Drive More Traffic Into Your Store with Rewards and Communications
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This document outlines a presentation on driving more traffic into stores with rewards and communications programs. It discusses trends in loyalty programs, case studies of c-store loyalty programs that increased fuel purchases by 10% and in-store purchases by 15-16%. The presentation covers how to start a program, promote it through email and text using a web-based solution, and keys to success like giving customers what they want and keeping the program fresh.
Drive More Traffic Into Your Store with Rewards and Communications
- 1. “A Case Study - Drive More Traffic Into Your Store with Rewards and Communications” Brent Harms – Founder & CEO
- 2. Why are you Here? • Thinking about a rewards program and want to see potential results? • Have a rewards program and want to see how it compares? • Want to learn what options are available? • Looking for new ideas to drive more revenue? Perfect – you are at the right session!
- 3. Plan for this Session • Brief overview • Reward Programs – Trends and Results • Case Studies • Promotions and Communications – Identify your Customers – Promote to your Customers – email and text • How to Start a Program and Keys to success • Time for Comments and Questions
- 4. Tecmark Overview • Over 10 years supporting loyalty programs • Focus on retail, restaurant, and hospitality • Loyalty platform, web tools, and POS tracking • Complete email and text support (SIMPLI®) • Clients range from 1-over 2,000 locations • Recently entered C-store space • Integrated with Gilbarco, adding others
- 5. Programs Come in Many Flavors
- 6. Common C-Store Programs Grocery Pump Discount In-store Pump Discount Pump Discount Clubs– buy 10 get one free Points based on purchase
- 7. C-Store Industry Reports • Economics of Loyalty (NACS report 2010) – 5%↓ defection, 3%↑ ticket, 5%↑ frequency, and 0.5%↑margin (after program costs) • Case Studies from NACS Show Presentations: – FAS Mart (200 locations) – Average member spend up $1.30 in store and 2 more gallons per month – Express Convenience Centers (28 locations) – loyalty customers increased spending by 9%
- 8. • C-Store loyalty results lower but consistent with other industries (including programs we manage in retail and restaurant) • Will improve with better programs/delivery • Key results from other industries: – Increase in visits 10 – 22% – Increase in amount spent 15 – 25% – Decrease in attrition 10 – 15% – ROI Over 500% Loyalty Program Results
- 9. Increase in fuel purchases 10% Decrease in drive-offs 80%+ Increase in in-store purchases 15%+ Specific C-Store Targets
- 10. • Point program where members receive 20 points per dollar in-store and 10 points per gallon purchased • Base award of $5 for every 5,000 points (tiered up) • Implemented a merchandise discount program for members providing specific discounts on specific days just for members (may get partners to pay) • Used driver’s license to enroll new members • Could not capture email at POS, so provided bonus points for members to go online to provide email C-Store Case #1 – 34 Locations
- 11. • Over 30,000 members • Number of gallons purchased went up 10% • 98% of new members used the driver’s license to enroll improving the accuracy of the data and the speed of enrollment • In-store merchandise purchases increased by 16% • Only 11% of members went online to give the email address so additional promotional activities were implemented to increase email database Results after 6 months
- 12. • Members receive $0.03 off per gallon of gas • 2 additional benefits for members who provide an email or text number: – Coffee club – buy 10 and get one free – Merchandise specials just for “registered” members which are discounted or free items that change from week to week • Use driver’s license to enroll new members • Loyalty members do not have to pre-pay if paying cash for fuel C-Store Case #2 – 18 Locations
- 13. • 15,000 members • 100% of new members used the driver’s license to enroll improving the accuracy of the data and the speed of enrollment • Drive-offs decreased by over 80% • Over 33% of members went online to provide email address or mobile number • Customers coming into the store increased from 70% to 75% Results after 7 months
- 14. Other Program Examples • C-Store/Grocery partners like Holiday and Cub with card for discounts at pump based on grocery spend • Super America, point program for gas and in-store purchases, many redemption options, plus clubs • Paper coupons for discounts on gas paid in store like Kwik Trip/Holiday (other coupon offers as well) • POS systems have modules to automate discount and club programs using integrated partners for delivery of programs (including Tecmark)
- 15. Enrollment Made Easy Use a terminal to swipe or scan driver’s license to capture accurate data, then add email/mobile number online Encourage and incent members to join through your website Have paper applications that you can enter online when business is slow
- 16. You have members……now what? Get them in the door!!!
- 17. Create Promotions! Offer merchandise discounts for members - $1 off your favorite Pepsi product! Birthday specials – free coffee on your big day! Double points for grand openings, or just on slow days
- 18. Promotions are set – How do Members know? • Time for EMAIL and TEXT Marketing – Communicate to your members the way they want either email or text – Using a web-based solution gives you the tools and flexibility to design your email and your text message – Track how many members open your emails and watch them come in for the offers – Get reporting about number of redeemed offers
- 19. Results that Drive Traffic • So you send out a bunch of emails – who really opens them? – Industry average – 25 – 30% opened – Promotion redemption rates vary wildly based on offer – usually between 20 – 40% – You send 1,000 emails – 300 will be opened and you now have 60 – 120 customers coming in the door the day of your promotion!
- 20. Text Results • Text marketing is extremely effective in the C- Store Market, especially with 18 – 30 year olds – 95% have phones that receive texts – 98% read every text they receive and usually within 15 minutes of receiving them – Redemption rates range from 20% - 70% - compare that to print or direct mail advertising with a 1.5% redemption rate
- 21. Next Steps • Identify your goals and objectives • Determine customer needs • Understand your competition • Define your program • Use experts • Find the right partners • Execute, execute, execute!!!
- 22. Keys to Success • Give your customers what they want • ROI, your investment should deliver results • Make it fun and easy for your customers • Keep it simple for staff • Training is critical • Keep the program “fresh” • Connect with your customers
- 23. Time for Comments and Questions Brent Harms, Founder & CEO Erika Stevens, Interactive Marketing Manager 651-452-9551 www.loyaltymarketing.com