On average, 50-60% of customers don't come back, which is why focusing on customer loyalty is so crucial to your success as a business. This guide will help you do that using email, text message, and word-of-mouth marketing tips.
Institutions Supporting Small Business Enterprises.pptx
The Ultimate Guide to Customer Loyalty Success
1. The Ultimate Guide to
Customer Loyalty Success
Your free month coupon is inside :)
2. table of contents
• Free month coupon for FiveStars Loyalty
• Where did all your new customers go?
• 7 Steps to a Great Email Campaign
• 5 Rules of Text Message Marketing
• 10 Ways to Drive Word of Mouth, Online and Off
• Customer Loyalty ROI Calculator
• FiveStars Customer Loyalty Basics
3
4
12
20
28
36
38
Practical Customer Loyalty Tips
3. ON AVERAGE YOU’LL SEE:
20% INCREASE IN CUSTOMER
VISITS PER MONTH
650 OVER
MEMBERS PER LOCATION
UP TO
10x
RETURN ON TEXT MESSAGE
CAMPAIGNS
FEATURES:
•Fully Customized Loyalty Program
•Rewards Based On Visits Or Spend
•Unlimited Free Cards
•AutoPilot Campaigns
•Unlimited Email Campaigns
•1,000 Free Text Messages*
•Social Media Integration
•Search Engine Optimized Profile Page
•Free Customer Referrals
•Co-Ownership of Data
•Searchable Customer Notes
•POS Integration (If Desired)
•Unlimited Training & Support
•Dedicated Account Manager
•Free Online Educational Resources
FREE MONTH
*Additional texts 3.5 cents each, additional 10% fee for online Prepay loads
$229
VALUE
Go to sign up for your free month:
http://go.fivestars.com/free-trial
Try FiveStars for
one month free.
Let’s get this out of the way first.
3
4. Now, let’s get real.
ON AVERAGE,
50%-60% OF NEW CUSTOMERS
DON’T COME BACK.
4
5. % of Customers Who Don’t Come Back
Within Next 6 Months After A Visit
Small businesses
aren’t the only ones
with this problem,
even reputable
chains have issues.
58%
58%
61%
56%
53%
5
6. This is why a focus on customer
loyalty is so crucial.
The development and retention of profitable customer
relationships is VITAL TO THE HEALTH OF EVERY BUSINESS...
Companies need to be concerned with the future revenue &
profit streams associated with the ongoing satisfaction &
retention of their core, profitable customer bases. The
companies that FAIL TO RECOGNIZE THIS TRUTH overspend in
marketing to acquire & retain less profitable, or even
unprofitable customers and DO NOT SPEND ENOUGH ON
KEEPING PROFITABLE ONES.
6
7. So which customers are you focusing on?
New Customers Loyal Customers
63% of marketers think that
new customer acquisition
is the most important
advertising goal, but does
a focus on attracting new
customers really lead to
a more profitable business?
Let’s look at the numbers.
NEW
CUSTOMER
VIP
LOYAL
CUSTOMER
La Lune Sucree
Bakery - Cafe
NEW!
VISIT
US!
7
8. These guys
are your loyal
customers.
They account for about 20%
of your customers.[1]
[1] FiveStars Data Study
... and depending on the vertical,
loyal customers can account for up to
84% of total visits.[1]
But that 20% drives 80% of your
total revenue and 72% of total
visits to your business...
*People who have visited at least 10 times
52%
63%
69% 70% 71%
84%
8
9. Over their lifetime, loyal customers
spend 10X more.
New Customers Loyal Customers
NEW!
VISIT
US!
I love
@LaLuneSucree
lattes! #sogood
$ 10 $ 10 $ $ 10 $
VIP
LOYAL
CUSTOMER
La Lune Sucree
Bakery - Cafe
COME
VISIT!
SPECIAL
EVENT!
TEXT
PROMO!
$
NEW
CUSTOMER
Over 50-60% of
new customers
don’t come
back after their
first visit. [5]
50%
OFF!
SALE
Less than 20%
of daily deals
customers will
return and pay
full price for
items. [4]
New Customers
are also more price
conscious: the
probability of getting a
sale from a brand new
customer is 5-20%. [3]
Loyal Customers
have a greater lifetime
value: They spend more
over time and generate
more revenue.
The average
conversion rate
(actual sales) from
promotions sent to
new customers is
less than 1%. [1]
Because your loyal
customers know
your business, the
probability of making
an additional sale, or
upselling, is 60-70%. [3]
Loyal customers like to hear from
you: 65% want stores they frequent
to email them coupons and
promotions. [2]
NEW!
