How to Make a Loyalty Program Work

Over 80% of the population belongs to some form of loyalty program. The average US household actively participates in 6.2% loyalty programs, (source: Colloquy, 2009). Whether it is your card that is swiped at the grocery store to get weekly discounts, the airline miles you accumulate when you travel, the points you receive each time you rack up your credit card, chances are you belong to a variety of loyalty programs.

But does being a part of a loyalty program make you more loyal to that business? Some say “yes”, but most say “no”.

Loyalty programs can be part of your comprehensive client or patient relationship strategy. But having a loyalty program won’t make your clients loyal. Client and patient loyalty comes from the value your product or services provides and the emotional connection your customer has with your business. A loyalty program can assist in creating value and the emotional connection.

Often times, businesses do not put enough thought or strategy into their loyalty programs and they end up looking like everyone else’s, rendering little or no meaning to the client or patient. You want your loyalty program to be more than just a “rewards” program. It should add value to your product and service.

The underlying objective of a loyalty program, (and how they were originally used), is to accumulate information on buying behavior. But beyond this valuable information, other objectives of your program should be to:

Increase buying frequency
Increase transaction size
Acquire new profitable clients
Retain the most profitable clients

The focus with any loyalty program needs to be profitability. The key to loyalty marketing is relevance to the consumer. The size of the reward is not as important as its perceived value. Consider these elements as part of your loyalty program:

Surprise Rewards
Special Treatment
Special Recognition

Your program needs to have teeth rather than it just being bigger, better, or easier. That is the norm and what your client or patient expects today. Most loyalty programs are now commodities. There is no differentiation between them for them to be meaningful to the consumer.

Think in terms of client/patient “experience” rather than “tangibles” when crafting your loyalty program. This will keep your program from looking like everyone else’s.

Here is a step-by-step outline of basic fundamentals in creating a meaningful, value-driven loyalty program.

Outline your positioning. What do you stand for? What do you offer? How do you want to be perceived?

Determine the target market. Who is our highest margin client/patient? What other targets should we consider?

Determine the program benefits. Make sure these align with the overall client/patient experience you want to create. Benefits can be cash/products or special privileges or a combination.

Program details. How will clients/patients enroll? How will they earn rewards? How will they redeem rewards?

Outline your communication strategy. How will you get the word out there? How will you keep current and potential clients informed of your program?

Evaluation and Measurement. How will success be measured and over what time frame? How will the data be captured? How will the data be analyzed?

Twitter: Facts and Tips

Twitter at its most basic level is a real-time information source. Twitter has experienced a phenomenal growth rate over the past few months. With the ability to get instant information about world events such as the earthquake and tsunami in Japan, the royal wedding of Prince William and Kate Middleton and the breaking news story of Osama bin Laden, it’s no wonder why so many people are signing on. We want to be able to get information and get it now.

Here are some numbers to consider (as reported by the Huffington Post):
Twitter handles a billion tweets every week.

In the past year alone, the average number of tweets per day has nearly tripled from 50 million to 140 million.

Tweets generally spike during a significant cultural event, and recent figures have been staggering. On March 11, the day of the Japan earthquake and tsunami, Twitter users exceeded the average daily tweets by 37 million–that’s 177 million tweets in a single day.

Also surging is Twitter’s membership. 572,000 new accounts were created on March 12. For the past month, the average daily sign-up rate has been 460,000 new accounts, and Twitter has also marked a 182% increase in the number of users tweeting from mobile devices in the past year.

You’re probably thinking, well I’m not Osama bin Laden (thank God) or Prince William so why should I care about this?

It’s all about being where people are. If they are on Twitter, you may want to be there too.

The average Twitter user follows 100 people. They typically are very community based in their following and the information they are looking for. While the global event numbers are staggering, and information about these events something Twitter users are interested in, it isn’t the main reason they use the platform. This information is important to you as a small business.

One of the best things you can do as a small business is figure out a way to tie into these global events by linking yourself to the subject or topic that is being searched. Your information will come up to your followers searching for this information.

Twitter has some unique features enabling you to target and get followers in your market area. This is how you want to use it. You don’t want to amass followers from all over the world, unless that is where you target market is.

Here are some basic Twitter starting points:

Make sure you complete your entire profile so people know what you’re about and can get to know you better.

Be sure to include a photo. People want to see what you look like.

Use Twitter Search to see what is being said about your topics of expertise. This will give you an idea of what people might be searching for and how you might be able to help with information you have.

Share interesting information and any interesting links that may be happening in your community.

