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Loyalty Programs are about to have a big year, as retail and restaurants battle out for customer wallet share. Before you buy - three questions to ask >>> 1. Who ultimately owns the data? Your customer data should be treated as confidential and it is yours, and there should be no costs or fees to port your data OUT of the software if the contract is terminated. Regular access should not be a problem, either. Live feeds of data into your other systems are ideal, but be prepared to pay for API and connections will be yours to manage. 2. Who can use the data and how? It's not uncommon for providers to anonymize data from your customers and resell it. Be aware of provisions in agreements that allow for ANY use of anonymized data. Are you ok with your customer data being used for profit? Being shared with a competitor? 3. Who owns the Intellectual Property (IP)? A widespread issue I see in technology agreements is a lack of representations, warranties, and related insurance and indemnification - all around the IP that drives the software. Seek counsel (!!!) but in general, companies should stand behind their product. If they rep and warrant they own the IP they are selling you, and if they are sued for infringement, they should fully indemnify you. IP litigation is expensive, so think about requiring the vendor to be insured (and name you as an additional insured) on specific IP insurance that would cover these instances. What other questions do you think a prospective buyer should think about? Tell me below... ... and a great read below from McKinsey on loyalty program research. Work a five-minute scroll! Enjoyed this post? Please consider following me and hit the 🔔 button to follow my honest journey of entrepreneurship, investment, and radical change in the restaurant industry. Need some help? I offer 1/1 coaching (DM me) and you can speak to our team anytime at fullcourse.com. #techology #restaurants #restauranttechnology #restaurantindustry #marketing #branding #food

Yeah digital is cool, but have you tried to have physical loyalty instead !? Digital loyalty programs are everywhere today. You can enroll, check in, and manage your account all online. I am not saying that we should go back to the punch card, I still remember when my mother carried 25 loyalty card in her purse and needed 10 minutes to find the right one at the casher! But it has made membership too impersonal and easy, diluting the sense of community and belonging that comes with a physical element. For instance, the first members of American Express proudly displayed their low subscription numbers, signaling their elite status. Similarly, Freemason utilised special handshakes, providing a secretive yet tangible way to confirm membership and foster a sense of community. I believe there's a growing trend to reintroduce tangible elements into loyalty programs. Brands like Blackbird Labs and HUGO BOSS have integrated physical dongles in their stores. These serve multiple purposes: they allow members to tap their phone and collect points, and even help advocate the program to non-members. This physical interaction creates an almost Pavlovian response: I know when I see the Blackbird device, I instinctively reach for my phone to engage, whereas, with other digital-only programs, I often forget I'm a member. The hospitality industry, with so many guest touch points—from check-in desks to breakfast areas to pool sides—is perfectly positioned to capitalise on the benefits of physical loyalty. Integrating tangible elements could enhance the guest experience, making loyalty not only visible but also more memorable and engaging.

Is Member Pricing a Loyalty Crown Jewel or Fool's Gold? 2023 saw fiery debates among loyalty practitioners about member pricing. Critics warn it's just fancy discounting with added risks, potentially alienating non-members who may take their custom elsewhere. I believe that classifying member pricing as discounting does a disservice to its potential. Member pricing is not new and is already used by successful retailers like Countdown Supermarkets, Dan Murphy's and Rebel Sport. However, it has also recently been introduced at Coles Group/Flybuys, Sainsbury's, Tesco, The Warehouse Group and Woolworths Group, suggesting there's more to it than meets the eye. When wielded wisely, member pricing can be a win-win for retailers and customers. Here's why: Beyond the Hidden Discounts: Most loyalty programs are already based on the foundation of discounts, albeit masked by the need to collect points. Take a typical points program offering one point per dollar spent. Redeeming them for a $10 voucher after 2000 points translates to a 0.5% discount. While this "deferred gratification" model encourages loyalty through repeat visits, it often leaves smaller purchases and entire shopper segments out in the cold. Scan rates, even for the most popular programs, reveal this disconnect. Enter member pricing: its immediate discounts entice those with tighter budgets and shoppers hesitant to join points-based loyalty programs. Nuanced Discounts, Lasting Loyalty: While traditional member pricing resembles above-the-line discounts, it doesn't have to be a blunt instrument. Consider these examples: - Amazon's "Subscribe and Save" offers recurring discounts and automated delivery (free for Prime members) for customers who commit to recurring delivery of everyday products. - Waitrose & Partners empowers loyalty members to choose discounts that personally resonate. - BIG W went bold in 2023 with a 20% discount on all children's and babywear for Everyday Rewards members, targeting a specific category instead of individual products. These models illustrate the potential flexibility of member pricing. It can be tailored to diverse needs and preferences, fostering deeper engagement and loyalty. Challenges Admittedly Exist: Of course, member pricing has its downsides. Alienating non-members and potential profit dips are real concerns. Ultimately, its success hinges on delivering tangible value to both customers and retailers. Sophisticated retailers will find ways to navigate these challenges and leverage member pricing's strengths. A prediction for 2024 is that we’ll see member pricing used more widely and in new ways, proving itself to be more than just a fleeting trend.

I belong to many free loyalty programs, and I pay for many services, but I don’t pay for any loyalty programs. McKinsey & Company believes paid loyalty programs could be key to accelerating growth for brands and retailers. They create a type of long-term lock-in that comes from that financial commitment. 𝘋𝘰 𝘺𝘰𝘶 𝘣𝘦𝘭𝘰𝘯𝘨 𝘵𝘰 𝘢𝘯𝘺 𝘱𝘢𝘪𝘥 𝘭𝘰𝘺𝘢𝘭𝘵𝘺 𝘱𝘳𝘰𝘨𝘳𝘢𝘮𝘴?