VISIT
US!
[1] KissMetrics, [2] Colloquy, [3] Marketing Metrics, [4] Rice University Study, [5] FiveStars Data Study
9
10. The most successful small businesses
get over 60 to 70% of their customers
coming back on a monthly basis.
So, this means you need to turn your
average customers into loyal customers.
10
11. We’re here to help you with that.
• 7 Steps to a Great Email Campaign
• 5 Rules of Text Message Marketing
• 10 Ways to Drive Word of Mouth, Online and Off
• Customer Loyalty ROI Calculator
• FiveStars Customer Loyalty Basics
12
20
28
36
38
Here’s what’s in the following pages:
13. Send an email
for Holidays or
Special Seasons:
January - New Years Day
February - Valentine’s &
President’s Day
March - Spring Break &
St. Patrick’s Day
April - Earth Day
May - Memorial &
Mother’s Day, Graduation
Season
June - Father’s Day and
Summer Break
July - Independence Day
& Wedding Season
August - Back to School
Season
September - Labor Day
October - Halloween &
Fall Season
November -
Thanksgiving & Black
Friday
December - Christmas &
New Years Eve
# 01 Make sure your email message
is thoughtful and encourages
an action
• When writing a good email message, you want to make
sure to keep it short and to the point.
• Use persuasion tactics, like time expirations,
exclusiveness, secret items or prizes, etc. to create a
sense of urgency. For example, ‘The first 100 customers
receive a free appetizer!’ plays on the customers’ fear of
missing out. But use these sparingly since urgency can
lose its effectiveness if done too often.
• Make sure you include a way to find you! Add addresses,
relevant phone numbers, and an email they can respond
to if they like.
• Most importantly, include a prominent call to action: what
do you want them to do and when?
13
14. # 02 Include a relevant picture
People are visual creatures, so make sure to add a picture or two to help illustrate the message you want your
readers to get. Photos increase the likelihood that your customers will click through your email, which means
more customers visiting your website, calling you for a reservation, etc. Some considerations to take into
account:
Image Source: Anthropologie
Also, be cautious about ONLY using pictures in your email. If a customer’s email doesn’t load the images, or
loads them too slowly, your customers won’t see any of your message, so be sure to always include some text,
even if it is at the bottom.
Source: Simple Relevance
•Keep images small so they don’t slow load
time on less advanced Internet
connections.
•Use images with people and faces in them.
•If you can, avoid stock imagery. It’s obvious
and makes your email look less personal.
And please, PLEASE don’t use clip-art.
•Finally, include a link in your images. People
expect to be able to click through to
something when they see an image.
14
15. # 03 Make sure your subject line is
eye catching and interesting
You have about 2 seconds to convince a
customer to open your email, or trash it. So you
have to make it grab their attention using
between 5 and 8 words.
47% of consumers make their decision about
whether or not to open emails from businesses
or nonprofits based on the content of the
subject line.
15
Source: Social Media Quickstarter
16. # 04 Some rules are meant to be
broken, but laws are not
CAN-SPAM Act
• Don’t use false or misleading header information.
• Don’t use deceptive subject lines.
• Identify the message as an ad.
• Tell recipients where you’re located.
• Tell recipients how to opt out of receiving future emails
from you.
• Honor opt-out requests promptly.
• Monitor what others are doing on your behalf.
Check out http://www.business.ftc.gov/ for all the details!
Things that will be marked as spam are lots of punctuation marks, excessive use of the word FREE,
misspellings, grammatical errors, and using all caps.
16
Source: Constant Contact
17. # 05 Schedule your emails at optimal
times and be cautious of the
number of emails sent per week
Most messages land in people’s inboxes in the
morning, which is why it is better to email in the
afternoon. That is when it will be more likely
noticed, opened, and clicked through.
Always remember: Quality over quantity. So
don’t send more than a couple a week! That way
your loyal customers will eventually be on the
look out for your emails since you send only the
best content.
Don’t have the
time to write up
emails and send
them to your
customers at the
right times? Let
us do the heavy
lifting.
• We populate and
enrich your customer
data
• We run optimized
marketing campaigns
for you
• We give you the
results in an easy to
understand format
Learn more:
http://fivesta.rs/
AutoPilotFeatures
17
18. # 06 Train your employees to ask
and make it super easy for
your customers to give their
email contact information
Try to capture the customer information
on your point-of-sale* or computer, it
will save you time in the long run.
Display a marketing table stand at your
checkout counter that tells customers all
the incentives they will receive for
signing up to your email list.