Be sure you are not always just promoting your business. That is a turn off. Instead figure out ways you can provide helpful information that makes you the expert and trusted advisor. Your followers will be more drawn to you by you showing your human side than if your tweets are self-serving.

The biggest tip of all is not to be afraid to start tweeting and don’t let the number of tweets you see overwhelm you. You do not have to read or answer every tweet but you do need to participate to make it work.

Ways to Use QR Codes to Market Your Business

To Provide Information

QR Codes are extremely efficient at providing information within seconds.

The potential to use them to provide more detailed information is endless. Consider these ideas:

Only have limited ad space? Add a QR code to provide further in depth information about your product or service or more details on your special offer.

Use them on your business cards to give your clients an easy way to import your contact information into their cell phones. Don’t forget to add all your social media connection information as well (Twitter, Linkedin, Facebook, YouTube, etc.).

Have a store with products? Consider including QR Codes throughout the store to provide more information on those products clients frequently ask questions about.

Use QR Codes to give your clients access to any Free Reports or other valuable information your client needs to aid in their purchase decision making process.

To Motivate to Take Action

Use a QR Code to add that special punch that gets your client to take action. After all, they are fun. Take advantage of this novelty and make it exciting for your clients to take action on your offer, register for your event, take a survey, etc. by offering them something more with the QR Code.

Drive Traffic to Your Website

Create a QR Code that sends users directly to your website. Put this code on everything you print so your clients can instantly access your website. Consider creating different codes for different pages of your site.

Uses are Limited to Your Imagination

Here are some other quick ideas–

Use them to run a contest.

Use them for storefront displays. QR Codes are available 24/7. When you are closed, they can be working for you.

Make a skin for your laptop with a QR Code containing your contact info so people can connect where ever you happen to be using your laptop.

Put QR Codes on your promotional items–t-shirts, jackets or any item where the
imprint area is large enough.

Use These Event Secrets to Build Loyalty and Get Business

Client events can be a terrific way to foster relationships, attract referrals, and build your business at the same time. An event provides a perfect atmosphere for you to engage with clients, patients and prospects in a more meaningful, comfortable, and fun way.

When I worked in the hotel industry, we would host these events annually. They were big. Lavish in food, drink, decorations, and prizes! Our clients loved them. On the night of the event, our hotel would be packed with guests, and if the Fire Marshall would have walked in, we would have been in serious trouble! A lot of hard work and months of planning went in to these client appreciation parties but it was well worth it. We had the opportunity to show off what we did well, and be with our clients in a more relaxing, exciting, and non-selling way. After the event, we would receive all kinds of phone calls and thank you cards and many of those calls resulted in more business!

I realize many of you are not in the hotel business with access to a venue, chef-prepared fabulous food and the staffing to handle all the set up and service the guests, but you can still have your own highly successful client or patient events if you consider these useful event secrets.

Events not only reinforce the bond with your current clients and patients, but can also be a source of new clients and patients. Allow your clients to bring a guest or two to the event. Typically those guests will be of the same demographic as your client. These prospects should be very valuable to you because by allowing your client to invite them, they are sending the message to their friend that they value your expertise, they trust you and they are willing to let them get to know you.

Events offer the opportunity for your staff to get to know your clients and patients too. Get your staff involved in helping with the details. They play a variety of important roles in your business and when your team can bond with your clients that makes the relationship you have them even stronger.

Your event doesn’t have to be lavish like the hotel events I described above. Hosting an informative luncheon in a smaller group setting may work just as well. It really depends on what your business is as to what kind of events will work best for you. The important thing is to keep them congruent with your business and provide an atmosphere that is open, reassuring and low-key for your guests. In the end, you want your clients feeling good about you and talking to others about your events and how valuable, or fun, or entertaining they are.

You really don’t need a specific reason to have an event; simple appreciation will do. What’s most important is providing an atmosphere where your guests can enjoy and relax and get to know you better.

Following up is a critical step to any event. Be sure to send a thank you note or make a phone call to your clients. Better yet, take photos at the event and send their photo with a handwritten note. Everyone loves to see themselves in pictures. Don’t miss this opportunity to reach out to your clients or patients once again on this personal level. This will set you apart from the competition and keep you in the forefront of their mind.

Top 5 Client/Patient Profiles to Avoid at All Costs

Sometimes no amount of “client/patient relationship management” will do the trick. You’ve bent over backwards, killed them with kindness, brought them the proverbial “apple” and nothing seems to work. Maybe they just aren’t worth all that coddling. One of my mentors, Dan Kennedy has a saying he uses frequently and it goes something like this–”If I wake up thinking about you three days in a row and I’m not sleeping with you, you have to go!” He uses this reference mainly when he is talking about employees but this could be applied to any relationship. If your clients or patients are consuming your thoughts, due to the inability to satisfy them, they are most likely also affecting your health, that of your employees, and the bottom line in your business.

