The question that every restaurant owner has on their mind is simple: how can I increase the profitability of my restaurants. While there are some very blatant way to accomplish this such as cutting back on the quality of the food and paying your workers less, these are not ‘ideal’ solutions. Rather, these would be considered cutting corners.

There are many ways for a restaurant to increase their profitability as well as the foot traffic that they get and would like to share 5 tips that we feel every restaurant owners should consider in regards to profitability:

1. Social Media We’ve mentioned it before, but we’ll mention it again. Social Media can be daunting and scary, but at the same time it can be a powerful marketing tool for a business. By using social media as communication tool , you can build relationships that keep your business top of mind with potential customers. By using it as a brand monitoring tool, you can listen to what people are saying, both good and bad. When used effectively as a whole, social media has the potential to help a restaurant increase it’s brand awareness and most importantly, it’s profits.

2. Email Marketing We mentioned how social media can be a great tool for staying in touch with customers, but another way that can be an effective strategy is email marketing campaigns. By collecting and building out email databases of customers that have dined in your restaurant, you will be able to market to them special dining opportunities, new menu items and even a special dessert for their birthday.

Here is an example of how Fleming’s Steakhouse sends out creative email campaigns during seasonal holiday and events:

3. Menu Pricing Rather than making ‘gut feeling’ calls on how to price your menu items, consider using the following tips on how to set menu prices that are accurate and most importantly competitive. Remember that setting your prices to be reasonable, doesn’t mean that you are sacrificing profitability.

4. Local Searches Aside from word of mouth referrals and passerby’s, another way that customers find what restaurant to eat at is through local searches online. Restaurant owners should take the time to look up what information is available on their business when searching for key terms related to it. Often, potential customers will be able to look up menu prices and items, locations, and reviews on a business. Make sure that what is online accurately reflects your business. (It would be embarrassing if the address for your restaurant was listed incorrectly.)

Google is a great place to start your search about your restaurant:

5. Focus on creating repeat customers Repeat customers are the lifeline of many restaurants. Not only do they dine at a restaurant on a regular basis, but they often tell their friends which can lead to more revenue. Because of their importance, restaurant owners should consider the value in creating a loyalty program for its customers. Specifically, by creating a loyalty program, a business will not only be able to reward their most loyal customers, but also learn more information about them such as their frequency and what they buy. *Note that data capture of this nature is only available with certain loyalty programs.

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What are some things that you have done to increase the profitability of your restaurant? We would love to hear them!

It was considered a fad when it started, it turned into a niche network and it’s now become one of the most important marketing tools for marketers, brands and businesses alike. Twitter, the micro-blogging social network which started in 2006, has grown into one of the most effective tools in penetrating new markets and spreading news.

For businesses, Twitter can play an important role in local marketing efforts because of then unique opportunities that it provides. Twitter provides an array of tools that can be used to find potential customers, new trends as well as networking opportunities with other businesses that might help form strategic partnerships.

Advance Search

One feature in particular that every business should utilize is the robust social monitoring tools available today. Through Twitter’s advance search, a business can search for keywords or phrases with specific target searches that include by user, mentions as well as place/location.

If you are just starting out with Twitter keyword monitoring, the first step it so identify a specific area to target. Remember, just how with Google searches, the more specific you are in your searches, the better the results. Example: “Dog” versus “Gold Retriever.”

At first glance, Twitter may look like just a bunch of noise, but if you look closely and take the time, you can turn that noise into relevance.

[For a complete list of how to use Twitter's Advance Search, read this great writeup published by Twitter.]

Let people know you are on Twitter

When using Twitter as part of your marketing strategy, letting your customers know that you are using Twitter as a communication device (as well as any other platforms), is a must. Aside from letting customers know directly at your business locations through signage, if your business has a website, you can have a link on your website that allow customers to know how they may reach you on Twitter.

If your business has a website, we suggest using Twitter’s Widget Creator which allows you to customize a widget for your website or even for your Facebook page.

