The Ultimate Guide to Customer Loyalty Success

The Ultimate Guide to Customer Loyalty Success

Your free month coupon is inside :)

table of contents

• Free month coupon for FiveStars Loyalty

• Where did all your new customers go?

• 7 Steps to a Great Email Campaign

• 5 Rules of Text Message Marketing

• 10 Ways to Drive Word of Mouth, Online and Off

• Customer Loyalty ROI Calculator

• FiveStars Customer Loyalty Basics

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Practical Customer Loyalty Tips

20%INCREASE IN CUSTOMER

VISITS PER MONTH

650MEMBERS PER LOCATION

OVER

10xRETURN ON TEXT MESSAGE

CAMPAIGNS

UP TO

ON AVERAGE YOU’LL SEE:

FEATURES:

•Fully Customized Loyalty Program

•Rewards Based On Visits Or Spend

•Unlimited Free Cards

•AutoPilot Campaigns

•Unlimited Email Campaigns

• 1,000 Free Text Messages*

• Social Media Integration

• Search Engine Optimized Profile Page

• Free Customer Referrals

•Co-Ownership of Data

• Searchable Customer Notes

• POS Integration (If Desired)

•Unlimited Training & Support

•Dedicated Account Manager

• Free Online Educational Resources

FREE MONTH

*Additional texts 3.5 cents each, additional 10% fee for online Prepay loads

$229 VALUE

Go to sign up for your free month: http://go.fivestars.com/free-trial

Try FiveStars for one month free.Let’s get this out of the way first.

3

ON AVERAGE, 50%-60% OF NEW CUSTOMERS

DON’T COME BACK.

Now, let’s get real.

4

% of Customers Who Don’t Come Back

Within Next 6 Months After A Visit

Small businesses aren’t the only ones with this problem, even reputable chains have issues.

58%58%61%56%53%

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This is why a focus on customer loyalty is so crucial.

The development and retention of profitable customer

relationships is VITAL TO THE HEALTH OF EVERY BUSINESS... Companies need to be concerned with the future revenue &

profit streams associated with the ongoing satisfaction &

retention of their core, profitable customer bases. The

companies that FAIL TO RECOGNIZE THIS TRUTH overspend in

marketing to acquire & retain less profitable, or even

unprofitable customers and DO NOT SPEND ENOUGH ON KEEPING PROFITABLE ONES.

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New Customers Loyal Customers

63%of marketers think that

new customer acquisition

is the most important

advertising goal, but does

a focus on attracting new

customers really lead to

a more profitable business?

Let’s look at the numbers.

NEWCUSTOMER

LOYALCUSTOMER

VIP

La Lune Suc

ree

Bakery

- Cafe

NEW!

VISITUS!

So which customers are you focusing on?7

[1] FiveStars Data Study

... and depending on the vertical, loyal customers can account for up to

84% of total visits.[1]

But that 20% drives 80% of your total revenue and 72% of totalvisits to your business...

These guysare your loyal customers.They account for about 20% of your customers.[1]

*People who have visited at least 10 times

52%63%

69% 70% 71%

84%

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New Customers Loyal Customers

NEW!

VISITUS!

I love @LaLuneSucree lattes! #sogood

$ 10 $$ 10 $$ 10 $

VIP

LOYALCUSTOMER

La Lune SucreeBakery - Cafe

COMEVISIT!

SPECIAL

EVENT!TEXTPROMO!

$

NEWCUSTOMER

50%OFF!

SALE

Less than 20% of daily deals customers will return and pay full price for items. [4]

Over 50-60% ofnew customersdon’t come back after their first visit. [5]

New Customersare also more price conscious: the probability of getting a sale from a brand new customer is 5-20%. [3]

Loyal Customershave a greater lifetime value: They spend more over time and generate more revenue.

The average conversion rate (actual sales) from promotions sent to new customers is less than 1%. [1]

Because your loyal customers know your business, the probability of making an additional sale, or upselling, is 60-70%. [3]

Loyal customers like to hear from you: 65% want stores they frequent to email them coupons and promotions. [2]

NEW! VISIT US!

[1] KissMetrics, [2] Colloquy, [3] Marketing Metrics, [4] Rice University Study, [5] FiveStars Data Study

Over their lifetime, loyal customers spend 10X more.

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The most successful small businesses get over 60 to 70% of their customers

coming back on a monthly basis.

So, this means you need to turn your average customers into loyal customers.

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We’re here to help you with that.

