How Customer Loyalty Programs Can Increase Basket Size By Over 20%
If presented properly, loyalty programs can increase not only more frequent visitation by existing customers, but also attract new customers as well.
Cheetah Digital, the cross-channel customer engagement solution provider for the modern marketer, has reinvented the customer loyalty stamp card for a new generation.
Stamp programs are yesterday’s tactic. While rewarding frequent customers is always a good practice, limiting such programs to a punch card causes both vendors and customers to miss out on far greater benefits. Today’s digital, connected world can offer much more. If presented properly, loyalty programs can increase not only more frequent visitation by existing customers, but also attract new customers as well.
Take for instance Cheetah Digital client Bakers Delight bakery in Australia. After offering a traditional stamp-based loyalty program for over 20 years, the bakery chain with over 500 locations nationwide wanted to try something different.
The new solution, developed with Cheetah Digital, gave customers the ability to join the program as well as earn and redeem awards using not only the traditional stamp card, but also with their mobile phone number or a mobile app.
Expanding formats like this allowed the bakery to offer more personalized offers by collecting more information about each customer than just the number of times they’ve visited. The solution was built around recognising and rewarding a customer at the Point of Sale, but the options for different methods of interacting with the program allows them to engage with the program in a way that they’re comfortable with, while still ensuring a consistent customer experience regardless of channel.
In the first month, the program generated over 200,000 new sign-ups—30% more than the company’s initial target. What’s more, members of the program—dubbed ‘Dough Getters’—spend an average of 25% more per transaction than other customers.
“After thoroughly evaluating the market, it was clear that Cheetah Digital was the only partner that could deliver an all-in-one solution to support us in achieving our business objectives and deliver a seamless customer experience,” said Kristy Elsworth, Loyalty, CRM and Digital Marketing Manager at Bakers Delight bakery. “The data security and reduced latency that Cheetah Digital offered us with their market-first Engagement Data Platform in Australia was a defining factor in our decision-making.”
