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If it’s Tuesday, I have brown hair, and was born in the 70’s…..

 

Sometimes it feels like this when using loyalty cards – it can be difficult to get points, rewards, or incentives, and this can prove frustrating to customers.

 

I myself have been frustrated at times with loyalty programs – no matter what I do, it seems that I can not accumulate points to earn anything. In other cases, it is very easy and I find myself happily surprised when I have incentives coming that I didn’t even realize were waiting for me.

 

I was in line recently at a retail location and overheard a conversation between the customer and cashier. She handed over her loyalty card, making the comment that this time she was sure to get points because she was purchasing items that were noted in this week’s flyer. To her dismay, the points did not accumulate. She asked the cashier about this, and in looking at the flyer, the cashier noted that the customer needed to purchase three of the item in order to receive points. The customer was clearly frustrated and vented to the cashier, explaining that while she knows it’s not the cashier’s fault, she’s frustrated because she shops at the store often, but can’t seem to buy anything that falls into the required purchases. She made the comment that it seems like this is one of those programs that you only get points if “it’s Tuesday, I have brown hair, and was born in the 70’s.”

 

While the comment made me giggle, I completely felt her frustration. I shop at this store quite often, and, like her, don’t have many points at all to show for it. In doing some research, I’ve come to the conclusion that this loyalty program was designed for the most rewards given for making specific, store brand purchases and pharmacy transactions. Thankfully, my family and I are healthy and do not require prescriptions, so that leaves me with the store brand items. However, their store brand is limited with regard to what items they offer, and it seems that I never need what they have.

 

Loyalty programs, when designed properly, can increase loyalty and encourage customers to shop more often. However, if they become frustrating to the customer, their value will decrease dramatically. How can you be sure that your program is effective?

 

1. Make sure the goal is properly defined, yet not too limiting. While you want to make sure the loyalty program is driving customers to specific purchases (if that’s your goal), make sure you also offer other ways to easily redeem points too so that customers feel like there’s value. If they see points accumulating and they’re getting close to an incentive, it may drive them to make the purchases you want them to in order to push them over the edge of redeeming points. Similarly, if it’s a case like the above where prescriptions are encouraged, customers using the program will know this in the back of their head, and next time they need a prescription filled, they will probably sway toward your business over the competition.

 

2. Ask your loyalty card users for their opinion. Once a program is rolled out, there may be bugs to work out. Maybe it’s too limiting, maybe it’s not working quite the way you envisioned it playing out. While customers may complain to friends and family, or possibly a cashier, you may never hear about it. After an initial rollout, let a bit of time pass and then reach out to loyalty card users to gauge their satisfaction and ask for suggestions for improvement. Not only will this give you great insight into how customers use your card, but it will make them feel like a part of the process, and they may be inclined to be more invested in your program. This, of course, can lead to more sales.

 

3. Look to the analytics for clues. The backend data compiled with loyalty programs can shed light into the success of your program. Are you seeing a drop off or increase in usage? Are you seeing high volumes of purchases but few accumulated points? Reviewing the analytics on a regular basis can help ensure the program is running smoothly.

 

4. Offer a surprise they can’t pass up. Once in a while, it may be helpful (and fun) to offer loyalty card users a bigger, spontaneous, “just because you’re a member” incentive that is not tied to a specific purchase or task. It will definitely generate buzz, make customers feel as though being a member of the program is beneficial, and keep them coming back for more.

 

Does your company offer a successful loyalty program? As a customer, what are your favorite loyalty programs out there? Please comment below and start a conversation!

 

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A Guide To Making the Most of a Customer Engagement Console

 

When you’re trying to accomplish a lot with very little like many businesses, it’s important to find the right tools and methods that will give you the most bang for your buck. When it comes to customer engagement, a tool that not only captures customer data but also markets to and engages these customers while they’re in your place of business can prove valuable.

 

Since the launch of our customer engagement console, we’ve found that companies see great benefit in this “all in one” engagement console. In one visually appealing tablet console, businesses can easily:

 

  • Capture customer feedback onsite, even from customers not making purchases
  • Market new products & services via video streaming
  • Assist customers when employees aren’t readily available; the “choose your own adventure” system can guide customers to choose products based on need
  • Encourage customers to participate in loyalty programs; reward those already enrolled in the program
  • Integrate social media to allow customers to provide instant feedback and engage with company social media outlets

 

How can companies make the most of the customer engagement console? Most companies, when first utilizing the program, want to “do it all” at first. Below are some tips to make the most of the program:

 

1. Set objectives: what is your primary use for the engagement console? Is it feedback, marketing, or serving as a virtual associate? Determine the main objective for the program and build other opportunities alongside it. Your objective should be the main focus, and tie in one or two additional features so as to become accustom to the program’s capabilities while not overwhelming the customer.

 

2. Start small: before rolling out consoles in every location, you may want to consider starting with high and low performing locations. This is a useful tactic to get used to the program, fleshing out your objectives, and determining how to make the most of the program. Because consoles can be customized to a region, geography, or even specific locations, you can target objectives on a store or regional level to get the most information.

