Implementing a rewards program is only half the battle – the most important part is getting your customer to join. Below you’ll find 4 proven methods that compel your customer to join your rewards program.
1. The first-time check-in reward
How much would you pay to turn a new customer into a loyal customer?
If your average order value is $8, and the average loyal customer comes twice a month, then over the course of a year, a loyal customer is worth $192. Lets also assume a 25% margin, which brings us to a yearly profit of $48 from a loyal customer.
In contrast, a 1-time customer is worth only $8; a profit of only $2.
Pretty big difference.
Therefore, a business is willing to pay up to $48 to turn a new customer into a loyal customer.
So what does it take to make a first-time customer so happy that the he turns into a loyal customer?
Nowadays it’s more than just good food and good service; a business needs to offer an extraordinary experience. And nothing is more extraordinary for for a first-time customer than a freebie (ex: free food)!
Think about it. If it’s your first time at a restaurant, and the waitress lets you know that you can get a free appetizer today for joining the rewards program, would’t you do it?
I know that I would, and I know thousands of people that feel the same way because they join our client’s rewards program to get a freebie on their first time.
If you offer a customer a free slice of pizza that’s worth $5, but are able to turn this new customer into a super happy loyal customer, then you get a yearly profit of $43 ($48 – $5).
Not only that, but you also benefit from this super happy customer’s word-of-mouth to friends, family, and co-workers. By simply investing $5 into a new customer, you could easily make a 10x return over the course of a year.
The hostess, waitress or cashier
The hostess, waitress, or cashier has the most interaction with your customers. This is the perfect opportunity to tell your customers about your rewards program.
The hostess at a high-end restaurant
When a high-end restaurant is busy, the hostess directs the customer to a lounge where the customer can have a drink while waiting for his table. This is the perfect time to get a customer to join your rewards program.
The hostess can tell the customer all about your rewards program and offer them a free drink if they join today – a perfect incentive that also helps the hostess keep the customer happy.
The waitress at a restaurant
Waitresses let customers know about the special for the day. This is a great time to get a customer to join your rewards program.
After the waitress explains specials, she can let the customers know that she’d love to offer them a complimentary appetizer to start off their meal if they decide to join the rewards program.
A waitress needs to work hard for tips – and starting off the meal with a very positive experience is a great way for the customers to be super happy and the waitress to get a great tip.
Pay-at-the-counter locations want to get clients in and out of the checkout process as fast as possible; therefore, it can be difficult to get someone to sign up to a loyalty program on the spot.
The best way to do it is to have the cashier tell the customer about the rewards program while he’s ringing the customer up.
For example: The customer order a medium coffee. The cashier then punches in the order and says, “Great, and are you a part of our rewards program?”
Cashier: “If you join today, I can give you a complimentary bagel w/ cream cheese to go along with your coffee! It just takes 30 seconds to join.”
In this case, the cashier can instantly up-sell the customer and make sure that she is highly likely to keep coming back.
Post on social channels
If you use Facebook and Twitter, then your fans and followers are the perfect targets to use your rewards program.
For example, Bushido in Mountain View sent a message to all of their fans on Facebook with this image:
Sushi Mart in Vancouver sent out this tweet to all of their customers:
Constant and clear visibility
It takes 7 touch-points for a person to get the message.
In the case of a loyalty program, the 7 touch points can come in the following manners:
- In the bill fold
- At the counter
- From the hostess
- From the waitress
- From a friend
- On a poster
- On Facebook or Twitter
Usually after 7 touch points, the person will decide to take action; therefore, it’s very important that your rewards program has clear and constant visibility for all customers.
Quickly in Fremont is a great example of how a business can stay in constant and clear visibility in front of customers:
It’s not enough to have a rewards program – you must actively make an effort to get everyone of your customers to join it – if you do, then you’re going to reap the benefits financially