Promote Frequency / Preferred Memberships
·         Sell a preferred member card for $5.  Activate a card with 5 points at purchase and then load points to card each time a purchase is made to accumulate to a higher redemption level.
·          Set redemption level at:
o        One point = one $ spent
o        Balance of 50 points = Free lunch
o        Balance of 100 points = Free dinner
 
Rewards will guarantee clients to return to you and not your competitor!

·         Boost low sales days /hours by offering double points (double point Tuesdays / double points after 10pm)
·         Raise awareness of daily specials by offering loyalty program to neighboring businesses.  
Market your quality products and services with a quality gift card program!  What’s the Perfect gift for any occasion? – Gift Cards!  Advertise your gift cards in local papers and at community events.  During slow seasons, promote $50 gift cards for only $45.  You receive the funds upfront, and your customers feel they received a benefit for prepaying for the card.
 
One of two scenarios will result:

1 – Customers will not redeem the full value of their cards, so you retain
       the breakage.

2 – Customers will redeem the entire value of their card, while spending
       more at each visit and then buy another card for future use.
 
Eliminate the manual accounting hassle of paper gift certificates by starting an electronic program.   Access online reports for transaction details and outstanding card balances at the click of a mouse!
 
It is highly suggested that when a customer wishes to pay with a gift card, the server requests for the tip to be determined before actually performing the transaction to ensure there are sufficient funds to cover the meal and tip.  Another suggestion is to implement a policy whereby gratuity must be paid for with a form of payment other than a gift card. 
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You want more customers in your store, right?  Try this: Have about 500 Cards Printed.   Add a value to them such as $10.00.  Mail them to the neighborhood.  Have a nice letter printed introducing yourself and your business. 

When I was in the satellite television business in the 1990's we calculated the cost of acquiring a new customer at about $250.00.  How much is a new customer worth to you?  In my business we sold them products and services for years so this was a good deal.

If you don’t know how to do mass mailings call me for some tips.

Cost on this program could run like this.

Cards are .46 each to $1.00 each.
Transaction fees are .25 cents each at the highest
Statement Fee on Gift Cards is $8.95 a month.
Stamp, envelope and labor...guessing $1.00
Cost of goods on a $10.00 gift card...maybe $5.00 +/- depending on your industry.

Looks pretty cheap to me to acquire a new customer.  And...don’t forget, big companies have proved this works.  Staples mails me a $10.00 gift card regularly, so does Office Max.   They have already spent the money to research the program...trust them and run with it!

Call or E-mail and we will help you design a program for your business.
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This is live example of a local casual dining restaurant using our Loyalty Program.  As of 4-16-06 this merchant has been using this program for 5 months and attributes much higher sales to this program.

When a Customer Spends	Award is
$4.00 to $8.00 $8 to $14 $14 to $20  $20-$29.00  over $30.00 (max)	1 Point 2 Points 3 Points 4 Points 5 Points

Customer must accumulate 25 points.  Merchant Redeems Points and Converts to $15.00 Cash Value on same Card.

Customer must spend the $15.00 before adding more points.

This merchant is real and is sure this makes is restaurant  lots of extra money.  If you would like to talk to this merchant contact SEMS and we will provide contact info. 

So what does it cost?

Customer spent at least $100.00 to earn 25 points (at $4.00)
1 Card at .46 cents (highest card is $1.00)
25 transaction fees at .25 cents (max) equals $6.25
$100.00 X Cost of Goods at 40% is $40.00
There is also a $8.95 statement fee per month, lets deduct that too. 
The GP on this deal is $44.34 not including fixed expenses and this is lowball at $4.00 transaction.

Contact us for more information.  We will customize this program for you.
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This is live example of a local Scrapbooking Store Loyalty Program.  As of this writing, this merchant has been using this program for over a year and attributes much higher sales to this program.  Sandy (the owner) gives a card to nearly everyone that walks in, unless they are from out of town and say they dont want it. 

When a Customer Spends $1.00 Award is 1 Point

When a customer has 100 points accumulated Sandy deletes the points and adds Cash Value at a factor of 10%. 100 points equals $10.00

At this time there is no maximum and one customer is building past 800 points at this time.  Is this creating Loyalty of what?  The only real rule on redemption is that customers cant use the Cash Value for classes.


So what does it cost?

Customer spent at least $100.00 to earn $10.00 cash value

1 Card at .46 cents (highest card is $1.00)

Transaction fees at .25 cents (max) are hard to track here becuse of the variable tickets.  She has an average Credit Card Transaction of $41.00.  If we hedge on the expensive side and make the average $20.00 to get a point you can see she would have had 5 points at .25 or 1.25 in transaction fees.

$100.00 X Cost of Goods at 40% is $40.00

There is also a $8.95 statement fee per month, lets deduct that too. (I am trying to figure high...the statement fee is a once monthly fee.)
 
The GP on this deal is over $50.00  not including fixed expenses and this is estimating high cost to keep it safe.

How can loyalty work in your business?  What can you “give away” to make higher sales?

Contact us for more information.  We will customize this program for you.
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Let us help you determine what program is best for your business.
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