following information:

  • Name (full name in case of obtaining the client's consent to the storage and processing of personal data)
  • Date of Birth
  • Client gender
  • Telephone number
  • Address email (email)
  • as well as individual fields, for example, about preferences, hobbies, having children, etc.

The card can be activated in one of the following ways:

  • at the checkout of the store, while the client must provide the identification code to the cashier;
  • on the site through the form of the client's personal account;
  • on the website when registering a client or placing an order;
  • using delayed activation: after entering personal data at the checkout, an SMS is sent to the client with a link containing a unique token to enter his data and complete registration in the loyalty program.
    • Bank card

    BI

    Dynamic reports that allow you to display data in the sections of interest.

    This functionality allows you to build pivot tables in the interface of your personal account.

Everyone views marketing as customer acquisition. Something like an advertisement. Marketing \u003d advertising. They attracted customers, they bought it.

Everyone is happy: the head of the company, the clients themselves. The only thing is that it has long been proven that selling to a regular customer is 5 times cheaper than to a new one. And this is the problem with most leaders.

They don't think about how to retain a customer, although there are simple and unobtrusive marketing tools for this. For example, a customer loyalty program.

Marketing and discounts

Although no, I'm wrong. Executives and marketers think like. But usually, the maximum they think of is discounts.

Those very banal discounts and, moreover, the greater the discount in their opinion, the higher the probability of retaining the client.

This is definitely true. Only now they forget what discounts mean in business and how much it affects their markup. And all this as a result is very far from a working customer retention system.

And how can you keep ...

As an example, let's imagine a classic situation in any business when a client asks you for a discount and at the same time subtly hints that if you do not give, then the consequences may be irreversible.

Bad option:

- Will you give me a discount?
- We have no discounts.
- Then I'll go buy from competitors!
- Okay, I'll give you my personal 5% discount, but just about it to anyone.

A good option :

- Will you give me a discount?
- Yes, for purchases over 10,000 rubles, you get a 5% discount.
- Okay, then I'll buy.

The best option :

- Will you give me a discount?
- Sure. Moreover, the more you buy from us, the more discount you get. When buying for 10,000 rubles you will get a 5% discount, and when buying for 20,000 rubles you get a 10% discount.

- Nuuuu, well, let's get this coat for 22,000, then it will cost me 19800.
- Yes that's right.

I think you have now learned the model of the customer loyalty program, which is used by more than half of small businesses in Russia. And now is the time to change your business and stop looking like 99% of your competitors.

If you don't have a customer loyalty program, it's time to break the system and start it immediately after reading the article, especially since you will learn the tricks and life hacks that work in modern realities in Russia.

And even more so, if you have it exactly as I described in the examples, urgently fix it!

And if you are lucky and yours is not so, I congratulate you, but I still strongly recommend reading the article to understand what to add / improve to your loyalty system.

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Three tasks - one road

So. What is a customer loyalty program? In short, this is a way to motivate your customers with three main tasks that most managers forget about when developing it:

  1. To retain customers (you will go to organization B to buy if you have the maximum discount in organization A ?!);
  2. To increase sales (will you buy another 2,000 rubles to get an 8% discount?);
  3. So that (Remember before everyone went to Letual or Il De Beaute with other people's cards to buy with the maximum discount?).

And in fact, all customer loyalty programs revolve around two simple actions (I would even say, arithmetic operations) - write off or accrue, that is, plus or minus, that is, a discount or accumulative program.

It is them that we will now consider and get to the thought “What is better - a discount or bonuses?”. If you don't want to read the article further, watch the video:

In general, there are more than 4 loyalty programs, but today we will study only these 4. And yet, get ready that in the course of reading the article you will have thoughts to change the old good / bad working for a new one, which you will learn in just 3 minutes.

Loyalty discount program

As I wrote earlier, this is the most common loyalty program, and not only in Russia, but in the world in general.

Expressed in either a one-time or cumulative discount. As a rule, this is a discount card that gives a certain percentage discount upon purchase. Why certain?

Because discount cards come in either a fixed or a cumulative discount.

The cumulative discount is due to the following function - when buying at certain price thresholds, the client receives an increase in percentage as a reward for loyalty to the company.

