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There are so many different types of loyalty platforms on the market that it can become confusing as a business owner when implementing the right program. Everyone is so conditioned to seeing what works for big retailers as well, that it is easy to assume that what works for them will work in the SMB world…wrong. Let’s have a look at some of the misconceptions happening in the SMB loyalty space.

Customers love marketing emails

loyalty-program-misconceptionsNo…they really don’t, do you love receiving hundreds of emails every day? It takes a very special kind of email to blow email open rates out of the water. Mailchimp says, on average SMB email campaigns average an open rate of 21.53% and that’s by creating outstanding email campaigns, but that’s just an open rate.  For a customer to actually take action on this email is far less. Think before you implement a loyalty program that focuses purely on email and email marketing campaigns, as you may not see the return on investment you are looking for.

 

loyalty-program-misconceptionsCustomers will do anything you tell them to do

Wrong again, it’s incredibly hard to get a customer to behave in a certain way, so don’t leave it up to them. There are plenty of loyalty programs that require a customer to take action in signing up to a loyalty program. They may have to go to a website and sign up or keep a paper or plastic card in their wallet or it may even be scanning a QR code when they arrive in-store. Think about the customer and how much of an inconvenience this is for them. The best advice is removing the friction from the sign-up process and doing it for them, that way you stay in control & don’t leave it up to them to decide.

Birthday offers will generate a tonne of revenue

loyalty-program-misconceptionsTotally false again! We’re not saying it’s going to be a total flop but think about what you personally do on your Birthday. You either celebrate with your loved ones maybe have a party at home and in most cases, your friends will take you out for dinner to a place that they think is nice or to your favourite restaurant. In any of these cases, your small business will probably lose out. Now think about it again, is it really worth running Birthday offers in-store?

Reminder: Focus your energies on the things you can control & don’t leave the rest up to chance

SMS marketing works!

This is only half true, it certainly works but remember the saying “too much of a good thing is bad.” SMS campaigns work because they are short, snappy and grab a customer’s attention immediately but if you bug a customer with predictable and constant SMS messages, all you are going to do is make them “opt out.” Make it exciting and keep promotional campaigns between 2 – 4 times a month.

loyalty-program-misconceptions

 

 

London, 29 November, 2016: Loyalzoo, a leading digital loyalty service provider for SME retailers and restaurants, has taken its subscription offering to the next level by announcing a fully automated marketing engine aimed at targeting customers at the right time with the right offer.

Running alongside Loyalzoo’s easy to use proven loyalty program, the new Handsfree Marketing feature enables companies to send targeted marketing messages to customers, segmented according to their purchasing behaviour.

Using complex mathematical calculations, the system identifies specific customer-types and ensures delivery of appropriate targeted messages. Whether it is new users, high spenders, returning customers or those who have not visited for some time, the appropriate message or offer is delivered automatically, all for a low monthly cost.

The new feature takes only a minute to set up, in line with Loyalzoo’s “hassle-free” uncomplicated approach to the use of technology within independent retail environments.

According to BrightLocal and the Chamber of Commerce, SMEs on average spend $400 per month on marketing. Using Loyalzoo’s Handsfree Marketing, they could reduce these costs by up to 78 percent, while simultaneously running a digital loyalty program.

“For small businesses marketing can be time consuming, costly and sometimes just non-effective. With this in mind we wanted to invent a feature that provides a new twist on “set and forget” marketing and will revolutionise their approach” says Loyalzoo CEO, Massimo Sirolla. “Meanwhile, it allows business owners to focus on what they do best – running their business.”

Loyalzoo is already working with hundreds of merchants across the UK and US, and has been named one of the UK’s top 50 most disruptive businesses by Everline Future 50.

Since 2014, the company has made huge strides in the loyalty space thanks to its easy to use digital service. The stress-free, self service nature of the solution is its unique selling point. “Loyalzoo has been absolutely wonderful! It’s a lot less of a hassle than our previous system since the customers do not need to remember a card. It’s wonderful! It works great with our office and store, we are so happy to have found this system!” says Cynthia Monette, Owner at Avena Integrative Medical Centre of Putnam, Connecticut.

Loyalzoo recently launched a third crowdfunding campaign to support on-going growth and to establish a team in the US, working alongside its UK headquarters (www.seedrs.com/loyalzoo3).

