Invest in more signups & not just optimization

A 70-store brand recently took an unconventional approach to loyalty programs, increasing their loyalty adoption rate from 15% to 45% (300% growth) in just four months – all for the cost of a few movie tickets for top-performing cashiers. In this blog post, we will discuss how this innovative strategy led to an outstanding return on investment (ROI) and why prioritizing membership growth over campaign optimization is a game-changer.

The Power of Employee Incentives

Instead of revamping their loyalty program or investing heavily in advertising, the brand decided to motivate their cashiers to enroll more customers by offering movie tickets to top-performing cashiers in each store every month. This simple and cost-effective reward encouraged cashiers to promote the loyalty program and actively engage customers in conversations about the benefits.

The Results

In just four months, the loyalty adoption rate tripled from 15% to 45%. This increase led to a significant growth in the number of customers in their marketing database, giving the brand more opportunities to send targeted marketing campaigns to a larger audience. This strategy not only strengthened their relationship with existing customers but also attracted new ones, ultimately driving more sales and revenue.

Why More Members Matter

Focusing on increasing the number of loyalty program members, rather than optimizing campaign segments or strategy, proved to be a more effective approach for this brand. Here's why:

1. Expanding Audience Reach: A larger database of customers means an expanded reach for marketing campaigns, which increases the potential for higher engagement and conversion rates.

2. Improved Personalization: With more members, the brand has access to more customer data, allowing them to create better-targeted campaigns based on preferences, interests, and past purchase behavior.

3. Enhanced Customer Experience: By focusing on the loyalty program, the brand can prioritize customer retention and encourage repeat purchases, which are more cost-effective than acquiring new customers.

4. Increased Word-of-Mouth: Satisfied customers share their positive experiences with others, attracting new customers to the brand and further expanding the marketing database.

Conclusion

By rewarding their top-performing cashiers with movie tickets, this 70-store brand unlocked a powerful strategy to increase their loyalty adoption rate and expand their marketing database. The investment in movie tickets proved to have a far superior ROI compared to the optimization of campaign segments, strategy, or investing in new technology.

This case study highlights the importance of prioritizing membership growth as a means to achieve long-term success with a loyalty program. By focusing on increasing the number of loyal customers, brands can reap the benefits of an expanded audience, improved personalization, enhanced customer experience, and increased word-of-mouth, all of which contribute to a stronger bottom line.

Learn more about how brands use Spendgo to drive more signups to their Loyalty Program