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brain357
07-06-2017, 10:55 PM
I'm curious if anyone has experience with loyalty programs. I'm trying to get my business to the next level and this seems like it would be a good idea. But it's only good if it really gets me more business, otherwise it's just going to cut into margins. The types of programs I am looking at are like Sweet Tooth or S Loyalty.

WarrenD
07-07-2017, 03:52 AM
What kind of business are you into? Loyalty programs usually only work out if you're in B2C and dealing with high value goods.

Harold Mansfield
07-07-2017, 10:23 AM
Many times the problem isn't the idea, it's the execution. I think loyalty programs work well if they are created and executed well. I live in a casino/gambling town that lives by the loyalty program for everything from food to movie theaters to slot play to sports books to hair cuts.

I don't even gamble but I have probably 5 or 6 loyalty players cards. That's just how it is out here. Everyone has a loyalty program and it's hard to sit down for a beer, even at little neighborhood bar without the bartender asking if you have one of their players/loyalty cards.

I've also worked places that just kind of threw it up there, didn't promote it, didn't follow through and it flopped and cost more than it brought in.

brain357
07-07-2017, 11:15 PM
What kind of business are you into? Loyalty programs usually only work out if you're in B2C and dealing with high value goods.

Retail business. I sell collectibles. The value has a pretty big range from $3 to $1200. The loyalty app I'm mostly drawn to right now will give a credit based on how much a customer has spent on an order. So say $300 will get you a $5 credit. Then it will email the customer periodically reminding them they have a credit. My main concern is that it doesn't increase sales.

WarrenD
07-12-2017, 07:24 AM
Retail business. I sell collectibles. The value has a pretty big range from $3 to $1200. The loyalty app I'm mostly drawn to right now will give a credit based on how much a customer has spent on an order. So say $300 will get you a $5 credit. Then it will email the customer periodically reminding them they have a credit. My main concern is that it doesn't increase sales.

Does it cost a lot to participate in this program? The only way for you to actually find out whether it works on not would be to participate on a trial basis. Give it say 6 months to a year to see if it actually increases sales. If not, you can quietly phase it out. You could also ask the people who run the program to refer you to one of their existing clients. You could ask these clients about whether & how they benefitted from the program.

KellyMillerss
05-02-2018, 07:12 AM
What sort of business would you say you are into? Faithfulness programs generally just work out in case you're in B2C and managing high esteem products.