Find the influencers on Twitter

Another great way that Twitter can play into a businesses marketing strategy is in identifying key influencers. Using tools like Klout, you can find out who are the most active, most followed and most influential users in any given area and/or expertise. Here is a snapshot of Ben & Jerry’s Food Truck:

As you can see, if I were a business that is looking to partner with someone who is influential about Ice Cream in the Seattle area, they might be the perfect candidate. As Twitter is like a megaphone, finding the user with the biggest ‘voice’ is the perfect way to make sure that your message is getting heard and by the right audience.

Once you have identified the influencers that attract the audience that you are looking to build relationships with, reach out to them and to see what kind of synergy there might be. Some creative ways to build partnerships include offering special access (ie: early access to products), invitations to dine at your restaurant (great for reviews) and creating titles/groups for your biggest supporters (ie: Mike’s Super Sub Twitter Team.)

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Is your business using Twitter? If so, what are some strategies and best practices that you use to drive brand awareness and conversions? Let us know in the comments below.

For eCommerce sites, knowing why a customer abandons their shopping cart is at the top of their list. In what is typically the last step toward a conversion, the average shopping card abandon rate is approximately 65%; a staggering number in any business.

While the reasons for a a customer abandoning their cart after adding products to it ranges from user to user, the eCommerce best practices provides us with some of the more obvious reasons as to why this event occurs. Among the most common reasons are High Shipping Costs (44%), a customer not being ready to make the purchase (41%) and a high product price (25%)

In the following infographic, another important area highlighted are conversion optimization problems during the checkout process. The top 10 reasons for this in no particular order are:

• Insecure checkout
• Requiring unnecessary information
• Not displaying visitor’s progress in the checkout process
• Loosing customer input when a submission causes an error
• Not allowing for “Guest Checkout”
• Displaying website navigation during the checkout process
• Layout page design that conflicts with the eye flow
• Displaying discount code box late in the checkout
• Using cross-sells and up-sells during the checkout process
• Multiple calls to action buttons with the same design and in close proximity

Click to enlarge infographic: Shopping Cart Abandonment Rate and Statistics

In reviewing the infographic, some things to keep in mind are the following:

How does your site match up against the check-list of items?

Is your site falling behind in areas that are pointed out as common reasons for conversion problems? Use the infographic not only as an informative resource, but as a tool to improve your own website.

Are you optimizing?

As search engines are often the biggest driver of traffic and conversions, making sure that your website is search engine optimized is crucial for success. Ignoring SEO early on can have severe consequences long-term as it will become harder to improve the search engine readiness of your site as time passes.

In addition, making sure your site is optimized to lead to conversions is something that shouldn’t be ignored. This includes where ‘buy now’ buttons are as well as items like where to put newsletter sign-ups.

Is your site ready for the future of eCommerce?

Aside from search engines, social networks are starting to become relevant in regards to driving traffic to eCommerce sites and converting into sales. Whether you are starting a brand new eCommerce site or working with a pre-existing one, consider how your site will fair in the next 6 months, as well as the next 2 years. Are you ready for social integrations or is the current eCommerce platform you use limited in growth potential?

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What kind of statistics are you seeing in regards to customer drop-offs? How are you improving your shopping cart abandonment rate? Let us know in the comments below.

Infographic credit to invesp

Interview details:

• Carmen Sognonvi
• Website: http://www.carmensognonvi.com/
• Twitter: https://twitter.com/#!/carmensognonvi

About Carmen:

Carmen Sognonvi is co-owner and general manager of Urban Martial Arts in Brooklyn, NY.  Her views on local business and entrepreneurship have been featured in Fox Business, Inc.com, and Crain’s New York Business.  You can reach her at (646) 504-4092 or carmen AT carmensognonvi.com.

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Carmen is such a terrific person and professional.  I love that she not only talks the talk on her blog, but she walks the walk as well because she’s a local business owner.  In her interview, Carmen gives concrete tips that a local business can utilize to use social media to drive traffic and retention.  If there’s one thing I learned during the interview, it’s that online content is the most important asset that a business owner can focus on for the web.  Without content, there is no social presence.

Enjoy the video!

Tell us about yourself and your business

Carmen and her husband started a martial arts school in 2008 called Urban Martial Arts based in Brooklyn, New York.  In addition, Carmen blogs at http://www.carmensognonvi.com/ about local business and local marketing.

How do you currently use social media for your business?

