First of all, the Loyalty system is aimed to increase average ticket amount and customer retention rate. Going further, one can solve more focused tasks, such as advertising channel effectiveness evaluation, novelties promotion or working with a narrow customer sector. Let us examine what instruments we have in Bakeit.app and how to use them.
Discounts
Discounts are the simplest instrument of the loyalty system. One can reduce the ticket total or the price of some items in the ticket. Discounts have a wide setting range based on application time, day of the week and even client category. One can read in more detail:
Manual discount – It is applied manually by the cashier, e.g. when a customer shows a pension certificate. With this type of discounts cashier machinations are possible. We recommend using our embedded video surveillance system.
Automatic discount – Applies when the specific conditions are met. For example, discount for certain product types, or on the ticket total when reaching a certain amount.
Discount on the ticket total – a ticket total is reduced by a specific amount regardless of the fact what products are included in the ticket.
Price substitution– actually, it is a substitute of the ordinary discount, it is just that a specific price is set for a product. E.g., “all big pies per 20 Euro ”. The central disadvantage of discounts is that they are detrimental to business profitability. The more discounts one has, the less profit one gets.
Promos
Promos can imply user remuneration for some activities, deviating from the customary consumer behavior. Promos examples:
Product set – this type of promos can be realized in the format “2+1” (buy 2, get third for free), product set for a reduced price (coffee + croissant), business lunch format (salad, soup, second course for a fixed price) and many other. If a set of goods is a big one, we are talking about an average ticket increase. If the offer is just a profitable one for the market, we increase the client retention rate.
Gift counter – we all know about the format of a 6th cup for free or a 5th set menu for free. This instrument is fully aimed at the client retention rate increase.
Increased bonuses – we remember that discounts are detrimental for business profitability. Bonuses are a much milder instrument. If you use a bonus system in the chain you will be able to change an accrued bonus % for the items you are interested in. For example, “Double bonuses for a product of the day”.
Promos are a more complicated instrument than discounts. For a discount a yellow price label is enough, while for promos advertising materials and personnel training are needed, and, above all, understanding of what task you solve by a specific promo. But having mastered these instruments one will get much higher results than using discounts.
Bonus program and customer base
Bonus program provides both personalized marketing and direct business losses reduction caused by discounts. Accumulating bonuses clients identify themselves in this or that way – information about average ticket amount, favorite products, visit frequency of your customers is available. It is important to establish motivating conditions for customers in order to increase the average ticket and client retention rate.
Client categories – the entire customer base can be divided into categories, and for each category certain points accrual conditions can be set. For example, 3% for ordinary clients and 5% for VIP clients.
Gift certificates – possibility both to sell and raffle off cards of various par value in different events. When showing a card or giving a number a seller can write-off all or a part of points in payment for a current purchase.
Reports
Both in day-to-day operations and when developing loyalty system the following reports will be useful:
Client purchase report – who made more purchases, how many bonuses have been spent, and how many bonuses have been accumulated for a certain period.
Client card – all purchase dates, favorite products, bonuses history.
Discounts report – what discounts for which period were used more often than others, how much money you spent on them.
Losses control – list of clients who did not come for 7/14/28/56 days since the last purchase.
Customer base dynamics – the list of new clients created for different periods of time.
Franchising and chains
If you are working in a chain and you have division into partner account and personal accounts, the following articles will be relevant for you:
Master Assortment – assortment should be “interlinked” so that “cappuccino” in the franchisee’s store and your shop stood for the same product.
Creating promos for the entire chain – one can create a promo in all franchisees personal accounts simultaneously or only in selected ones. Also one can assign different rights for editing promo conditions.
Reports on chain promos – it is important that a promo is not only created but also its performance is evaluated in the chain. What cities are more successful and which cities fail.