oyalty Programs Are Essential, but Most Only Reach a Small Percentage of Your Customers. Does boosting a convenience store chain’s lifetime profit by 85% seem like a good idea? That is a realistic goal if a chain can get only 7% more customers to become members of their loyalty program. Even though getting customers to engage with the loyalty program can be challenging, it is a worthwhile goal because these consumers spend an average of 29% more per visit. Even if a chain only achieves a 3% jump, its operating expenses can go down by 10%. Yet, getting customers to engage with a loyalty program can be problematic. Statistics show that the average customer is a member of 14.8 loyalty programs, but they only actively engage with less than 50% of them.
Most chains rely on a mobile app to engage with their loyalty program customers. Yet, a survey conducted by Deloitte found that 95% of consumers use a loyalty app for less than 30 days, and almost 98% are inactive after a year. Further compounding the issue, about 65% of users of loyalty programs never enter the store. Therefore, engaging with these customers can be very challenging, and most loyalty programs end up rewarding customers with discounts for behaviors they currently do.
One of the big problems many C-stores face is that most of the promotions they offer are often based on a generic, “one-size-fits-all” design and not aligned with a customer’s personal preferences.
The issue with many loyalty programs is that they reward customers for doing what they already do. For example, you may be able to count on Customer A to come in every Friday night to fill p their car because it is their payday. While he may appreciate a reward, he will continue coming in weekly, whether you provide one or not. Therefore, you lose money by giving him a discount.
The reality of many loyalty programs is instead of bringing in new customers or bringing in customers more often, convenience stores lose money by giving discounts to customers without them coming in more frequently or buying more. Over 65% of customers at the gas pump never enter the store, so be sure offers entice them to go inside.
Payment Intelligence is a better loyalty program because customers cannot opt out. There are several additional advantages to using Payment Intelligence. The program captures all customers, including those who opt out of loyalty programs, using payment details to build detailed customer profiles. This allows companies to offer specific offerings to customers in real-time, unlike many loyalty programs that try to entice customers with offers that do not interest them or get sent to customers as they pull out of the convenience store driveway. Pleasing customers is vital, and over 70% of customers say their favorite reward is discounts on gasoline. The program collects detailed information so convenience store executives can see how well each deal works.
The program engages with customers in many ways, including on receipts, POS machines, pump displays and cashier displays. The system can also send deals to the customer’s phones if they are already part of the chain’s loyalty program. Each offering is specific to the customer and based on their past purchase history.
Furthermore, the program has a detailed dashboard allowing executives to see how deals perform in real-time at different locations. As executives already know, not every deal is suitable for every site or every customer. The program relies on A1 technology to segment lists so that it is easy to offer deals geared explicitly at each shopper.
Many convenience store companies will be content to stick with loyalty programs rewarding customers for behaviors they are already doing. Still, those ready to grow their business while pleasing customers should contact All About Goods. They are experts in this field who can customize a program for any company. Yes, it is possible to boost customer lifetime profits by 85%. Find out how by contacting them today.