Are Your Good Enough For Loyalty?
Fundamentally loyalty is about having customers who are passionate enough about your product, service, or both, that they want to return to your business to experience it again. You know from your own experience that no program, reward or incentive is going to make up for a bad product or service that leaves you feeling ripped off.
The most important part of your loyalty program is having a product and service that your customers like. Its easy to forget this fundamental point with all the new advertising options, from daily deals to mobile apps, that are being marketed hard to business owners these days. So how do you know if your customers really like your product or service (or both)? You may have some idea from the faces you recognise as repeat customers, but what proportion of your customer base do these people actually represent? How many others that you dont recognise have come in just once and not come back?
Its an important question to answer because there is not much point spending on any form of advertising if the people you attract arent going to return. Conversely it is also useful knowing if you have a lot of repeat customers but not many new ones as this would indicate you need to aim your advertising to reach new customers.
There are various methods you can use to answer the question of how many customers are returning. One of the old standards is to survey your customers. Unfortunately this is a relatively expensive method in that it requires significant time investment from you and your customers and for that very reason the results can be skewed. It takes a reasonable number of customers to build a decent sample size and those most inclined to respond may well be your best customers anyway.
At EFTPlus they have developed a far more accurate method. EFTPlus can analyse your electronic transactions and, overtime, work out how many transactions are from new customers and how many are from repeat customers. The real beauty of this method is that it requires no work from you or your customers and the data is presented in an easy to read chart that shows the proportion of new versus return customers so you can make sure these are in the right balance.
Exclusive Member Offer!
The Restaurant Association has negotiated for EFTPlus to provide this data analysis, and more, in daily, weekly and monthly performance updates FREE for members. There is no obligation to use any other EFTPlus service. The only condition is that you need to be on the Paymark payment network. To find out more go to www.eftplus.co.nz or call the Association on 0800 737 827.