Top reasons people will sign up
for your email list: To receive
discounts and special offers
(58%), to take part in a specific
promotion (39%), or if they are
a regular customer (37%).
Source: Social Media Quickstarter
*You can use FiveStars to not
only capture your customers’
emails, but also their names,
phone numbers, notes about
their purchases, their birthdays,
and so much more. Send
targeted emails to your VIP
customers, as well as
reconnect with customers who
haven’t been back in a while,
with FiveStars Loyalty. We
integrate right on your point-of-
Source: Social Media Quickstarter
sale!
Check out
http://fivesta.rs/demoFIVESTARS
for more details.
18
19. # 07 Measure your success to
improve over time
Track how many people visit from your email by
including in your email message ‘Give email code
MOTHERSDAY to your cashier at checkout to
get your discount,’ and have your employees
tally them up. Some email marketing programs
give you open and click through rates; if so,
compare the results across your different email
campaigns. You may see patterns that will tell
you which subject lines and messages perform
better.
19
21. How does text messaging drive loyalty?
• Brings your best customers in the door immediately
• Customers prefer getting timely messages from
places they already go to, especially places they
frequent
• Text message promotions/ads can reach customers
throughout the day, they don’t need to be in front
of a TV or computer
• Good text message campaigns can compliment
your other marketing efforts
21
22. # 01 Write thoughtfully
• You only have 140 characters: Make them count!
• Always check spelling and grammar.
• Use abbreviations when necessary, but don’t over do it.
• Don’t text like your tween cousin. GR8 THX BYE!
• Make sure to include a call to action!!!
Visit Haagen-Dazs Palo
Alto for your Valentine’s
Day cake; order before
Feb 10th & get 14% off!
Call 650-555-5555 today!
Reply STOP to
unsubscribe
22
23. # 02 Send offers and reminders
Mobile Coupons/Promotions Sales Reminders/Special Events
Mokutanya Charcoal Grill
1155 California Dr: $0.50
Oysters from 6pm-8pm
only! No limit & while
supplies last, show us
this text! Reply STOP
to unsubscribe
Stop by Elle Boutique on
Burlingame Ave for our
semi-annual jean sale!
Show this text for an extra
10% off purchase!
Reply STOP to
unsubscribe
Win Back Lost/Lapsed Customers
We miss seeing you! Stop
by Annie’s Bakery before
Sept 12 and get a special
30% discount. txt OFF to
unsubscribe
With FiveStars AutoPilot features,
we sync your text marketing with
actual behavior–automatically.
You never have to worry about
planning out text schedules, we
handle it all for you.
23
24. # 03 Send texts at the right times
• Schedule and send your text messages at optimal times for
maximum effect
• Don’t send more than one text a week to prevent opt outs from too
frequent messages
Dinner Special 6pm-8pm Two Week Jean Sale
Mokutanya Charcoal Grill
1155 California Dr: $0.50
Oysters from 6pm-8pm
only! No limit & while
supplies last, show us
this text! Reply STOP
to unsubscribe
Stop by Elle Boutique on
Burlingame Ave for our
semi-annual jean sale!
Show this text for an extra
10% off purchase!
Reply STOP to
unsubscribe
Text sent: 4:30pm on
dinner special
Text sent: 11:00am on
first Saturday during
sale
24
25. # 04 Build your online presence
• Use text promotions to encourage visitors to your website
• Request Facebook likes and Twitter followers via text
• Send text to help promote social media posts or specials
Long day at the office?
Saba Cafe Caters! Visit
www.sabacaferwc.com
today to make your
order. Use code 123 for
1 Free Soda Ltr! Reply
STOP to unsubscribe
Like us on Facebook at
facebook.com/danvilleflam
ebroiler
and receive 15 % off your
entire order through
Feb 9th! Reply STOP
to unsubscribe
25
26. # 05 Prompt customers in store
• You only have 140 characters:
Make them count!
• Always check spelling and
grammar.
• Use abbreviations when necessary,
but don’t over do it.
• Don’t text like your tween cousin.
GR8 THX BYE!
• Make sure to include a call to
action!!!
TEXT
“SIGN UP”
TO
55555
TO GET
STARTED
26
27. Some rules are meant to be broken...
These are all general rules of thumb, but every business is different,
so feel free to cater to your customers’ wants and needs.
...but laws are not
Federal Communication Commission
• Basic guidelines here: http://goo.gl/0tfSF
• Telephone Consumer Protection Act here: http://goo.gl/b22am
By law, the customer has to give written consent to receive
texts, and you must have opt out option in message.
