Types of customer loyalty programs - YouTube

Welcome back to the Six Figure Mastermind.

Marianne here right with you.

Let's talk about what it takes to keep those customers coming back with loyalty program.

I've got a few ideas for you.

So stay tuned.

Customer loyalty is whats going to get your customers coming back for more.

there's a lot of different kinds of loyalty programs that you can implement in your business.

make sure before you do anything that you set aside a portion of your budget for customer

loyalty.

You can out them under marketing, advertising, whatever you want to do.but you should be

reserving part of your budget for customer loyalty perks and incentives.

And let me just give you a few tips on exactly what you can do to make that happen.

The first one is what we lovingly refer to in the industry is a frequent shopper punch

card, okay?

And you can order this on Vista print, you can order them on your local print shop, Fedex,

Kinkos whatever you want.And basically, what you're looking at with the customer loyalty

punch card is a series of numbers.

Maybe 1 to 10, or 1 through 5, for either the number of purchases that you need to make

with the minimum dollar amount or the number of products they buy.

So for example, If you;re a photographer, And you want to give a customer loyalty punch

card to your client, maybe they need to spend $500 with your over the course of their relationship.

And you can have that in $100 increments.

So on your customer loyalty punch card, you can have 5 $100 boxes and then their free

box maybe they can get a free canvas at the end of that, okay?

That's one way to do it.

If you have a loyalty program that's more product based, let's say you own a frappe

shop or a cappuccino stand or stall, something like that.

Like Starbucks, right?

Well, you have a product that's about the same price no matter how little they spend.

So for example you'd be giving them a free drink, after they buy 5 drinks or 10 drinks.

However much it is.

You need to know with your budget and your profit margin, how much you can do of that

with still being profitable.

You know take Subway for example.

Back when I was shopping at Subway when I was like 12 years old. they used to have this

old fashioned customer loyalty card.

And it would give you stickers everytime you bought a sandwich.

And each footlong with 2 stickers and each 6 inches 2 stickers and if you got 12 stickers

on your card, that would be a free sandwich from Subway.

So that's one version of the frequent shopper punch card.

Have one method for them to continually buy from you in order to earn a free product or

free add on or a free service.

Remember, be budget wise about this.

You can't go into debt just to keep your customer loyal because that's not a sustainable business

model.

Another way to keep your customers coming back with the loyalty program is what we lovingly

refer to the industry as a points program.

Now this is a little bit different from the product based, this is more along the service

based.

So think about if you;re a coach or a mentor or you run a service based business.

You're customers can earn points with there purchases.

And it works a lot like a frequent miles card or frequent travel card.

I just use an example.

Delta has a miles program or a points program, however you want to take a look at it.

And you earn what are called points with each purchase you make using their card.

Those points are not necessarily dollar per dollar but you do have their own system on

how their systems are valued and how they are redeemable.

And when you get enough points or miles in this case, you can exchange those points or

miles for another flight, okay?

So if you equipped that to your business, you need to have a points system.

It's almost like having your own currency in a way.

Every dollar that they spend is equivalent to a certain number of points for you.

So every point could be $5, every point could be $1.

You have to decide what's budget friendly for you.

And you also have to decide how many points they can redeem at once.

So I'll go back to Delta as an example.

So I have a Delta card.

In fact, I just booked a flight with my Delta card.

I had enough points to buy a roundtrip ticket to Los Angeles.

So I bought my roundtrip ticket to Los Angeles.

Used probably 1,300 miles.

You know and that roundtrip ticket also cost me about $11 in addition to my miles.

With Delta, you can't use your points completely to cover the cost but you can cover most of

the cost.

I mean seriously like a roundtrip flight On Delta for 11 bucks, that's a no brainer, right?

So with your business, you have to be smart about that and say, "okay, maybe they can

use their points for up to 50,60,70% of whatever purchase they want because you;re still going

to consider, I have transaction fees to pay, I have employees to pay and you have the rest

of overhead that you need to consider.

Maybe if you're giving away a product, that product has a baseline price.

For example, if you're giving away a canvas, or an upgrade to their current photography

package, you have a baseline price for how much that cost and you need to cover those

fees.

So it's okay to save this points you can use up to a certain percentage of your redemption

purchase, that's totally fine.

So points programs, the one thing to remember with that is that your point value , you can't

go changing it on your customer, you can't go say, "okay, suddenly your points were worth

$2 and now they're worth $1".

No way, no.

So do your work beforehand and understand the cost per redemption is going to be for

you.

So you can set up a good point system for your customer.

Another way to have that loyalty program really strongly in place is referral based.

So this is basically referral rewards program.

And the best way to manage this is with the customer relationship management software

or CRM.

This is going to help you track which customer refer to.

You need to be able to know how many lines down you want that referral to take place

typically just to keep things simple.

You wanted just first generation referral.

So if I refer a customer , I'm going to get a payback.

If that customer refers a customer, they get a payback, I'm just out of it, okay?

So just keep that one generation deep to keep it super simple for yourself.

The referral program can either give them a discount on their next purchase or they

can get a bonus on their next purchase.

Again, same as the points program, you want to keep your referral program unchanged.

One of the best ways to lose customers?

Is to change things on them without notifying them, okay?

So do the math beforehand.

Make sure your budget will cover the cost of the referral program even if it's through

discounts, or bonus material,whatever you're giving them.

Another way of getting your customer customer coming back for more with the loyalty program

is what I called daily specials.

this is a super fun way to keep your customers coming back for more because they had this

little piece of excitement to look forward to everyday.

So you can use this with a text management.

You can just have a stand in your store that says this is what the daily special is.

One of the favorite things I saw was actually at one of those yogurt shops that have yogurt

you know, you can just dispense yourself and fill up your cup.

I love going there because everyday of the week, I knew I was going to get some opportunity

to save some money.

So Mondays maybe student discount day.

Tuesday maybe it was a percentage off.

Wednesdays maybe it was your kids under 12 get a free whatever you call it.

Okay, Thursdays maybe it was 55 and over gets a discount.

Maybe Fridays was coming with your spouse and you get as many points off as long as

you've been married or something like that.

There's really fun, creative ways to create those daily specials and you can let people

know what they are through a text and automated texting service that you send out through

Easy Text along those lines, o you can just have a sign in your store.

You know people love to subscribe to text because they could get those specials and

personally I loved it have the text specials come to my phone because remember looking

for a date night or something fun to do and I get a text from my phone, I'm more likely

to go to that business because they are in constant in contact with me.

Another simple loyalty program is the coupon.

It's the classic, everyone has used it.

And it is proven to work.

You take Cosco for example.

You know this big box stores.

Cosco sends out a monthly coupon book that keeps their customers coming back.

And I think they do in such a way where they're racking how often people buy things like laundry

detergent for example.

They know that people buy a laundry detergent in every 8 weeks.

So in every other monthly flyer, they're going to put a discount on a product and services

that you buy most.

So putting those coupons out there, it develops expectations that the customer has that they

always going to get a great deal when they see you.

Always having a coupon to use, that's the great way to keep your customers coming back

to you.

now remember, this is advertising money well spent if you do it well.

It is worth the investment to grow your business.

In two ways, one you want customer's coming back to you.

That's going to increase your business and two, you want customers sharing your business

with other people.

So that's why we have this loyalty programs and referral programs in place to grow your

six figure business.

Hey, thanks for watching.

I hope you like today's video.

I want you to leave in the comments what your plan is to boost your customer loyalty and

you maybe interested in what it looks like to work a little more closer with me in building

your six figure business.

If that's you, hit me up in the link below and I look forward to see more of you.