 

One example that was recently shared was a grocery store utilizing the customer engagement console as a feedback tool. With a well placed console, customers were able to share with the store if they got the help they needed on the sales floor. If they didn’t, they could pinpoint what section of the store they needed help in and why they didn’t get it (looked for an employee but couldn’t find one, employees were present but engaged in other tasks and weren’t acknowledging customers, etc). This particular business could determine that improper staffing techniques were being used in certain areas of the store; departmental managers were talked to based on the results, and managers were supported in ensuring that their departments were well staffed despite strict budget concerns.

 

2. Placement is everything: depending on the size of the locations and type of business, it may be beneficial to utilize multiple consoles in any given location. For example, in a drug/grocery store, you may want one in the pharmacy department and another near the checkout lanes. Each can have its own objective and be fully customizable. This allows companies to capture the most customer data and engage with as many as possible while collecting a variety of data to use when making business decisions. Make sure you’re choosing high traffic areas to draw the most attention.

 

3. Get employee buy in: without it, the consoles may not do their job. Especially when the main focus is customer feedback, make sure employees know the purpose of the program, and make it a positive addition to your stores. Employees will be more willing to point it out and encourage customer use if they’re on board.

 

4. Everything in due time: when customers start using the customer engagement consoles, they want to “do it all” once they see what can be gained. Take it slow and let data build up in the system before making changes. We’ve seen some clients set up a feedback survey, for example, and then think “Hey, we want to know this too – let’s change up the survey” – as with any feedback program, making the survey too long or changing the questions too often will not give you the information you need. Take your time and realize it’s a long term program – you can do it all, but take a slow, methodical approach for the most success.

 

As technology becomes more integrated in customer relations, consoles such as this will become even more important for companies. If you’d like to learn more about the customer engagement consoles or see how they would look for your business, please feel free to contact us via email anytime.

 

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Using Groupon and Living Social: How It Can Help Your Business

 

Over the weekend I hosted a small dinner party at my home and the dinner conversation turned to Groupon and Living Social. We all exchanged some funny stories like driving one hour to get a 50% discount on a new frame for a picture we recently purchased to eating out at some very unusual places. The overall consensus  remained the same however- we all were able to suggest a restaurant that we had tried through Groupon or Living Social that we do return to because of the experience we had while using the coupon. We all agreed that when we find a place that delivers on the brand promise, we will shop or dine at the business again. Good service, good products or food, with a pleasant atmosphere will bring us back.

Before using Groupon I feel that the merchant must really be ready to staff accordingly and engage with the customer in a friendly and unique way as a first time guest using a coupon. Making the customer feel welcomed instead of the look of, “Oh no, not another Groupon customer” will do wonders to get me back! But am I alone? We did a little digging to find some recent research on the subject and found the study noted below:

 

Research Study: ForeSee Groupon Satisfaction Study, March 2012

Data collected from thousands of local merchants who have worked with Groupon shows that these businesses see significant value and benefits, including increases to their customer bases, consumer loyalty and brand awareness.

Key findings from the reports include:

Groupon earns high marks in merchant satisfaction

  • Groupon’s overall merchant satisfaction was a very strong 79 in March (source: ForeSee Groupon Satisfaction Study, March 2012)
  • The average satisfaction score for a B2B company in ForeSee’s benchmark is 64, which means that Groupon’s merchant satisfaction score is 15 points higher than an average of its B2B peers, and even exceeds the Fortune 500 benchmark by 10 points (source: ForeSee Satisfaction Benchmark, March 2012)

Groupon brings business through the door and helps local merchants attract long-term, loyal customers

  • Groupon brings customers in the door and 74% of merchants say that is the main reason they work with the company (source: ForeSee Groupon Satisfaction Study, March 2012)
  • 91% of daily deal customers have already or plan to conduct business with the merchant again since buying the deal (source: Foresee Daily Deal Commentary, February 2012)

“We see that satisfaction with Groupon is consistently above average, for both merchants and customers alike, and our extensive research shows us that companies who score favorably with these two groups are well-positioned for success,” said Larry Freed, President and CEO of ForeSee. “All of the studies we’ve done about Groupon lead me to believe this is a company that clearly drives new and repeat business.”

“Our internal data regularly demonstrates high merchant satisfaction and strong results for local businesses running Groupon features,” said Eric Rasmussen, VP Market Research at Groupon. “The ForeSee Daily Deal Commentary report confirms the important role Groupon plays to help local businesses spark growth and entice new customers.”

To further improve a merchant’s ability to evaluate their performance with Groupon, the company recently launched a series of products designed to improve ease of use, increase ROI transparency and deepen merchant-to-customer relationships. These include the free online scheduling tool Groupon Scheduler (http://www.groupon.com/scheduler) as well as the company’s loyalty program for businesses, Groupon Rewards (http://www.groupon.com/rewards) and the revamped Merchant Center, a dashboard providing real-time customer feedback and performance across traditional Feature Deals and Groupon Now! Deals. Merchants can also use Groupon’s free iPhone and Android applications to redeem vouchers and track deal performance.

Sources:

ForeSee B2B Benchmark, March 2012 (Independent Study)

ForeSee Daily Deal Commentary, February 2012 (Independent Study)

ForeSee Groupon Satisfaction Study, March 2012 (Commissioned by Groupon)

 

What about you? Have you found a great place because of a Groupon or Living Social coupon?
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