🌟💳 Unlock Rewards, Embrace Loyalty! 🚀 Ever wondered how your favorite brands keep you coming back for more? The secret lies in the magic of Loyalty Programs. 🛍️✨ A Loyalty Program is your golden ticket to exclusive perks, rewards, and a VIP experience with your go-to businesses. Here's how it works: Earn Points with Every Purchase: Every time you shop, dine, or engage with a participating business, you earn points. It's like racking up bonus stars for simply being a valued customer. Redeem for Exciting Rewards: Collect enough points, and you unlock a treasure trove of rewards. From discounts and freebies to exclusive access, your loyalty is reciprocated with a little extra love. Exclusive Discounts and Promotions: Loyalty programs roll out the red carpet for their members. Enjoy member-only discounts, early access to sales, and special promotions tailored just for you. Birthday Treats and Milestone Celebrations: Your loyalty is celebrated! Expect special treats on your birthday and recognition for reaching loyalty milestones. It's like having a personalized celebration with your favorite brands. Stay in the Loop: Loyalty programs keep you informed about the latest products, services, and promotions. Be the first to know and stay connected with your preferred brands. Access to VIP Events: Some loyalty programs offer exclusive invites to events, launches, or behind-the-scenes experiences. Imagine being part of an inner circle with access to events that others can only dream about. Personalized Recommendations: As a loyal customer, businesses get to know you better. Enjoy personalized recommendations based on your preferences, creating a tailored shopping or dining experience just for you. In a nutshell, a Loyalty Program is your key to a world of extra perks and personalized experiences. It's a mutual appreciation society, where your loyalty is recognized and rewarded. Ready to turn your regular purchases into a celebration? Join a loyalty program today and start unlocking the magic! 🌐🎁 #LoyaltyProgram #Rewards #CustomerAppreciation

Is it any surprise that identifying and receiving value is travelers' top priority for their loyalty programs? The big finding however, is how much value dictates how frequently consumers interact with their loyalty programs – 65% say they would engage more with their loyalty programs if they offered better discounts. More here from the latest iSeatz report. #loyalty #loyaltymarketing #travelindustry https://lnkd.in/gvhH7sms

Is it any surprise that identifying and receiving value is travelers' top priority for their loyalty programs? The big finding however, is how much value dictates how frequently consumers interact with their loyalty programs – 65% say they would engage more with their loyalty programs if they offered better discounts. More here from the latest iSeatz report. #loyalty #loyaltymarketing #travelindustry

Is it any surprise that identifying and receiving value is travelers' top priority for their loyalty programs? The big finding however, is how much value dictates how frequently consumers interact with their loyalty programs – 65% say they would engage more with their loyalty programs if they offered better discounts. More here from the latest iSeatz report. #loyalty #loyaltymarketing #travelindustry

Is it any surprise that identifying and receiving value is travelers' top priority for their loyalty programs? The big finding however, is how much value dictates how frequently consumers interact with their loyalty programs – 65% say they would engage more with their loyalty programs if they offered better discounts. More here from the latest iSeatz report. #loyalty #loyaltymarketing #travelindustry

Let’s talk loyalty! If all goes to plan tonight I will get to preview a film 🎥. The ticket is a courtesy reward for being a Sky customer for over 10 years. Let’s look at the maths… Let’s estimate a cinema ticket value at £15. This is an exclusive preview so let’s up the value to £30. I’ve been a customer for 10 years, so £3/year. Across TV, broadband and mobile I spend c. £160 a month with Sky. That’s £1920 per year x 10 = over £19k spend in 10 years. Omg 😦 when I look at it like that, it’s a ridiculous amount of money. So a £30 cinema ticket 🎫 is a 0.15% return. That’s 💩 for 10 years loyalty. I appreciate they send me offers monthly but most of the time they aren’t of interest. Meanwhile by being loyal to Tesco I estimate I get £50 a year in reward vouchers. If I was savvy I could x4 that amount by applying for partnership deals. I am not that committed. My estimated spend per year in groceries and fuel is maybe £5k so that’s about a 1% return. Significantly better than Sky. Nando's UK & IRE give me a chilli 🌶️ when I spend £7 in a transaction, but only one chilli per visit and I need 10 chillies 🌶️ for a red reward. So at the best minimum I’d need to spend £70 minimum to claim a whole chicken at £16, that’s 22% return (albeit no one every spend just £7 per trip in Nando). Wow, much better value than Sky or Tesco! The point is; - How much do loyalty schemes actually change behaviour? Are you rewarding those who’d buy anyway or actually encouraging increased frequency and weight of purchase? - Truly, how rewarding are loyalty schemes to consumers ? Do consumer value them or are they simply draining resource and eating profit BUT ticking a box for the marketing department? - Are rewards lower and more cosmetic in categories where switching propensity is lower? Aka Sky! In my opinion PizzaExpress has the best loyalty scheme. I favour PizzaExpress other other restaurants, knowing I will earn a pizza slice 🍕. As a gold member I reap the benefits of loyalty on every visit and this promotes more visits. I strive to continue to be gold. The ability to change restaurant is easy, Pizza Express work hard to attract me and stop me opting for another chain. Sky, Sky know changing my TV, broadband and mobile is more challenging and therefore I think their loyalty program is designed to be more lip 👄 service than customer service. What’s your loyalty program? Is it truly of value to your customer, does it influence behaviour and position you as first choice or is it just a vanity metric and resource burden for your marketing team? #loyalty #CRM #customerloyalty #marketing #customervalue