Loyalty Cards Systems – Beware, Some Should Be Avoided



Get The Edge Marketing on theedgemarketing.com. Loyalty Cards Systems – Beware, Some Should Be Avoided topic will increase your understanding on The Edge Marketing. We at theedgemarketing.com only provide news, articles, information in The Edge Marketing. The Edge Marketing at theedgemarketing.com provides the most up to date news and articles. If you have questions please do not hesitate to contact us.

Recently, I discussed a loyalty card system with a vendor who was selling quite a number of his systems to restaurants. I was shocked to discover the lack of detailed information that this vendor catered for, and the opportunities the system he provided squandered.

The way their scheme works is that whenever a restaurant customer is presented with a bill, they provide their loyalty card to the waiter, who swipes it at the till. If the customer has accumulated sufficient points from previously purchased meals, he/she is awarded a rebate on the price of the meal.

This is simple price discounting based on repeat purchases. No other marketing activities are carried out - either by the loyalty card company, or by the restaurant - to proactively influence the number of times the card holder frequents the restaurant - they rely solely on the meal discount to attract customers back for more meals.

This is a system that is woefully underexploited.

I asked about the level of detail that was transmitted to the card site - and was once again disappointed - only the total meal cost was transmitted. The customer profile that was being created was extremely superficial. My view was further confirmed when I asked whether the 'significant other', or other family members' details were collected. Once again, no.

The key things wrong with this service offering:

  • Lack of transaction details. These days, with broadband communication and high volume data disks, there is really no excuse not to collect data at transaction level.
  • The simple act of recording the bill at individual meal item level opens up a wealth of information:

    • Number of main meals - if there are children in the family unit (provided during signup), analysis of the bill will provide a clear indication of whether the whole family always eats out, or if on occaision the parents treat themselves to a quiet night on their own - possibly anniversaries, or birthdays, or just a regular night away from the kids.
    • Types of meals - red meat, fish, vegetarian - which could be used for special promotions
    • Beer, cheap wine, or expensive wine drinker

    If you had the above information at your finger tips, who would you rather focus your marketing efforts on to get to come back to your restaurant - the family of six that buys budget meals, and drinks beer and soda, or 3 couples ordering starters, high-priced meals, drinking quality wine, and finishing off with expensive liqueurs?

  • Even recording the value of the tip could be useful. A usually-generous tipper who awards a low tip (possibly to a new waiter) is giving a clear indication of a bad experience. This information could be used by the restaurant owner to contact the customer within a few days to establish what was wrong with the meal or service, and to invite the customer back with an offer of a generous discount for the next meal.
  • Not getting the details of the 'significant other' and details of any children prevents marketing to special days. Its pretty pointless merely getting the birthday of the cardholder - it's not that compelling to get an SMS or postcard suggesting that you treat yourself to a special night out. It's far more effective to receive a prompt to take your significant other out for that special meal. Children's birthdays are another opportunity to encourage the family to come out to the restaurant for a slap-up meal -but this is only possible if you take the trouble to collect the data...

Hopefully the above points have provided some ideas as to how basic transaction data can be used effectively by an information analyst or direct marketer.

If you are approached by a vendor to implement a loyalty scheme, or you are thinking about calling for proposals from scheme suppliers, make sure that you investigate the level of data detail that each supplier collects.

If data is recorded at line item level - i.e. product ID, quantity, and price - then you will have a wealth of sales data that you can start using for a variety of campaigns. If they only provide you with a bill total per meal, then I suggest you look elsewhere for a more effective loyalty card scheme.

© 2005 Intellinova (Pty) Ltd. - All Rights Reserved This article may be reprinted, provided it is published in its entirety, includes the author bio information, and all links remain active.



Betting Systems - Great Gambling Systems. - Gambling Systems And Strategy Tips For Online Sports Betting, Internet Horse Racing & Casino. New Arbitrage Betting Software.
The Ultimate Rotator Cuff Training Guide. - Physical therapist reveals how to fix rotator cuff pain and shoulder stiffness.


Article Index: | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | 42 | 43 | 44 | 45 | 46 | 47 | 48 | 49 | 50 | 51 | 52 | 53 | 54 | 55 | 56 | 57 | 58 | 59 | 60 | 61 | 62 | 63 | 64 | 65 | 66 | 67 | 68 | 69 | 70 | 71 | 72 | 73 | 74 | 75 | 76 | 77 | 78 | 79 | 80 | 81 | 82 | 83 | 84 | 85 | 86 | 87 | 88 | 89 | 90 | 91 | 92 | 93 | 94 | 95 | 96 | 97 | 98 | 99 | 100

Advice
Home Business
Technology
Online Advertising
Motivational
Internet Marketing
SEO Help
Online Games
Science Articles
Happiness

More Articles:


1. How Important is Your Marketing? By Charlie Cook
Bob called last week from Phoenix, Arizona with some stunning news about his web site. He first contacted me in the fall of 2003. He had a web site that was helping him generate a healthy income but he sensed he could be doing even better. He wanted to get more visitors to his web site and get more of them to contact him about his retail liquidation services.Are you interested in getting more prospects to your web site and prompting more of the…

2. SWOT Analysis -- Strengths, Weaknesses, Opportunities, and Threats By Bobette Kyle
When conducting strategic planning for any company -- online and/or offline -- it is useful to complete an analysis that takes into account not only your own business, but your competitors' activities and current industry happenings as well. A SWOT is one such analysis.Completing a SWOT analysis helps you identify ways to minimize the affect of weaknesses in your business while maximizing your strengths. Ideally, you will match your strengths a…

3. Breaking the Ice on Promotional Items
There are numerous ways to market your business. The most popular is with the use of mass media. However, this is a very exorbitant option. A page in the broadsheet may mean a notable sum. A 60-seconder ad in radio or television is even more taxing. To keep away from expensive advertising and marketing, there must be an alternative that can result to same effects but will cost us less. One of the good alternatives is the use of promotional items.…

4. Eight No Cost Ways to Market Your Business By Denise O'Berry
Are you trying to promote your business with a tiny marketing budget? Opportunities are plentiful for low or no cost marketing. Here are a few that won't cost you a cent. Publish articles about your specialty. "How-to" articles are always welcome. Ensure you include your contact information. Write letters to the editor of publications your target market reads. Get involved in an organization or community project. Build strategic alliances wi…