Here are the Top 5 Client/Patient Profiles You Should Avoid at All Costs and if you currently have them, they need a good firing:

The Nasty One
This client is verbally and/or physically abusive. OK, so maybe they had a bad day, you came in their sights, and they let you have it. You can forgive them once for this, with the most sincerest apology from them. But, if this behavior becomes the norm rather than the exception, they need to go. No one should have to tolerate this type of treatment. It causes undo stress to everyone whose path they cross and has a way of permeating and affecting unrelated people and projects.

The Nitpicker
There is nothing that seems to satisfy the Nitpicker. They are chronic complainers. They make constant changes to what they originally agreed to. They’re overly demanding and expect you to drop everything to take care of their needs. They will pick apart your invoices bit by bit, even though they knew in advance the costs involved. Another high stress level client. Bu-Bye.

The Time Sucker
This is the one that likes to rob you or your employees of precious time with idle gossip, validation of their latest brainstorm, or professional advice without any consideration. They schedule meetings, then cancel them. They call repeatedly throughout the day with each new idea or request. Time is money. We all have the same amount each day. Time wasted is money lost. These clients and patients need to be cut off.

The Slow Payer
The client that consistently pays their bills slow is a drain on your time and affects the cash flow in your business. Unfortunately, if you typically invoice after the transaction, the only way to find out about The Slow Payer is to actually do business with them. But once you do, they gotta go, or they gotta pay in advance.

The Bargain Shopper
The Bargain Shopper is a little like the Time Sucker since they waste an incredible about of time. They will have you quote on something, pit you against a competitor, and continue to try and beat you down on price. Or they simply use you in the bidding process with no intention of giving you the business. If you do end up getting this business, the margins will be so low that the time you invested will not be compensated. Time would be better spent prospecting for your ideal client. No business needs bottom feeders, but there are plenty of businesses out there that will take them. Very few businesses can be sustained on the lowest price model. I say let ‘em go.

Of course, there are other less severe types of clients or patients that may not be a good fit for your business. No business can be everything to everyone, nor should it be. By avoiding and/or firing at least these Top 5, you will be in a much stronger position and give your business the room to grow with the right client or patient.

The Key to Building Customer Relationships-Your Employees

Let’s face it. We’ve all been victims of bad customer service. For me, there are businesses I no longer patronize because of the poor service I received. How about you? Are there places you no longer patronize? Usually though the reason to stop going isn’t because of a one-time nightmarish customer service incident but because of several occurrences that culminate in finally saying, “Uncle, I give. I just can’t spend any more of my money here.”

In most cases the problem isn’t simply that the individual employee doesn’t understand the right way to handle clients, often times it is more than that. So how do you make sure you don’t end up having employees of your own losing business for you?

The first step is selecting the right people for the right position. Anyone you have in a customer service role (and there are not many positions that in some way or another don’t interact with the customer) needs to have extremely competent interpersonal skills besides the functional and technical skills to get the job done. Consider this when hiring. You can always teach the “how to” part of the job but it is very difficult to teach the “attitude.” Sometimes it’s difficult to know if a candidate has the right attitude.

To help make this determination:

• Be sure to outline the most important job requirements not necessarily the technical aspects but those that are critical to the position as it relates to the customer.
• Craft questions for the interview based on situations the candidate may or will find themselves in.
• Enlist several people to help with the interview process to get an objective view.
• Have all serious candidates (after you weed out those that don’t qualify) take some sort of personality assessment. You can find some online for free. There are also other more in depth tests such as Kolbe for a fee.
• After you have found the ideal employees, it’s time for the second step, developing and motivating your employees. This step is actually harder than the first step. I believe this is where many businesses fail because it does take work to do and to maintain. With step two, it all comes down to communication and the various ways we should be communicating in our business.

In order to create a customer relationship centric environment, it is paramount to:

• Provide step-by-step procedures on everything you do on a regular basis in your business
• Hold regular meetings to offer training and coaching in customer service and procedures
• Develop a system to measure performance
• Be sure to follow up exemplary performance with rewards based on what each individual’s preference for reward is (some like cash, some like time off, some like awards)

By following this two-step process for creating the right customer relationship environment, you will not only improve the retention rate of your customers but you will also get more business from them. It will also give you a highly competitive advantage in the marketplace.