We recently asked CCSA members about their loyalty programs and how they worked. Most who had programs in place said they were based on spending and earning a discount for volume spending. Let’s take a look at some elements that can help make the loyalty program a win-win for the customer and the studio owner.
One of the main problems with loyalty programs is that they not really a centerpiece in the studio that is used for promotion. The program should be one that your staff can get excited about and talk to your customers about to get them excited about returning to your studio and even bringing friends.
Start your program with a win for the studio! We suggest that you charge $19.95 annually for your program. On the first purchase of the program, you could offer a 20% discount on their purchase that day as an enticement. So if they purchase $100 that day, the program entry is basically free. I know that is probably a higher ticket than you expect, but you will also offer a future discount for the year of 10% off their ongoing purchases for the rest of the membership period. The percentages and fees can be changed to match your program.
TIP: Use the program especially in your slower times of the year (when you will have more time to talk to guests) to increase your revenue! Offer an incentive to your staff to promote the program and get them excited about getting new members. It does not have to be a monetary prize. Little things can gather excitement too: Have a pizza day for the whole staff, bake cupcakes, give RedBox or iTunes gift certificates. Get creative and partner with a nearby restaurant or business for your prizes.
If you raise prices by 10% at the same time you install the loyalty program, you can offer your already loyal clients the ability to eliminate the price increase by joining your program. You also won’t leave money on the table when those once a year visitors come by who are not price conscious buyers.
A requirement of the program is to collect name, address, phone number and email address. You can also add on birthdays or anniversaries to help with future marketing ideas if you would like. You may even want to track your marketing by asking how they originally found out about your studio.
Don’t create a POS nightmare by making your customers keep up with special numbers or cards to be in the program. Keep it simple. Most POS software includes a note field or even an expiration date for the program so you can look it up by name when a customer checks out.
We are passionate about helping PYOP Studios succeed and would love to speak with you about your loyalty program ideas and other financial related issues. Let us show you how to focus on what increases sales and remove tasks that don’t make you money. We’ll help you simplify your bookkeeping process and you will see immediate results. Our technology-based systems make it easy on you and refocus your energies and talents to the bottom line. Please visit us at www.pyopaccounting.com or call us today to learn more at 704-752.9845.
