Dont Forget About Emotion

Hi Everyone,

It's easy to get so involved in the intricacies and technicalities of loyalty programmes that the most important part - the human aspect - gets neglected.

The technology involved is a marvellous tool - without it, loyalty programmes as we know them would not be possible.

But we must remember that loyalty (and its opposite, the desire to simply walk away) are both intensely human emotions. And, unless the programme generates the right feeling in people, it won't work.

That’s why programmes that “actively work” for the customer by impressing them every week are successful and those that don’t involve emotion but instead juts rebate 1% are unsuccessful.

Cheers

 

 

 

 

Finbarr Malone M.Sc. Hospitality

Director

T (353) 1 485 3203

F (353) 1 5261012

M (353) 87 2368956

E finbarr@customerconnectireland.com

 

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Fishing

For me loyalty systems are like fishing with a net that covers an attentive market. Running your business without loyalty is like fishing with a single line and hook. You have no coverall net. Just one bite at a time.

Regards Finbarr

Sent from my phone.

Miserly

Just thought this was good…

 

Leaving a plush night club one evening, a miserly gentleman walked past the doorman without tipping him. Nevertheless, the doorman helped the man into a taxi with a flourish and said pleasantly.

"By the way, sir, in case you happen to lose your wallet on the way home, just remember that you didn't pull it out here."

 

 

 

 

Finbarr Malone M.Sc. Hospitality

Director

T (353) 1 485 3203

F (353) 1 5261012

M (353) 87 2368956

E finbarr@customerconnectireland.com

 

 

Butchers Loss leaders? Are You MAD!!!

Hi All,

I’m constantly astounded at great craft butchers I see offering premium product at a little above cost. Let’s have a look at the consequences of this;

                                Positives                                                             Negatives

1.       Gets punters in                                                 No money made

2.       Gets sales up                                                     Reduces your overall gross margin

3.       Builds footfall                                                    Increases labour costs

4.       Competes with the supermarkets            Removes focus away from what your specialist at

5.        I have to do something!                               Only offer discounted product to people who are spending with you.

The difference between having a general offer to everyone and having an offer to your own loyalty customers is that it costs you less on your margin because;

1.       Its only your punters getting the offer

2.       You’re not giving the offer to “Offer Hawkes” these are margin eaters

3.       Why should you have an offer open to a passerby who won’t ever buy from you again?

Finally, Isn’t it better to save all of your discounting ability for the people who are with you regularly. If you decrease the available audience for an amazing offer from everyone to just your customers then you can  increase the value of that offer to your customers

Any questions call me anytime on 0872368956. Any comments just let me know…

Sincere Regards

P.S. please forward this on to anyone who you think might benefit.

Finbarr Malone M.Sc. Hospitality

Director

T (353) 1 485 3203

F (353) 1 5261012

M (353) 87 2368956

E finbarr@customerconnectireland.com

discounting madness-why take off 20% when you can just take off 2%

Hi Everyone;

Why would you take 20% off your margin when you trying to shift selected products just to shift stuff with short dates or just to try and increase footfall when you could just offer double points or triple points on the same products and get just the same sales boost?

Based on a 1% rebate (which as those of you know can only ever end up at a maximum of 0.64% using our unique guidance). Offering double points on a product that you want to shift will cost you 2% off the product margin when you offer double points. Yet with a good loyalty scheme in place your customers will respond to a double points promotion just as quickly as a 20% off promotion.

2% or 20% I know which margin cut I’d take.

Regards  

 

Finbarr Malone M.Sc. Hospitality

Director

T (353) 1 485 3203

F (353) 1 5261012

M (353) 87 2368956

E finbarr@customerconnectireland.com