Merchants who maintain frequent communication with loyalty program members see three times more customer visits than those that do not send any communications, according to a new survey from SpotOn.
The survey results point to a direct correlation between communication and increased customer activity.
Increased Customer Visits
Small businesses that send loyalty members two to three communications per week see three times more customer visits than businesses that do not send any communications. Merchant sales reportedly increase anywhere from 15% to 50% as a result of campaigns. The data also found that while consistent communication is good, there is a tipping point that can lead to diminishing returns. Businesses that send more than 13 campaigns per month see reduced customer visits.
Heightened Customer Interest
Campaigns sent to loyalty members highlighting a promotion see an average open rate of 41%, compared to the 19% industry average open rate for email marketing.
Customers Favor Deals To Email Newsletters
Marketing campaigns that include a redeemable offer see open rates more than 20% higher than non-promotional emails, such as newsletters or announcements.
“This new data underscores that having a loyalty program doesn’t mean your work is done,” Doron Friedman, co-founder of SpotOn, said in a release. “Businesses that supplement their rewards program with consistent communication can amplify customer visits and dramatically impact revenues.”
More than 60% of SpotOn merchants have already sent at least one campaign.
“We hit a record day in sales after trying our first campaign several weeks ago, and we’ve already increased year-over-year sales 15% to 20%,” said Bruce Chiang, owner of M&H Café in Davie, Florida.
Santos Chavez, General Manager of Coast Car Wash in Long Beach, CA added: “It’s like we’re married to every customer. We send deals to loyalty members twice a week, and typically see 900 to 1,000 redemptions.”
The survey findings are based on user data since February 2014, when SpotOn launched its Campaigns feature which enables merchants to send real-time, digital offers to invite customers back. More than 2.5 million consumers currently use SpotOn’s loyalty card or smartphone app to obtain rewards at approximately 6,000 businesses nationally, including single-location merchants as well as large chains like Chick-Fil-A and Denny’s.