27
28. 10 Ways to Drive Word of Mouth,
Both Online and Off
28
29. 90% of consumers say they trust
recommendations from people they know.
70% of consumers trust other
consumer opinions posted
online.
29
Source: Nielsen Survey
30. So what does this mean for your small
business?
Your current customers, as well as potential customers who haven’t met
you yet, are talking.
Possibly about your business.
So let’s make sure more and more people are positively talking about
your small business.
30
31. # 01
Don’t get hung up on being
newsworthy, just be yourself.
Customers are more likely to share
what is at the top of their mind at
any given point of time. So a
product that is cool, or interesting
doesn’t keep conversation going
too far. Common products or
services are talked about just as
often if not more, so focus on
delivering the best service and
products you have.
# 02
Stay on the top of your
customers’ minds.
To stay top of mind and
mentioned in conversations, you
need to be where the people are
talking. Do this by printing your
business name and logo on your
napkins, cups, bags, etc. so when
your customers leave, your
business can still be on the top of
their mind.
31
32. # 03
Give customers a test drive,
and make it an experience
to remember.
You can’t say much about
something you’ve never tried.
People talk more often and more
easily about things that they have
experienced first hand. But, this isn’t
just handing out a sample of ice
cream. Provide a fun experience,
display complementary food or
beverages, or show how the
customer could use your product or
service in their everyday lives.
# 04
Provide conversation starters
through wearable or usable
promotional items.
Offering t-shirts, reusable bags,
sunglasses, koozies, or pens, etc.
allow your business name or logo to
be in places that people are talking
face to face. If you are clever, funny
or catchy text or images can
become conversation starters for
people.
31
33. # 05
Help customers get together and
learn something new.
Free dessert by mentioning us on
Twitter! Log into our wifi network
by checking into our Facebook
page! Receive a 15% off your book
purchase with a Foursquare check
in! These are all great ways to
encourage customers to share you
to their online friends.
# 06
Encourage the Yelp review
community and give feedback to
any non positive experiences.
Customers will spread the word
about bad experiences more
frequently and quickly than good
ones. So you may have to put in
some extra effort here. For
instance, make it easy to give
reviews on the spot by setting up a
small laptop right in your store.
33
34. # 07
Provide your customers
incentives to mention you via
their social networks.
The more people know about your
stuff and have good experiences,
the more they will talk about it.
Teach your customers how to style
an outfit, cook a 30 min dinner,
grow a herb garden, or whatever is
relevant to your small business.
Have in-store events or post video
how-to’s on YouTube and
Facebook.
#08
Implement a customer
rewards program.
There is nothing like watching your
points get closer and closer, and then
finally earning something free or a
big discount. Your customers will feel
the same and share their excitement
to their friends online and off.
34
FiveStars can allow your
customers to automatically
post to their Facebook when
they’ve earned their reward.
35. # 09
Get your best customers to be
your cheerleaders.
You know those customers that
are always mentioning you on
Twitter? Or checking into your
Facebook page? Engage,
recognize, and reward your most
frequent visitors (and most
talkative online) for being loyal to
you. These Facebook fans and
Twitter followers immediately
become part of your marketing
team.
# 10
Give your customers not just
great, but over the fence out of
the ballpark, grand slam
customer service.
People get good, or even just decent,
customer service everyday. It is only
the experiences that go beyond what
they expected that drive these
customers to joyfully it shout it to all
their friends and families.
35
39. How FiveStars increases loyalty
You give her a
reward because she
spent more money
in a shorter period
of time.
Lisa is a regular
customer who visits
once every three
weeks.
As she gets closer
to a reward, she
starts visiting more
frequently, on
average 12-44%.
When she’s just a
few points away, she
comes in once a
week and spends
more to earn points.
VISIT MORE FREQUENTLY INCREASE SPEND
39
40. Now she visits more
frequently AND
promotes your
business online.
She receives
targeted
promotions right to
her phone or inbox
based on her visit
patterns.
You hand out cards.
We handle your
marketing for you.
Have more time for
the things you love.
Lisa just shared a link via FiveStars.
June 15
Just got a FREE Latte
Cafe Venetia
www.cafevenetia.com
Get the FiveStars Hook
Up get: 1 Free Espresso
Drink
Like . Comment . Share
30 people like this.
Gracie
I WANT ONE!!