The Urban Martial Arts blog is the central hub where all of their content lives.  Carmen posts 2-3 posts per week that are mostly composed of video.  She finds that video works very well for them because martial arts is a very visual medium.  People get excited about social media, but they forget that it’s just 1 piece of online marketing.  Email is their number 1 tool in terms of disseminating content online.

How do you capture emails?

Every way that they can!

People can opt-in on the blog to download a special report.  They also capture the email of current students and people that sign up for a trial class.

What kind of special reports are you writing?

One of their most successful topics is bully prevention.  It’s a topic that a lot of families are concerned about.

Carmen wrote a 7-part series about bullying and bullying prevention.  Read part 1 of bullying prevention.

Their special report about bullying has become the number 1 download on their blog.

How did you write the special report?

Carmen single-handedly wrote the report, costing her “blood, sweat, and tears.”

What advice can you give business owners that don’t know what content to create?

Content doesn’t have to be text – it can be video.  Check out Urban Martial Arts videos.

Writing comes naturally to Carmen, but she’s transitioned to video because her husband is great in front of the camera and because video is a better way for them to distribute content for martial arts.

Carmen and her husband play to their strengths.  You can do text, video, or photos.  Find something that plays to your strengths and have fun with it.

The perfect marketing plan is only as perfect as those who execute it. As a business owner, having the right individual to lead your digital marketing initiatives can be the difference between creating relevance and creating noise. In today’s current digital climate, where everyone calls themselves a social media expert, this can be an especially difficult task.

While the traditional route in filling a position is to post a job opening on a job board or in some cases a recruiting agency, employers are looking toward social media to find the right talent for their digital positions such as community managers and digital marketing coordinators. From Twitter to blogs, the amount of talent available is abundant; the hard part is finding the quality.

If you are currently in the process of hiring or evaluating your digital marketing team, here are 5 things to consider when choosing an individual to lead your digital marketing efforts:

1. Brand Awareness – Perhaps the most important factor to consider, the individual who leads your brand online should be someone who has a full understanding of your brand, past and present. From knowing how the company started to knowing how the brand has evolved (product, brand message, etc.), having a firm understanding and foundation of the brand will be reflected in their level of engagement and creativity.

2. ROI – As making money is the most common reason for starting a business, asking the candidate about what they believe the ROI of their digital marketing efforts will be is a must. While branding and ‘awareness’ are definitely important results of digital marketing, at the end of the day if it doesn’t generate or lead to some sort of revenue, it’s just frosting without a cake. Remember to never sight of what the goal is.

3. Experience – This is standard for any job. Knowing the level of experience that candidates have is one of the first things you look at. For positions in the digital space, it’s important to look at the following in particular:

• Types of projects and industry?
• ROI – Was the goal to generate revenue or just awareness?
• Role in the projects
• Platforms used – Only Twitter? Only Facebook? If so, why?

4. Creativity – The digital space is like a blank canvas. You have the opportunity to create something brand new or you can copy what someone else has done. Ultimately, it’s up to you as far as how creative an individual you need, but having an individual who innovates and creates new ideas has its advantages. Check out this great campaign by Bing for Jay-Z to see how creative things can get:

5. Direction – A final thought to consider when selecting the right person for the job is what they envision being the future of your brand. Is it to grow into new markets? New product lines? As the person that leads your entire digital presence, they will play an important role in shaping the direction your company and brand grows. Be sure to bring on someone who will compliment your future plans.

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What are some things you look for when bringing in someone to lead your marketing efforts? Let us know in the comments below.

Whether you are a large corporation or a small mom and pops business, local marketing plays an important role in generating buzz and interest in the area around your business. Contrary to popular belief, being successful with your local marketing doesn’t mean you need to have a huge budget. While it helps, execution and a clear, well-thought out strategy is often the key determinant.

Depending on who your target consumers are as well as other factors, such as the type of business (grocery store, gas station, etc.), there are many marketing avenues that a business may choose to take. On the digital end there is Facebook and Twitter while for those looking for a more traditional approach there are press releases and mailers.

So what is local marketing?

Also known as ‘neighborhood marketing,’ local marketing generally refers to any marketing techniques a business uses to market and promote itself to the area in which it operates. In most cases, local marketing often becomes the responsibility of the franchisee with the parent company being responsible for the national and regional marketing initiatives. An example of this is how McDonald’s would focus on national advertisements that focus on brand awareness and new products that will be at all the stores across the nation, while the individual franchise owner may promote special deals they have on Monday’s at their own location.