Some are sophisticated and come up with conditions that if a client does not appear with them, for example, once a month, then she drops one step lower and so on until he comes to his senses and comes again.

Pros :

  • Customers love discounts a lot. Especially in Russia. In the conditions of this time, it is very special.
  • Such a program is simple and straightforward, so it is easy to organize and control.

Minuses :

  • Nowadays, any person usually has at least 2-3 discount cards of companies in one sphere.

    And usually the discount amount is the same everywhere. Therefore, in competitive areas, one might say “loyalty” is more like a word than a really working tool;

  • As soon as the client stops growing in the process of winning the maximum discount, his interest in making purchases also begins to fade;
  • The main disadvantage of discounts is that they are given from net profit (example below).

Let's give an example about the loss of money from net profit due to discounts. Let's say you sell some product for 9,000 rubles. Your margin is - 30% Discount - 5% or 450 rubles. It seems to be a little, BUT!

You have the cost of goods / services, which you will not go anywhere, and accordingly you give a discount from your net profit.

Thus, you actually lose 450 rubles not from turnover, but from your net profit, which, for example, is 2,700. It turns out that at the exit, taking into account the discount, you earn 2,250.

The total amount of the discount (if calculated in terms of pure money) turns out not at all 5%, but as much as 17.5%. And this is, you see, essential. Of course, this will not be so noticeable if your mark-up is 100-200 percent, but what if the discount is higher?

Loyalty bonus program

In this program, the client no longer receives discounts. They magically turn into bonuses. But the principle is the same.

When making a purchase for a certain amount, you receive a certain percentage of bonuses from the transaction amount to your account / card, which you can spend when making the next purchase (even exchange it for a free product).

The bonuses themselves can be in any form: points, stickers, rubles. Yes, even the fictitious currency of the store (not the worst option, by the way).

Pros :

  • If you imply repeat purchases, then the system can work for a long time and successfully without unnecessary problems;
  • To accumulate a decent number of bonuses, the buyer must buy constantly or for large amounts, which is extremely beneficial for the business owner;
  • Bonuses may tend to burn out, which means it will be an additional incentive to come to you as soon as possible and spend them;
  • Not all customers come to spend bonuses, so one might say that you leave this money with your company and end up selling without a discount at all.

Minuses :

  • If the purchase is one-time or very expensive / rare, then such a loyalty program will not work. The client simply has no interest in participating in it, since he will not come to you again;
  • If you make tricky / complex rules for a loyalty program, buyers may get confused or not understand it at all, which will completely destroy the whole idea of \u200b\u200bits creation;
  • More difficult to control than discounts, so you might even need special software.

What's the second fastest way to increase profits at any company? Thinking about the first one? Do not think this is a rise in prices. The second is to switch from discounts to bonuses.

Remember our example about a product worth 9,000 rubles and a 5% discount? Let's apply it to bonuses. All the same.

You have credited the customer with 5% on his bonus card at the first purchase, which he can use at the next purchase. We count.

1st purchase - 9,000 rubles
2nd purchase (also) - 9,000 rubles
The bonus from the first purchase (lies on his card) - 5% or 450 rubles.

Thus, 2700 (first purchase) + 2700 (second purchase) - 450 (debited bonuses from the first purchase) \u003d 4,950 (your net profit minus the bonus discount). The total discount on your profit was 8.5% versus 17.5% in the first case.

Those who were especially attentive should have noticed that from the second purchase, the guest will still receive another 450 rubles to the account, and it turns out, as a result, we will give out the same 17.5 percent. And they will be right.

Only if we return to the advantages of this system, we must remember that half of the people will not come, half of the bonuses will burn out and these bonuses will stimulate the client to come again.

And also answering right away your question: “What will happen if we cancel discounts and introduce bonuses, will all the customers run away?”. Nothing will happen! Yes, some part will leave, but its departure is compensated by an increase in your profit.

Oh, calm, only calm

In general, it is not dangerous. We checked it many times. And by the way, the part that will go away is the most unreliable and small number of customers who are ready to go to the other end of the city if they find a product / service 10 rubles cheaper. No need to focus on such.

Although, of course, in order not to be guilty later that your company has ceased to be profitable, I will still make an amendment.