Like . Comment . Tuesday at 10:22pm
345 People saw this post
WORD OF MOUTH
It’s been a month since
we’ve last seen you, we
miss you! Come in to
Pinkie’s today with this text
& get a coffee on the
house w/your pastry
purchase. (Txt OFF to
unsubscribe)
ENGAGE
CUSTOMERS
Lisa is so happy that
she registers her
card online and
connects with
Facebook.
ROI
40
42. We help you develop a customized
loyalty program.
Earn points when you spend $10 or more,
10 points gets you $5 off!
Buy 10 subs, get one free!
10 Points = Free Coffee
20 Points = Free Sandwich
50% off every 5th visit
42
43. A well-structured loyalty program
can lift customer visits
by over 20% automatically.
Up to 44%
increase
in customer visits
Nightlife
Retail
Coffee & Tea
Fast Casual
Restaurants
*Average visit frequency increase for
FiveStars merchants by vertical
43
44. With Prepay, drive increased spend
from your best customers.
Customers spend
more per month
since spending a
Prepay balance
doesn’t feel the same
as spending cash.
$30
$20 80% Customers spent
more per month
with Prepay and
loyalty program* PREPAY
& LOYALTY
$16
LOYALTY
ONLY
NO LOYALTY
NO PREPAY
*FiveStars data study at large QSR chain
44
45. The customer
loyalty data we
help you collect
will also improve
your customer
service.
45
46. Get even more customer details
with smart data collection.
Congrats on earning a point at
BB’s Bakery! Reply to this text
with your birthday (MM/DD/YY) &
you’ll get a free cupcake on your
big day! txt OFF to unsubscribe
YOU COLLECT PHONE
NUMBERS AT THE POS
WE COLLECT BIRTHDAYS
& EMAILS AFTER THE SALE
Welcome to fivestars.com, the
rewards program of Armadillo
Willy’s. Reply w/ your email to
register and get bonus points! txt
OFF to unsubscribe
46
47. With AutoPilot, we automatically sync
marketing with actual behavior.
GET NEW CUSTOMERS TO
COME BACK A 2ND TIME
DELIGHT YOUR REPEAT
Delight your loyalists
Thanks for coming to
Annie’s Bakery today!
Come in again by Sept
12 and get 15% off! txt
OFF to unsubscribe
CUSTOMERS
You’re one of our most
valued customers at
Annie’s Bakery! Come
in by Sept 12 and get
10% off! txt OFF to
unsubscribe
We miss seeing you!
Stop by Annie’s Bakery
before Sept 12 and get
a special 30% discount.
txt OFF to unsubscribe
REVIVE YOUR LAPSED
CUSTOMER BASE
We want you back!
Stop by Annie’s Bakery
before Sept 12 and get
a special 50% discount.
txt OFF to unsubscribe
50-60%
of new customers
don’t return
Visit rates
increase 25%
when you send
promotions to
your regulars
70-80%
of second time
visitors return
Every 30 days
of not visiting,
the likelihood a
customer will
return drops
50-75%
Visit rates
increase 3-4x
from lapsed
customers when
you send the right
promotion
WIN BACK YOUR AT RISK
CUSTOMERS
47
49. Show off your rewards, and get
found in search results.
49
50. Track your program results online
or get them directly in your inbox.
50
51. FiveStars pulls everything together
to give you truly smart marketing.
Search Engine
Optimized
Profile
Social Media
Integration
Rewards
Program
Customer
Recognition
Prepay
Automated
Customer
Engagement
Smart Data
Collection
51
52. Get your customers hooked with FiveStars.
You hand out cards. We take care of the rest.
52
53. ON AVERAGE YOU’LL SEE:
20% INCREASE IN CUSTOMER
VISITS PER MONTH
650 OVER
MEMBERS PER LOCATION
UP TO
10x
RETURN ON TEXT MESSAGE
CAMPAIGNS
FEATURES:
•Fully Customized Loyalty Program
•Rewards Based On Visits Or Spend
•Unlimited Free Cards
•Prepay In-Store & Online*
•AutoPilot Campaigns
•Unlimited Email Campaigns
•1,000 Free Text Messages*
•Social Media Integration
•Search Engine Optimized Profile Page
•Free Customer Referrals
•Co-Ownership of Data
•Searchable Customer Notes
•POS Integration (If Desired)
•Unlimited Training & Support
•Dedicated Account Manager
•Free Online Educational Resources
FREE MONTH
*Additional texts 3.5 cents each, additional 10% fee for online Prepay loads
$229
VALUE
Promo Code: ULTIMATE2013
Call us at 860.578.2770 or use your code
online here: http://fivesta.rs/1cVEULo
Try FiveStars for
one month free.
In case you missed it.
53