If you are looking to jump-start your local marketing, here are four easy tips on how to gain the interest of those in the area around you:

1. Events
   One of the best ways to create interest and buzz in your business is to create special events. Events are an excellent opportunity to meet your customers as well as an opportunity for them to meet you. As the saying goes, first impressions play a big role in a relationship; use a kick-off or an annual event as a way to stay connected with your local area.
   
   

   Santa Cruz Whole Foods Market Community Event

   If you are looking for a great example of how a business is using events to stay connected and engaged with their community check out your local Whole Foods Market. Although stores are supported by corporate nationally, each location hosts their own special events for shoppers

2. Partnerships
   Another opportunity that businesses should explore is partnerships with other local businesses as well as non-businesses organization. An example of a non-business organization is the local high school.

   One strategy that is effective is to partner up with a school program at the locals schools through performance based donations (ie: $100 for every win, etc.) as well as through catering school functions. The plus side of these opportunities is that you will brand yourself as part of the community playing off of the ‘support your local business’ mentality.

3. Local PR
   When most people think of PR, they think of dollar signs. It’s true that press releases and PR assistance often comes with a price, but there are still plenty of options of the dollar conscious businesses owner. Some strategies to gain some local PR includes hosting invite only events to local media outlets (ie: newspaper, local news, etc.) and early previews of new products. 
4. Word of Mouth
   Never underestimate the power of a good recommendation. As most marketers will tell you, the strongest ally of a businesses is a positive recommendation of your businesses from one person to another. Just how a letter of recommendation can be the make or break in getting a job, recommendations are forms of endorsements by individuals who are putting their credibility on the line for your business.With that in mind, a business should always look for ways to improve the customers experience. Especially from a local marketing perspective where in corporate will not be able to help, knowing what your customer thinks of your business will not only help you improve, but also know what you are doing right.

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How do you market to your local area? What have you seen effective? Let us know in the comments below.

Andreeson Horowitz recently invested $10 million into loyalty startup Belly.  I’d like to start off by congratulating the Belly team on their Series B – we wish you good luck in reaching Groupon-like scale.

This recent news warrants a fair and honest comparison between Belly and RewardMe.  We welcome the founders of Belly to write their responses in the comments section at the end of this post to continue the discussion.

Comparison snapshot: this post will compare Belly and RewardMe in the following 6 important customer loyalty program topics

1. Customer sign-up rate: how many new customers sign-up to the program
2. Participation rate: the number of check-ins to the rewards program
3. Return on investment: measurable ROI that is backed by data
4. Reward structure and customization: the ability for the business to customize rewards
5. Data capture: the type of data that is collected from consumers
6. Ease of use: ease of use for the business and the consumers

Customer Sign-up Rate

Belly

According to the article by CNET, Belly has achieved the following numbers:

Note: date range of August 2011 – April 2012 (270 days)

1. 1,400 locations
2. 200,000 users

Lets analyze the data to get numbers that are useful to a merchant:

Users per location: on average, there are 143 users per location

New users per day: on average, 741 new users sign up per day

New users per location per day: on average, there are .53 new users per location per day

RewardMe

For the comparison, we will use the numbers generated from our fast casual restaurant client located in Texas with 16 locations:

Note: date range from December 2011 – April 2012 (150 days)

1. Franchise with 16 locations using RewardMe
2. 39,008 users

Lets do the same analysis that we did for Belly above:

Users per location: on average, we have 2,438 users per location

New users per day: on average, 260 new users sign up per day

New users per location per day: on average, we have 16.25 new users per location per day

Conclusion

RewardMe has 31x the customer sign-up rate as Belly: 16.25 new users per location per day vs .53 new users per location per day

Participation Rate

Belly

According to the article by Tech Crunch, Belly has achieved the following numbers:

Note: date range of August 2011 – April 2012 (270 days)

1. 200,000 users
2. 800,000 check-ins

RewardMe

For the comparison, we will again use the numbers generated from our fast casual restaurant client located in Texas with 16 locations:

