Loyalty marketing may be the only marketing you ever need to do. Experts agree that loyalty marketing is one of the most effective and efficient froms of marketing. With the rapid growth of social media, it is more relevant than ever before for small businesses. Our guide to loyalty marketing will detail: 1. Data from experts on loyalty marketing and the results that it achieves 2. Key drivers of customer loyalty 3. A framework for measuring returns from your loyalty program 4. Practical tips for using loyalty marketing to increase your sales

1. Loyalty Marketing Is the the
Loyalty Marketing is
Only Marketing You Need
Only Marketing You Need

2. Experts agree that loyalty the most
effective and highest return marketing
Customer loyalty is the single most important driver
of growth and profitability.
HARVARD BUSINESS REVIEW
Retailers with loyalty programs, on average,
are 88% more profitable than competitors
who do not.
DELOITTE RESEARCH SURVEY
It is 6 to 7 times more to acquire a new
customer than to retain an existing one.
BAIN & COMPANY
2

3. Loyalty marketing is more relevant
today than it ever has been
• Your biggest asset is your existing customer base
and foot traffic
• Data shows that loyalty programs can increase
customer visits by 20 percent or more
• With social media, each of your customers can
now share your brand with hundreds of others
• Technology can now automate most of your
loyalty marketing needs
• It’s marketing that’s fun and makes sense!
3

4. Studies show that loyalty is driven
by multiple factors
• Quality products and service are critical
– 88% of consumers say that quality is a key factor in their
decision to remain loyal to a brand
– 72% of consumers identified customer service as a top
priority
• First impressions make a difference
– 48% of consumers said that the most critical time for a
company to gain their loyalty was when they the make
their first purchase or begin service
• Loyalty programs are an additional driver
– 54% of consumers would consider increasing the amount of
business they do with a company for a loyalty reward
Source: CLICKFOX BRAND LOYALTY SURVEY 4

5. Loyalty program ROI is driven by visit
frequency, increased spend, and promotions
Framework for Calculating Loyalty Return
$
Visit Spend More Participate Reward Program Net
More Per Visit
in Costs
Costs
Revenue
Frequently
Promotions
Increase
5

6. Driving 20-35% increase in visit frequency
via a loyalty program is attainable
Create a Enroll as Facilitate
Compelling Many As Increased
Loyalty Program
Possible
Frequency
• Make your rewards • Make it easy to enroll • Customers will naturally
attractive and start coming more as
memorable • Train your staff to ask they near their rewards
before every purchase
• Make the first “Do you have our loyalty • Remind them at the
reward attainable card?” point-of-sale how close
after a few visits they are to a reward
• Reward staff for
• Build multiple enrolling more • Recognize and celebrate
reward tiers (after 5 customers VIPs
visits get X, after 10
visits get Y) • Shoot for over 1K
• As they start
customers enrolled
experiencing rewards,
you will see their visit
frequency increase even
more!
6

7. Think about a spend-based rewards to reward
your most valuable customers
Every $5 Get 5 Points
Every $50 in Spend Every 50 Points, Get a Coffee
Get a Free Sub
Spend $100 on Spend $100
Stationary, Get Get a Free
$5 Off! Medium Pizza
7

8. Be sure to collect customer contact info when
you enroll customers into your loyalty program
Industry Average Open Rates
Text message marketing is one of the most effective ways to
distribute timely promotions
8

9. A compelling text message promotion
is easy to write
• Headline
– Pizzeria Uno’s Friday Happy Hour Special is On!
• Call-to-Action and Offer
– Come in today at 5 pm for Half Off Drinks and
Appetizers!
• Opt-Out
– Text OFF to unsubscribe
Loyalty programs for small businesses have 1K+ members.Text message
promotions can drive 4%+ conversion (40+ responses) in a single day.
9

10. FiveStars is pioneering loyalty
automation
FIVESTARS LOYALTY AUTOMATION PLATFORM
We take care of everything
Point-of-Sale Customer
FiveStars
Relationship Engagement
Card
Manager Toolkit
• Customer info right • Simple technology • Simple segmentation
on the POS everyone can use
• Text or email campaigns
• Never slow down • Impossible to lose
the line • Social media integration
• Over 600K cardholders
• Built in fraud control
Want a free loyalty consultation from FiveStars?
Visit go.fivestars.com/demorequest
10