And I have a request for you. There is no need to ask clients: “What would you choose: discounts or bonuses?”. The client will always reply with a discount.

This is how our psychology works - “Good now, bad later”. Therefore, you take yourself ... willpower, cancel discounts (if any) and introduce bonuses.

Life hack. If you want to get already finished program loyalty, I advise ““. Very cool functionality and flexible settings. And with the promo code "INSCALE" - a 10% discount.

Multi-tiered loyalty programs

This is a fairly simple and at the same time complex system. The more a person spends money in your company, the more interesting a group of clients he gets and the more interesting bonuses he gets.

For example, it can be some additional free services ( free shipping, extended warranty, etc.).

That is, spending more money, the client raises himself in status. Often such loyalty programs are used in banking, insurance or airlines.

Pros :

  • Such a program is built on self-esteem, since the more a person spends, the more interesting the group he will get into, which has a positive effect on the client's desire to spend more;
  • Ideal for the segment of people VIP and Double-VIP (double-VIP).

Minuses :

  • He is both a minus and a plus. Such a system is ideal only for expensive goods and services;
  • You need very strong bonuses when you reach a certain level;
  • Quite difficult to implement and track. Again, you need special software.

Paid loyalty program

Or getting some kind of bonuses / privileges / buns for a subscription. That is, the client pays money (usually a fixed subscription fee) and as a result gets privileges.

It can be an enhanced service, additional services, access to some closed resources and the like.

Pros :

  • Very easy to organize;
  • Ideal for products that buy frequently;
  • The client buys access to such a loyalty program, but often does not use it (that is, "free money");
  • You can work out the cost of bonuses so that they are the most profitable for you in terms of money.

Minuses :

  • If the value (perception) of a paid subscription is lower than the price, then the entire program could fail.

Let's just say it's the coolest and strongest loyalty program. One that you get paid for, but let's be realistic.

For this to happen, you need to be a very popular company in your sales area.

How to choose a customer loyalty program?

This is very important point... Since a manager or a marketer always perceives their business in a special way, so to speak, “wearing pink glasses” (this is a fact that is also relevant about us), it is very difficult for them to understand what his client wants.

Yes, to realize everything as in the popular proverb - "And eat a fish, and not wash the pan after yourself." So what to do?

  1. It's trite, but you have to put yourself in the buyer's shoes. Let's say you have a wholesale organization.

    What do you think your favorite (for you) customer wants? Accumulate bonuses to exchange them for something free? Or does he want (and is used to) getting discounts here and now?

    Therefore, you take the side of buyers, analyze your range of goods / services and find the answer to these questions.

  2. Ask buyers who are already buying something from you, what they want (but remember the stop question: discounts or bonuses?). You can post a survey on the website, in social networks, or in your office.

    As a rule, the answers will be from the series “prices are lower, discounts are higher”. But sometimes you will come across adequate people who can tell interesting ideas, this is the essence of this action.

  3. Do a competitor analysis and identify one of two strategies:

    3.1 Go the other way. If a client gives a progressive discount, up to the maximum, then it may be better to refuse discounts altogether and switch to a bonus program, just with very interesting prizes.

    3.2 Simulate and improve it. Just remember that things can be ambiguous.

    After all, maybe a competitor miscalculated, introduced a discount loyalty program, now he earns nothing at all and grieves from it at night, but you haven't analyzed it and decided to copy it.

  4. And the last step, when you have thought about everything except yourself, ask the same question as in the first paragraph, only to yourself: “What do I want?” or "What is beneficial to me?"

    Sometimes it is better to make a system with discounts, and sometimes with bonuses. As I wrote above, there is always a factor in the market that can change everything.

    Therefore, consider under which scheme your company will grow in profit (or in your case it may make sense to grow in turnover to capture market share now).

And finally, a few life hacks that will make your customer loyalty program even more interesting:

  1. If you decide to switch to a discount loyalty program, then make it progressive.

    Buying for 10,000 rubles - a 5% discount, for 20,000 rubles - a 7% discount, for 50,000 rubles - a 10% discount).