Note: date range from December 2011 – April 2012 (150 days)

Ease of use

Belly

Check out the video case study for a yogurt shop

Process for tech-savvy customers:

1. Download Belly App
2. Open Belly App on phone
3. Scan code on the iPad 2

Process for non-tech-savvy customers:

1. Grab a Belly card
2. Sign up card online
3. Remember to bring the card with you every where that you go
4. Scan card on the iPad 2 screen

Process for merchants:

1. Promote Belly to its customers
2. Call Belly when they run out of Belly Cards to replenish cards

RewardMe

Check out our video case study for a yogurt shop

Process for ALL customers:

1. Punch in mobile number on the iPad screen

Process for merchants:

1. Promote their own branded rewards program (watch how in the video, Fraiche promotes the Fraiche Rewards Program and not RewardMe)

Conclusion

RewardMe is easy for ALL customers to use – no phone, no mobile apps to download, no QR codes to scan.  Every customer is accustomed to punching in their mobile number at the grocery store during checkout.  Because they’re already accustomed to this behavior, it’s extremely easy for every customer to sign up to RewardMe.  This is why we have 20.2% sign-up conversion rate for customers.

Belly on the other hand is cumbersome to use.  Customers must download a mobile app in the store (often while in line), open the app, and scan it on the iPad 2.  If the customer isn’t tech savvy, then they have to carry around another loyalty card, which completely defeats the purpose of using technology to eliminate the need to carry around a loyalty card.

The proof is in the numbers.  RewardMe is easy to use while Belly is a hassle to use – that is why we sign up 31x more customers per location than Belly.

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Final thoughts

Belly is a technology company focused on providing consumers with a universal rewards program.  To satisfy consumers, Belly signs up merchants to their rewards program.  In this way, a consumer is signing up for Belly specifically as opposed to a merchant’s branded rewards program.

On the other hand, RewardMe is a technology company focused on providing merchants with a platform to better understand and engage with customers.  To satisfy merchants, RewardMe makes it very easy for merchants to sign up customers into their rewards program.  This is why our solution is customized to fit the merchant’s brand.

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I look forward to hearing your thoughts about the comparison and to receiving a reply from the Belly team.

Business: Fraiche Yogurt

Type: Yogurt shop

Owner: Patama Gur

Fraiche is an incredibly popular yogurt shop (with 3 locations) that uses RewardMe to power their rewards program.  Patama (the owner) is such a terrific person and incredibly smart business owner.  As you’ll see in the video, she has been hesitant to use a rewards program for a long time because she doesn’t want to give away free food; however, when she found out about RewardMe and the incredible data that we collect, she quickly took action and has used our program to capture over 35% of her customers.

Check out the video to learn more about her first-hand experience with RewardMe.

Tell us about Fraiche Yogurt

Fraiche is an organic yogurt shop where they make all of their yogurts from scratch.  Their innovation is a mini dairy plant located right in their store, ensuring the freshest, best tasting yogurt on the planet!

Why did you choose RewardMe?

Patama has been hesitant since opening Fraiche to utilize a rewards program because she didn’t want to set the customer expectation for free product.  But then when she found out about RewardMe and all of the customer data that we capture and how she can use this data to market to customers at an individual level, she changed her mind and used us for her rewards program.

How do customer like the Fraiche rewards program (powered by RewardMe)?

Customer love it!

They’re super excited because customers love to be recognized.  It’s great for Patama to know that her best customers are being rewarded.

How important is it that your rewards program is POS agnostic?

Patama has 3 different POS systems.  It’s too costly to replace POS systems so that they all match and there may even be a better POS system in the future, so she doesn’t want to spend the upfront cost now.

It gives her comfort that RewardMe works across all different types of POS systems.

How do you utilize a personalized text marketing campaign?

Patama is very excited to let her best customers know that she knows when they haven’t been in.  She wants to send a message that says “we miss you”, and get them to come back into the store.

Are customers hesitant to give out their number?

Some customers are hesitant to give out their phone number, but when she then supports it by letting customers know that they don’t do many marketing messages or that they can opt-out at any time, then customers get more comfortable and join.

Even if they don’t sign up the first time, if they’re coming back and they constantly see it, then they’re signing up on their 3rd or 4th visit.

