Creating a loyalty scheme that really works requires a deep understanding of your customers, a clear desired customer behaviour and data to help you understand your results.
Mark Rooker, Commercial Manager, Sheffield Hallam University, has some extensive research data from 2017 to 2023 which shows the habits of students on campus and the impact on services. Marks insight resonates across all hospitality outlets who are struggling to use loyalty schemes to change customer behaviour and meet commercial goals.
Why do loyalty schemes fail?
Mark Rooker comments ‘All too often loyalty schemes are not given the time, resource, or insight they need to make them effective. Loyalty schemes have been used as a quick fix and end up not providing the desperately needed revenue boost’.
How can I generate additional revenue with a loyalty scheme?
Mark Rooker’s study shows that loyalty schemes are a huge, missed opportunity for the hospitality industry, and by focusing on 5 key elements they can produce the required customer behaviour to boost revenue. Remember one size does not fit all, you need to understand your customers, your brand experience and the change behaviour you need to boost income. Working with an EPoS system that has the flexibility to adapt to your needs will help you realise your potential.
How can and EPoS system help a loyalty scheme?
Phil Lee-Warren, Technical Director, Uniware comments ‘We have had a steady take up in both loyalty points schemes and the use of the different promotional types, provide as standard elements of our EPoS system and UPay.co.uk website and apps. Many of the organisations we work with either have, or are able to sharply improve repeat business through loyalty schemes, or communities of customers if incentivised in the right way.’
Uniware provide a number of loyalty scheme features giving our clients the flexibility they need to tailor a loyalty scheme to meet their goals, for example:
- Upay is a closed loyalty system so you know your customers, you can easily control the points, and redemption value
- Self-registration or Upload members – customer can sign up to the app themselves or you have the ability to upload your employees/students to a scheme.
- Loyalty point schemes with easy-to-use redemption rates and parameters, extra loyalty points can be added to targeted products
- Unidentified customer promotions – such as meal deals, multi-buy and discounts
- Identified customer promotions – In-app messaging and you can see the read rate
- Cashiers don’t need to be notified of the deal, it syncs to the till and is applied automatically on qualifying sales
- Configurable sales summary reports via the Uniware Cloud portal
Loyalty schemes are not a short-term solution they have to be an ever-evolving marketing tool, using data and insight to adjust, refine and create the desired customer behaviour. By following these steps, you can create a loyalty scheme that not only attracts customers but also keeps them engaged and loyal to your brand.
5 easy steps to creating an effective loyalty scheme
1. Define your goals
Start by defining what you want to achieve with your loyalty scheme. Is it to increase customer retention, encourage repeat purchases, or attract new customers? Having a clear goal in mind will help you design a loyalty scheme that is tailored to your business needs.
What you want from a loyalty programme?
• Customer to switch products
• Lower waste
• Use different outlets
• Visit you at a different time
• Increase spend per visit
2 – Understand your customers
Gather data on your customers, including their demographics, preferences, and buying habits. This will help you design a loyalty scheme that resonates with them and meets their needs.
Do you know if its a repeat customer? Have they signed up to your scheme? Some promotions such as meal deals, multi-buys and discounts can be single purchase events and you don’t need to identify the customer.
3 – Offer meaningful rewards
Offer rewards that are relevant to your customers and provide real value. Consider offering exclusive discounts, early access to new products, or VIP experiences. Offer incentives for signing up, such as a welcome discount or bonus points.
4 – Personalise the experience
Use customer data to personalise the loyalty experience. This could include personalised offers, rewards, and communications that are tailored to individual preferences. Keep the process of joining your loyalty scheme simple and straightforward.
5 – Measure and adjust
Continually monitor the success of your loyalty scheme and make adjustments as needed. Use data analytics to track customer behaviour and identify areas for improvement.
With Uniwares ‘Insight plus’ module you can visually see patterns and what’s working to improve your profitability.