Note for editors

About Loyalzoo – Digital loyalty card service for SME retailers and eateries

Based in west London, Loyalzoo was founded to help small/medium sized businesses compete with larger retailers and brands in an increasingly mobile/digital world. Loyalzoo is unique in the industry, as retailers of any size can setup their own, custom made in-store loyalty program in just minutes, without the need to print cards or buy expensive hardware. It also operates directly from most point-of-sale systems, avoiding any change or disruption for merchants and their staff. Loyalzoo’s service is available directly via the company’s website www.loyalzoo.com, resellers, agents, as well as via the digital marketplaces of Clover POS and Epos Now.

Rhiannon Davies
Growth & Engagement Manager
p: +44 (0)20 3598 3932  
e: rhiannon@loyalzoo.com

Wynne Evans
Wynne Evans Communications
p: +44 (0)7946 418133
e: jwynne_evans@tiscali.co.uk

Loyalzoo, the UK’s most popular digital loyalty service for SME retailers and eateries, is raising £500,000 in funding to support ongoing growth and establishing operations in the US for the innovative, fast growing company.

Loyalzoo, named one of the UK’s top 50 most disruptive businesses by Everline Future 50, will use investment to focus on executing its go-to-market strategy and pipeline, growing US and UK presence and establishing a team in the US to work alongside the UK-based HQ. There will be a strong focus on deploying Loyalzoo across more retail POS platforms, growing partnerships, reseller engagements and merchant user base.

“We are seeking investment to ensure we can roll out as widely and quickly as possible to meet the demands of the market. With hundreds of merchants across the UK and USA, over 300,000 loyalty transactions processed to date and recurring revenues growing 12% month on month, we are an established loyalty service for small to medium sized retailers and restaurants and ready for scalable growth” says Loyalzoo CEO Massimo Sirolla.

The company has already secured most of its target amount from existing investors, and has launched on the Seedrs crowdfunding platform to secure further investment. Within the first two days the company has already raised almost 80% of its £500k target, from over 40 investors. The opportunity to invest will be live until November 30. This follows Loyalzoo’s previous crowdfunding campaigns in 2014 and 2015, which raised a total of over £450k.

The independent retail market is a major opportunity for Loyalzoo. According to Bira (British Independent Retailers Association), there are 279,000 independent retailers in the UK. And according to the NRF (National Retail Federation), there are 3.8M retail establishments in the USA. Three out of four SME retailers can benefit significantly from running a loyalty program, and with Loyalzoo it is all digital, which means no paper or plastic loyalty cards for consumers, and more actionable data for the retailer.

Loyalzoo’s appeal can be readily explained as its innovative technology enables independent merchants to run their own points or stamps based rewards program, without being part of a group scheme, and to compete in an increasingly digital world. The company’s loyalty system runs on most electronic point-of-sale terminals, making it super easy for the merchant’s staff to sign up customers to the program and issue loyalty points. Consumers can then redeem those points for rewards chosen by each merchant. On average, merchants running rewards programs with Loyalzoo see a revenue increase of 11%, from existing customers and without reducing margins.

To follow Loyalzoo’s campaign visit https://www.seedrs.com/loyalzoo3.

Note for editors

About Loyalzoo

Based in west London, Loyalzoo was founded to help small/medium sized businesses compete with larger retailers and brands in an increasingly mobile/digital world. Loyalzoo is unique in the industry, as retailers of any size can setup their own, custom made in-store loyalty program in just minutes, without the need to print cards or buy expensive hardware. It also operates directly from most point-of-sale systems, avoiding any change or disruption for merchants and their staff. Loyalzoo’s service is available directly via the company’s website www.loyalzoo.com, resellers, agents, as well as via the digital marketplaces of Clover POS, Epos Now and Lightspeed.

Happy staff = happy customers

Have you ever had the worst customer service ever? It ruins your day and you walk out of the store fuming. Now have you been served by an absolutely outstanding staff member and their customer service is next level? How amazing does it feel?  Now that’s what helps create loyalty! Maybe it’s time to reflect on your businesses environment and start making some positive changes to motivate staff.

