You don't need to be BIG to have a loyalty program!

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You don't need to be BIG to have a loyalty program!

Loyalty programs do not always need to look similar to those of large retailers, banks, hotels and airlines. They do not have to be what big companies think they should be. If you own a chain of pizzerias or have a
dog walking service, there are fundamental steps you can take as a business owner or business executive to
develop a customer loyalty platform to fit your needs.


You know your business better than anyone. Take the time to talk to your customers to see what perks or
rewards they find attractive. Find out what you can do to earn their repeat business. Find out what you
can do to increase their spending. Find out what you can do to earn their business more frequently. Once
you understand what motivates their behavior, you will realize how to manifest that knowledge into building
a program that works for you and your customers.


There are five basic steps to undertake when building a loyalty program. They include:

1. Identify Customers
2. Track Spending
3. Motivate Behavior
4. Reward Performance
5. Measure Results


Start with identifying your customers. If you don't have a means to identify your customers, you will not
be able to track what they’re buying.. You must be able to tie some type of unique identifier (loyalty card,
payment instrument, e-mail address, etc.) to the customer. Research what type of identifier will work best for
your business in a cost effective and efficient way.


Now you can track. Once the customer identifier is in place, you now have a means to track purchasing activity.
There are numerous systems available on the market to perform this function. Talk to your point-of-sale provider,
credit card processor, IT department or contact my office on the best options for your business to initiate a
tracking system for your program.


Motivate, motivate, motivate. This is the fun part. Once you are able to identify and track spending, you can
then start to market to your customers to motivate their purchasing behavior. You'll be surprised what a little
insight into the customer’s historical purchases can do to motivate their behavior.


Reward customer performance. Everyone likes to be rewarded, and therefore every business owner should apply the
most basic principles of nature into their business practice. If your dog sits, he will get a treat. If your
child listens in class, she will get a star. If your customers are motivated, they will take action. If the
reward for your dog was anything less than a treat, chances are you would not be able to train him to sit. The
same basic fundamentals apply with your loyalty program. If the reward is perceived substantial enough, your
customer will take action. Offer a reward of ten cents of per gallon if the customer reaches a certain spend
threshold – you’ll then see a motivated customer!


You can't manage what you can't measure. This statement is as true as it gets with managing a loyalty program.
All of the previous steps are irrelevant if you can’t measure the results. Loyalty programs evolve on the success
of promotions and campaigns. Once you can measure the results of each promotion, the program will become fun to manage.


A well thought out loyalty strategy will pay dividends to your business over time. Once you put the tools in place
to initiate each of the five steps, your loyalty program will have the basic foundation needed to operate a program
which you can benefit from and nurture over time. Each step will take time to build, but all are needed to truly
measure the success of your loyalty initiative.

Is “Social Justice”, the new rallying cry in the battle over interchange fees? What’s next price controls? - MyCstoreWorld

Is “Social Justice”, the new rallying cry in the battle over interchange fees? What’s next price controls? - MyCstoreWorld

Convenience Distribution Show Hits on Hot Topics

• Posted by Traci Carneal on March 15, 2010 at 12:33pm

spending the better part of a week at any trade show, my typical demeanor on that final day of travel is typically one of exhaustion and a mounting desire to get back home. As I write this post on the plane home following the AWMA (American Wholesale Marketers Association) Show in Las Vegas, the urge to get home is present, but rather than exhaustion I’m feeling intense energy about this year’s event – outstanding motivational speakers presented the hot topics of today and the show floor was buzzing with positive feedback and orders being taken. In fact, it was a challenge to interview some of the exhibitors for the daily show newsletter because they were constantly tied-up with buyers. But that’s just fine. That’s what a trade show is all about.

I’ve been to a lot of these meetings, and the educational sessions were the most compelling I’ve ever heard in this industry. It was clear the folks in attendance really liked – and needed – this type of discussion. Let’s face it…it’s hard for convenience distributors, in particular, not to get bogged down with day-to-day operations and simply not have time to step back and see the bigger picture. Out of stocks, short orders, single drops, employee issues…whatever the distractions, they can easily consume one’s day. Who has time to think about broader issues that affect the supply chain? How can trading partners work together to become more efficient, more profitable, and ultimately tap into the true desires of the end consumer? These are issues that need to be addressed, but often take a backseat to daily operations.

I left the AWMA Show with so many story ideas for Convenience Distribution, AWMA’s magazine, that I can’t wait to beef-up the editorial calendar. Here are a few of the topics that may pop-up in future issues of CD:

· Know the Consumer – No matter what part of the supply chain you occupy, you need to know the ultimate consumer. What are their buying preferences? What are they looking for in a shopping experience? How can the supply chain work together to provide the ultimate experience for the consumer? You may not have direct contact with the end consumer, but what you do does have an impact at the point of purchase.

· Social Media – Don’t think you need to be here? Think again. Supermarket guru and consumer shopping expert Phil Lempert told an audience of manufacturers and distributors (mostly distributors) that this is a growing market for branding your company or product image. It’s not just for the youngsters.

· Foodservice for C-Stores – How can the convenience channel provide the ultimate experience for the many different types of consumers – from “bubba” to the desirable female shopper – c-stores are trying to attract? What is the best strategy for you and your channel partners?

· Brand Marketing – Distributors don’t just sell snacks and tobacco. They are solution providers and they need to market themselves as such. It’s not just about the product – it’s about how your customers feel about you as a partner.

· InfoMetrics – This AWMA-guided program is underway and already has 50 distributor participants and 80,000 c-stores involved. It’s all about the data – collecting it from distributors and sharing it with manufacturers and retailers.

To learn more about AWMA and Convenience Distribution magazine, check outwww.awmanet.org. Please bear with us as we fine-tune the magazine’s online presence. It’s new to us and we are just getting started.

Okay, time for a bag of Nabisco 100-Cal Chips Ahoy! Thin Crisps (wow, this bag sure feels light) and a Diet Coke. Yes, that is the breakfast offering today on Southwest. Ah, the pleasures of flying.