    The more a customer buys, the more discount he gets. The only thing is that discounts shouldn't be just crazy on an ongoing basis (from 20%), it can play a cruel joke and scare away buyers.

  2. If you have a catering or a store, and you calculate bonuses manually, then rather switch to ready-made solutions that do not cost a lot of money.

    For example, such as Plazius (for catering) or Bazaronline (for retail stores). They already have everything you need. You just need to connect them, calculate the amount of bonuses based on your marginality, and put them into action.

Briefly about the main

Video at last, how stupid the picture as a whole can look when you complicate it too much and you stop understanding yourself 🙂

And a small summary of the article: if you just want to start a customer loyalty program because you need to quickly increase your profits, then ... No, it will not help you and you do not need it.

The customer loyalty program is just one of the marketing tools that can get your customer (sorry for the tautology) more and more, but in the long run.

And one more parting word - don't complicate it. I remember at one customer in a public catering service, we decided to introduce a bonus loyalty program.

We calculated it for about a month. Well, straight for a very long time. He called me all the time and offered me new mechanics. Confusing me, myself, and future guests of my establishment.

In the end, I spat and entered the following conditions: 20 percent of each check accrued for the next visit. As soon as the guests got used to the new system, we began to gradually complicate it.

bonus program - encouraging repeat purchases with special benefits.

If a discount stimulates a purchase now, then the bonus system is a purchase then.
Usually, a bonus is given in points, less often - with a product. Today we will talk about the first type.

Points - the internal currency of the business.

Let's imagine that business is a small state where you are the boss. Although you are obliged to follow the rules for all states, but what your people sells and creates is up to you.

So, points are the second currency of the state that works only on its territory.

there is the mainused by the whole world. It is accepted both in you and in other states. You pay her for goods, pay expenses, pay salaries and taxes. This is money.

Is there yourwhich is not accepted in other countries. Not everyone pays it, but only loyal customers and only in your country. They accumulate this currency in their accounts, with which they then pay for the goods. These are points.

The buyer receives points for events: the fact of the purchase, the amount of the purchase, the frequency of the purchase, etc. Can receive points for his birthday, for new Yearbecause he is a woman, a sailor or an opera singer. In your state, you decide for what and to whom to give currency.

Usually, businesses use discounts instead of bonuses because it is easier and more straightforward.

In vain. And that's why:

  • Bonuses increase the frequency of visits. The client will come again to spend the accrued points.
  • Bonuses keep the person. The client with a discount has already taken away his profit from the deal, he no longer needs you. With bonuses, he will have to pick it up next time.
  • Bonuses hold money. If you accrue 5 points (rubles) instead of a 5 percent discount, then these 5 rubles will remain in business. At a discount, you lose real money, and real money is the most liquid asset.
  • Bonuses are cheaper. Up to 30 percent of points remain in customer accounts and are not spent. This saves even more money in the business. The client will never refuse a simple discount, but often does not spend the bonuses, in fact, refusing it.

For work bonus program be sure to issue cards, tk. bonuses are credited to some account. But it is not necessary to run to the printing house: the cards can be virtual and work according to the client's data (name, phone number). May be in.

In theory, customers are divided into 3 levels of consumption: highest, middle and lowest.

According to research, bonus programs are interesting for the upper level and the wealthy part of the middle level. Highest level participates in bonus programs 4 times more often than the lowest one. Average - two.
But with discounts - the dependence is inverse. Discount “here and now” is most interesting for the lower class, less for the middle class.

Anyway, new program you need to calculate so that it is beneficial to everyone.

How to calculate the bonus program?

To work with bonus programs, you need to convert rubles into bonuses, i.e. create rules for the "exchange rate" for how much the buyer will receive.
There are 2 ways:

  • Internal points system
  • Percentage of purchase (cashback)

Internal points system

Imagine you have a store on the border of two countries. You buy a product in one country, and sell to residents of one and the other. This means that the purchase goes for one currency, and the goods are billed for two. For simplicity of the example, the currency of one country will be the ruble, and the other will be the point.

For example, you bought iPhones for 50 rubles. The margin is 50 percent. For buyers for rubles, the price will be 75 rubles.

How do you price points?