Would you recommend RewardMe and why?

RewardMe was very easy to implement, very easy to use, the customers understand it, and the payback in terms of customer demographic and information is incredible.

Earlier, we covered how much a restaurant should price items on their menu. In today’s Friday Infographic feature, we highlight the typical American and what is most important when dining out.

In 2011, the Restaurant Marketing Group, a division of ZenMango, performed a study that measured the likelihood of consumers returning to a restaurant brand. Among the findings, it was reported that 44% of restaurant customers say they are eating out less often and that 36% of respondents said they are purchasing more prepared food from grocery stores, as opposed to restaurants, than they have in the past.

With the average consumer more budget-conscious than ever, it’s important that players in the restaurant industry understand the financial aspects that their target customers now face as well as the factors that consumers rate as the most important when dining out.

As you will discover in the following infographic entitled The Skinny on Dining Out: Are Restaurant Menus Ruining Our Health Ambitions, consumers rate the following as the most important when dining out:

• Food Quality & Taste: 65%
• Customer Service: 37%
• Menu Variety: 27%
• Healthy Options: 26%

In addition, more and more consumers  are opting for dining options with healthier items on the menu. If you haven’t already, consider adding healthy item options to your menu. This will insure that you are meeting the needs and demands of all your customers.

Click on the following infographic to learn more about the growing economic trends and consumer preferences when it comes to dining out:

Click to Enlarge Infographic

Statistic that restaurant players should be aware of: In 2012, consumers are projected to spend 5 percent less per meal when dining out.

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How does your restaurant cater to the budget-conscious consumer? Have you adjusted your prices to match the expectations of your customers or have you not changed anything at all? Let us know how you address the changing needs of customers in the comments below.

It has become a necessity to capture your best customers and make them feel special in this competitive market.  That is how you will keep them coming back.

What do you think of when you hear “customer loyalty program”?  For the past 10 years, franchises and small to medium-sized restaurants and retailers have been plagued by the limitations of basic punch cards and loyalty cards.  A loyalty program must have a purpose beyond simple reward redemption: a loyalty program must capture customer information, offer redemption security, and drive positive customer behavior to prove ROI.

In 1981, American Airlines started the first frequent flyer program for its best customers.  Now, every airline you can think of has their own version of the frequent flyer program – it has become a standard for what customers expect from an airlines and a rewards program.

Today, retailers and restaurants have a multitude of options available to create a rewards program:

• Loyalty cards
• Email marketing campaigns
• Text message programs
• Facebook, Twitter, and Foursquare

Companies spend more than $2 billion a year on loyalty programs.  Statistics show that the average American household belongs to 14 rewards programs, but is only actively using 6 of them.

How will you make sure that your loyalty dollars are used effectively?

The following are the crucial elements of building and optimizing your customer rewards program.

1. Determine the type of loyalty program

The following types of businesses require a frequency or point-based loyalty program to stay competitive and to retain their best customers:

1. Retail stores
2. Restaurants
3. Travel companies
4. Salons or spas

In contrast, service-based businesses with customers that visit on an infrequent basis such as mechanics, lawyers, or accountants will benefit from a variation of the standard loyalty program.  These service-based businesses will benefit from a rewards program that drives customer referrals via word-of-mouth and word-of-click marketing.

Answer the following questions before you build your loyalty program:

1. What is the average order value of your best customers?
2. How often do your best customers return?

In general, your best customers compose the top 10% of your business.  These top customers are worth an estimated 5 – 6 times more than the other 90% of your customers.

Therefore, when building your loyalty program, design it for your best customers.

2. Create rewards that drive the best behavior

Rewards must drive a positive action.  For example, if you want to increase average order value, then offer a complimentary cookie with the purchase of any full meal combo.  If you want to drive signups to your email list, then offer a free upgrade on a drink today for joining your email list program.

Here are the three universal principles that you should follow when creating rewards:

Expand beyond discounting

Discounts lower the quality of the brand and also teach the customer that the item they’re purchasing is worth less than full price.  Instead of discounting, add a bonus to a purchase.  For example, “Spend $10 and upgrade your smoothie to a large for free.”