Reward employees for great performance

motive staffIt’s one thing to congratulate the team as a whole but individually rewarding staff for hard work is a great tactic.  It means those who go above and beyond feel appreciated and it makes underperforming staff realise they too can work just that little bit harder.  A few great ways to do this is by:

Note: make sure to reward for various types of work, otherwise you may just end up rewarding the same staff members over and over again.

Incentivise using food to motivate staff

motivate staffWell you’ve heard that food is the way to a mans heart but it’s also the way to a staff members heart. Your employees work hard and there’s nothing better than shouting your team lunch. Without spending too much either, you will find a full stomach leads to better productivity and happiness. Try and use mood boosting food to motivate staff such as healthy burgers incorporating eggs and avocado or why not even try keeping a fruit bowl in the lunch room. You’ll be surprised how much this can change your staff members happiness.

Utilise wall space

motivate staff
Ok maybe motivational quotes are a bit old school but who’s to say you can’t try the following:

Bulletin boards: This is a fantastic way to communicate outstanding work, pictures from staff events, posting about birthdays or if there is nothing to communicate put up a joke. Communication is the key to running a business and if the staff can take part in it and get the creative, the more they will be willing to exchange ideas and converse.

Business news: Sometimes it’s hard to get staff excited about business news. You as the business owner find everything exciting when it comes to advances in the business, so why not let them choose when to get excited by it.  Put up a visual graph to show growth or success so employees don’t have to read, they simply walk in and see straight away how well the business is doing. This will make them feel like they are part of something truly special and that you are all working together to achieve greatness.

Fun pictures: You might get a few eyeball rolls if you start hanging up motivational quotes everywhere but putting up fun pictures with bright colours can enhance ones mood. The best colours for happiness are green and yellow, so get hanging and get those staff happy!

 

Are you finding your loyalty program is lacking some pizazz? Are your customers signing up but only out of necessity, rather than excitement? Let’s explore how you can appeal to your customers with simple SMS based loyalty.

The loyalty industry is always changing but the main concept to keep in mind, is always focus on the wants and needs of your customer. Think to yourself, what makes you excited about a loyalty program? Do you love carrying cards around with you? Do you love filling in your details at a website, to sign up to a loyalty program? Probably not…so let’s jump in and see what SMS loyalty is all about.

Generation instant


SMS based loyalty programA recent report by 3C revealed that Americans check their smartphones 8 billion times a day! So it is not a surprise that consumers are forcing this shift towards SMS, to connect with a store and its brand. An SMS based loyalty program means that customers are engaged with their points and rewards through txt message and also sent promotions through this channel. We are becoming a world of instant messaging, so you can imagine that receiving instant updates about how quickly you are eligible for rewards, can be very exciting! 
Interestingly The Disconnect 2016 report stated that 52% of consumers polled said mobile loyalty rewards & benefits motivated them to purchase more often. Now that’s some big stats.  

Email vs. SMS based loyalty

Remember the days of loyalty programs where you handed over your email address and you were sent a SMS based loyalty programmillion marketing emails. But you signed up to a loyalty program not marketing emails. Have you ever taken action on these marketing emails? This is maybe a good question to ask not only yourself but also your customers. It’s great to think that all of your customers are reading every email you send them but in reality they just want to be part of a loyalty program where they actually get rewarded.  The numbers tell it all with almost 60% of consumers making more monthly visits/purchases because of a mobile enabled loyalty program. Remember it’s all about what the customer wants. Communicate with them in a way that they will respond – 48% of consumers prefer communications via SMS and text. Is it time for you to switch yet?

Digital vs. plastic

The benefits of running a digital loyalty program far outweighs the benefits of using paper or plastic cards. Mainly because gaining loyal customers is not the sole focus. Digital allows you to track increased customer spend, engaging customers using SMS promotions and separating a business from their competitors. Not only that but using a digital loyalty tool is so easy! A good digital loyalty solution allows staff members to sign customers up in seconds. This means customers are more inclined to take part of the program because they don’t have the chance of losing a paper card or having to register a plastic one.

Keeping up with technology


SMS based loyalty programTechnology is advancing and small to medium sized businesses are finding it hard to keep up due to a lack in resources. In fact, 65% of brand marketers say they either lack the IT resources for mobile loyalty integrations or admit they lack the knowledge on how to launch a mobile loyalty program (3C, 2016). So maybe it’s time for you to look at how an SMS based loyalty program can help your business. Click here to see how it works.