IN real life - convert. You would open RBC, find the point / ruble rate, and determine that for 1 ruble they give 2 points. Accordingly, the cost of the iPhone for buyers for points will be 150 points. All clear.

But the problem is that the course will have to be invented, since there is nowhere to watch it. You can give 1 point for 1 ruble, you can give 0.5 points, you can give 10 points ... you are not limited by anything.

For example, you decided that 1 ruble equals 10 points. To buy an iPhone with points, you need to accumulate 750 points on your account. And if 1 ruble equals 1 point, then the iPhone will cost 75 points.

A well-known example of such a bonus system is airline miles. Each program has its own logic of accrual, conversion, its own terms of exchange. Sometimes miles are not counted on the basis of 1 mile - 1 mile, but, for example, on the basis of 1 mile - 0.4 miles. Because each organizer has its own economy.

Percentage of purchase (cashback)

The principle is the same, but a little simpler. Now you know the course score. It is equal to 1 ruble - 1 point, and is returned as a percentage.

For each purchase, whether it is a specific product or any product from the price list, you decide how much to return a percentage of the amount, i.e. make a cashback to the client.

According to this logic, banks give cashback. But unlike bank cashback, which a customer can spend anywhere, your cashback can only be spent with you.

For example, you routinely give a 10% discount on milk, which costs 50 rubles. Instead of a discount that will leave 5 rubles in the customer's pocket for purchases anywhere, you can set a return with 10% points. In fact, cashback is 10% of the purchase. In the currency of your “state”.

You can put more on some products and less on others. It all depends on commodity stocks and business needs. The tool can stimulate sales of a specific product by increasing its cashback.

VirtualPOS works with this type of software. Configure in the "Bonus Programs" section.

How to evaluate the effectiveness of the bonus program?

There are tons of ways, scientific and not very. You can invent your own.

Here are some simple ones:

  1. Comparison of changes in revenue per customer. For example, the client used to spend 5000 per month, but now he spends 6000. First, you need to measure the base under test, then activate the bonus program on it, and then measure it again. If there is no base for measurement, the average is per client. If the business is new - according to the market average.
  2. Comparison of income from clients. For example, compare the spending of customers without a loyalty program with the spending of those who participate in it. Or compare income from members of different loyalty programs. For example, discount and bonus.
  3. Compare customer churn. See the number of customers who stopped buying and divide them into participating and not participating in the bonus program. If the goal is to retain customers, you will immediately see the effect.
  4. Comparison of revenue loss. For example, how much you lost on discounts and how much you actually lose on points. At the beginning of the text, we said that up to 30% of points are not spent, so bonuses (with the same level of sales) should be more profitable.
  5. Cohort analysis, Look Alike, NPS and other more complex metrics.

Outcome:

  • Bonus is the currency of your business. A financier would have hit me, but for perception, you can call it that.
  • The bonus saves money in business and retains the client, unlike a discount. If you are no longer counting on a client - do not use points, give a discount.
  • The bonus can cost as much as a ruble, or as two. The more convenient for your business is correct.
  • Bonuses are favored by the middle class. If you sell fashionable clothes, good cosmetics, watches, wine or original accessories, your audience will like the bonuses.
  • You can evaluate the effectiveness of a campaign both in comparison with others and in terms of the benefits that it brings on its own.
  • You can make a combo of discount and bonus programs. But count everything well.
  • Remember about common sense... No loyalty program can bring happiness if the product and service are weak.

  • The system must be profitable. Costs must be compensated for from turnover or high margins, which means that the purchase price and costs must be low. You don't need a bonus program for the bonus program.
  • Limit the time of the promotion. This will shorten the time of the last visit and speed up turnover.
  • Ask your accountant about bonus accounting. It's money, but not really. There are legal restrictions that should be checked with a professional.
  • Make the program clear and fair. Customers will stop responding to it if you cheat. And they will tell others that they are.
  • Don't even try to make a bonus program without an automation system.
  • Test the new program on your friends and the most loyal customers. Better to make sure it works without errors and everyone is happy.

20% of clients bring 80% of the profit. And these are regular customers. Increasing their number is one of the important tasks of any business, especially relevant in a crisis. To this end, organizations often use various loyalty programs, offering bonuses, discounts and other benefits.