Small, quick rewards rule

Too often, franchises and small business owners limit themselves to punch cards that offer the “Buy 9 get 1 free” reward”.  These types of rewards are proven to NOT drive customer action because the rewards take too long to get redeemed.  What has proven to drive customer and user action are small, quick rewards that can be redeemed by the 2nd or 3rd visit.  Therefore, instead of offering a free burger after 9 visits, offer a free small french fries after 2 visits.

Generosity and recognition are key

Your best customers not only spend the most at your business, but they also tell their friends and family to shop at your business.  It is therefore in your best interest to make your best customers feel special and recognized.  A great way to do this is to encourage and support their word-of-mouth efforts.  A great example is the creation of a referral program: invite 5 friends and get a free smoothie.  You’ll see an increase in new clientele because customers will be motivated to tell everyone about your business.

3. Maximize customer acquisition

Your employees are by far the most effective part of getting customers to join your rewards program.  Unfortunately, employees are very forgetful and will NOT tell every single customer to join your rewards program.  It is therefore of vital importance that the opt-in process of your loyalty program is cashier independent.

At a high-traffic store, fast line speed is critical, and your rewards program needs to be fast and efficient to accommodate the needs of your customers.

The following are essentials to optimize customer acquisition:

Fast sign-up process

Punch cards are fast, but insecure and easily cheated.  Loyalty cards capture customer information, but take the customer 2 minutes to sign up.  A customer will not fill out a form when there is a long line of customers waiting to get in their order.

Solution: Customer-autonomous sign-up tied to the customer’s mobile number.  It takes a couple seconds for a customer to type in their phone number while in line to join your rewards program.  RewardMe utilizes an iPad tablet at the point of sale to capture the customer’s mobile number and ensure line speed remains fast.

Easy management for rewards

Loyalty cards allow the customer to earn points; however, it does not offer an easy to use platform for customers to manage their rewards and find out how close they are to a reward.  After all, the closer you are to a reward, the harder you’ll work to achieve it.

Solution: Utilize a universal platform that allows customers to manage their points and rewards online on a mobile device.  RewardMe acts as a universal shopping identity, so customers can manage all of their points and rewards from a single location.

Sign up reward

The majority of your customers are lazy; they don’t want to fill out a form, they don’t want to give out their information – all they want to do is move on and eat their food.  It is difficult to acquire these people into your rewards program because they don’t feel an immediate need.

Solution: Create a 1-time immediate reward that customers receive for joining your rewards program.  If you’re a pizza spot, then the immediate reward can be a 3-topping pizza for the price of a 1-topping pizza.  If you’re a retail store, the immediate reward can be 10% off your entire purchase today.  RewardMe has a robust rewards tool that allows you to customize rewards to suit your needs.

4. Drive customer behavior through data personalization

The most important part of a loyalty program is the ability to capture vital customer data and assign the data to an individual.  You need to know which of your customers come in during lunch, which of your customers have spent more than $200 in the past month, and which of your customers absolutely love your salads.  Without this important data, you won’t know how to drive customer behavior.

Personalization of messages

By collecting a customer’s email and phone number, you can set them up for email or text-message marketing campaigns.  Furthermore, if you couple this with the information you gather about the customer through a rewards program – information such as purchase patterns and behavior – then you can send targeted messages specifically tailored to the customer.

For example, if a customer has bought 5 sandwiches at your business, then you can send them a text message on Wednesday afternoon that says, “Invite a friend! Buy 1 sandwich and get 1 free!”  The goal here is to drive a loyal customer to invite a friend and get them to love your business as well.

Cross-promote and up-sell

You can take this to the next level by offering cross-promotions and up-sells through the data you collect.  For example, if a customer is purchasing a pair of shoes, then immediately offer them a pair of socks or jeans that compliment the shoes.  The RewardMe tablet is an excellent way to visually up-sell at the point of sale and get a customer’s average order value higher, or make sure that he returns soon to buy the complimentary items.

You can even sweeten the deal and make your best customers feel extra special – offer a time-sensitive deal on the purchase of a package of items:

These shoes would go great with a pair of jeans from our boot-cut section. Purchase any pair of jeans now with your shoes and get 5$ of your purchase today.

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These techniques are your guide to help you get started with your rewards program.  If you have any questions, make sure to ask us in the comments section below.