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The Ultimate Guide to 
Customer Loyalty Success 
Your free month coupon is inside :)
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
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
Now, let’s get real. 
ON AVERAGE, 
50%-60% OF NEW CUSTOMERS 
DON’T COME BACK. 
4
% 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
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
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
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
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
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
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:
7 Steps to a Great Email Campaign 
12
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
# 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
# 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
# 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
# 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
# 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
# 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
5 Rules of Text Message Marketing 
20
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
# 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
# 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
# 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
# 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
# 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
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
10 Ways to Drive Word of Mouth, 
Both Online and Off 
28
90% of consumers say they trust 
recommendations from people they know. 
70% of consumers trust other 
consumer opinions posted 
online. 
29 
Source: Nielsen Survey
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
# 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
# 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
# 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
# 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.
# 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
Customer Loyalty ROI Calculator 
36
This link takes you to the live calculator: 
http://fivesta.rs/loyaltyROI 
37
FiveStars Customer Loyalty Basics 
38
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
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
How does FiveStars do all this? 
41
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
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
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
The customer 
loyalty data we 
help you collect 
will also improve 
your customer 
service. 
45
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
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
Drive more word-of-mouth 
with social media. 
48
Show off your rewards, and get 
found in search results. 
49
Track your program results online 
or get them directly in your inbox. 
50
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
Get your customers hooked with FiveStars. 
You hand out cards. We take care of the rest. 
52
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

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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:
  • 12. 7 Steps to a Great Email Campaign 12
  • 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
  • 20. 5 Rules of Text Message Marketing 20
  • 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
  • 36. Customer Loyalty ROI Calculator 36
  • 37. This link takes you to the live calculator: http://fivesta.rs/loyaltyROI 37
  • 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
  • 41. How does FiveStars do all this? 41
  • 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
  • 48. Drive more word-of-mouth with social media. 48
  • 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