Meet Olga, she has a small women's clothing store. Olga agrees with all of the above and also wants more regular customers. But she thinks that a loyalty program is very expensive, difficult, and only large companies can do it.

Loyalty program? What is this anyway? I just want to attract regular customers and am ready to give them some discounts. How can I organize all this?

Let's try to help her.

1. Format selection

First of all, you need to choose the format of our loyalty program. There are two types of such programs: discount and bonus. Discounts involve the provision of a discount expressed as a percentage. In bonus programs, customers receive virtual points (bonuses), which can be exchanged for a gift or for the same discount. Bonus programs are a little more difficult to implement, but they are more flexible, and it is easier to complete them ahead of schedule if they are not available.

Olga does not want to simply provide discounts, she is interested in the option of the bonus program, when she can set both the number of bonuses and their cost.

Also, all loyalty programs can be divided into cumulative and fixed. In cumulative discounts (bonuses) amount increases along with the amount of purchases. Fixed offer a constant discount. Accumulative ones are definitely preferable, but more difficult, since you have to solve the problem of identifying a client and accounting for the amount of his purchases.

2. Implementation of the loyalty program

The most commonly used issue is discount or bonus cards. Cards are magnetic and barcode. In addition to the cards themselves, you will need equipment to read them: a magnetic card scanner or barcode scanner. The scanner is connected to a computer with specialized software installed, for example 1C. The costs should be added to the payment for the services of a specialist in setting up the system.


tuthelens / Depositphotos.com

Advantages of plastic cards: automation of the process of customer identification and accrual of bonuses, storage of customer information in a convenient form. If the average check is small and / or the flow of customers is large, then this is the best option... But it is not suitable for Olga, as it entails significant expenses for her budget.

The next way to identify a client is by some unique code. For example, phone number or surname. In this case, the seller manually searches for a buyer in the database and gives him bonuses (or makes a discount). The database itself can be stored in various formats. In its simplest form, it is. The advantage is the minimum launch costs, and the main disadvantage is the seller's time. Such a system is convenient for a client who does not need to have a card with him. As a result, discounts and bonuses will be used more often.

You can do without personalization. For example, the supermarket chain "Magnit" periodically organizes promotions, during which customers are given stickers. You collect a certain number of stickers - you get a discount or a gift.

To save money on printing, you can print coupons instead of stickers and give them to customers. The buyer who accumulates and presents the required number of coupons receives a discount (gift).

Another version of such a system was practiced by Yves Rocher: regular customers were given cards with stamps indicating the number of purchases.

Bonuses are not tied to a specific customer: coupons and stickers can be transferred to anyone. But Olga believes that it is not scary for her. The apparent plus of a depersonalized loyalty program is that you don't need to maintain a customer base. It seems that it is because it is "Magnit" such a base unnecessarily, but Olga would like to keep in touch with her customers, and she needs their contacts.

3. Improving the effectiveness of the program

The goal of a loyalty program is not to thank you for a purchase, but to encourage you to make a new one. Therefore, program participants need to be periodically reminded about the store, bonuses and discounts. When registering a client in the program, you need to find out his phone number and email address and try to get consent to receive information materials. Modern services will help you keep your customers up to date with the latest receipts, promotions and other news.

Psychological research shows that people are more willing to participate in programs where discounts and bonuses are given at the very first purchase, when the card is issued.

It is also known that active, active consent increases the chances of participation. It is desirable that on the form of the questionnaire the client at least personally wrote “I agree to participate” and sign it. Moreover, according to the law, you must obtain permission to process personal data.

All good things come to an end. You can immediately limit the duration of the loyalty program, for example, a year. By introducing time limits on the effect of discounts and bonuses, you achieve two goals at once. First, it is a reduction in program costs. Secondly, lack of time can spur people to make additional purchases in order to have time to use the accumulated bonuses. Although some such restrictions, on the contrary, will repel.

After reading everything that we have written here, Olga decided to distribute coupons, since she does not want to install a computer for the seller yet. Now it remains for her to decide for what amount she will distribute these coupons and for what buyers will exchange them. But this is a purely individual decision.

If you have experience in implementing a loyalty program for, write about it in the comments. We promise Olga will read them.