• 7 Steps to a Great Email Campaign

• 5 Rules of Text Message Marketing

• 10 Ways to Drive Word of Mouth, Online and Off

• Customer Loyalty ROI Calculator

• FiveStars Customer Loyalty Basics

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20

28

36

38

Here’s what’s in the following pages:

7 Steps to a Great Email Campaign

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Send an email

for Holidays or

Special Seasons:

January - New Years Day

February - Valentine’s &

President’s Day

March - Spring Break &

St. Patrick’s Day

April - Earth Day

May - Memorial &

Mother’s Day, Graduation

Season

June - Father’s Day and

Summer Break

July - Independence Day

& Wedding Season

August - Back to School

Season

September - Labor Day

October - Halloween &

Fall Season

November -

Thanksgiving & Black

Friday

December - Christmas &

New Years Eve

# 01 Make sure your email message

is thoughtful and encourages

an action

• When writing a good email message, you want to make

sure to keep it short and to the point.

• Use persuasion tactics, like time expirations,

exclusiveness, secret items or prizes, etc. to create a

sense of urgency. For example, ‘The first 100 customers

receive a free appetizer!’ plays on the customers’ fear of

missing out. But use these sparingly since urgency can

lose its effectiveness if done too often.

• Make sure you include a way to find you! Add addresses,

relevant phone numbers, and an email they can respond

to if they like.

• Most importantly, include a prominent call to action: what

do you want them to do and when?

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# 02 Include a relevant picture

People are visual creatures, so make sure to add a picture or two to help illustrate the message you want your readers to get. Photos increase the likelihood that your customers will click through your email, which means more customers visiting your website, calling you for a reservation, etc. Some considerations to take into account:

Image Source: Anthropologie

Also, be cautious about ONLY using pictures in your email. If a customer’s email doesn’t load the images, or loads them too slowly, your customers won’t see any of your message, so be sure to always include some text, even if it is at the bottom.

Source: Simple Relevance

•Keep images small so they don’t slow load time on less advanced Internet connections.

•Use images with people and faces in them.

•If you can, avoid stock imagery. It’s obvious and makes your email look less personal. And please, PLEASE don’t use clip-art.

•Finally, include a link in your images. People expect to be able to click through to something when they see an image.

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# 03 Make sure your subject line is

eye catching and interesting

You have about 2 seconds to convince a

customer to open your email, or trash it. So you

have to make it grab their attention using

between 5 and 8 words.

47% of consumers make their decision about

whether or not to open emails from businesses

or nonprofits based on the content of the

subject line.

Source: Social Media Quickstarter

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# 04 Some rules are meant to be

broken, but laws are not

• Don’t use false or misleading header information.

• Don’t use deceptive subject lines.

• Identify the message as an ad.

• Tell recipients where you’re located.

• Tell recipients how to opt out of receiving future emails

from you.

• Honor opt-out requests promptly.

• Monitor what others are doing on your behalf.

CAN-SPAM Act

Check out http://www.business.ftc.gov/ for all the details!

Things that will be marked as spam are lots of punctuation marks, excessive use of the word FREE, misspellings, grammatical errors, and using all caps.

Source: Constant Contact

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# 05 Schedule your emails at optimal

times and be cautious of the

number of emails sent per week

Most messages land in people’s inboxes in the

morning, which is why it is better to email in the

afternoon. That is when it will be more likely

noticed, opened, and clicked through.

Always remember: Quality over quantity. So

don’t send more than a couple a week! That way

your loyal customers will eventually be on the

look out for your emails since you send only the

best content.

Don’t have the

time to write up

emails and send

them to your

customers at the

right times? Let

us do the heavy

lifting.

• We populate and enrich your customer data • We run optimized marketing campaigns for you • We give you the results in an easy to understand format

Learn more: http://fivesta.rs/AutoPilotFeatures

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# 06 Train your employees to ask

and make it super easy for

your customers to give their

email contact information

Try to capture the customer information

on your point-of-sale* or computer, it

will save you time in the long run.

Display a marketing table stand at your

checkout counter that tells customers all

the incentives they will receive for

signing up to your email list.

Source: Social Media Quickstarter

Top reasons people will sign up for your email list: To receive discounts and special offers (58%), to take part in a specific promotion (39%), or if they are a regular customer (37%).

Source: Social Media Quickstarter

*You can use FiveStars to not only capture your customers’ emails, but also their names, phone numbers, notes about their purchases, their birthdays, and so much more. Send targeted emails to your VIP customers, as well as reconnect with customers who haven’t been back in a while, with FiveStars Loyalty. We integrate right on your point-of-sale!

Check out http://fivesta.rs/demoFIVESTARS for more details.

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# 07 Measure your success to

improve over time

Track how many people visit from your email by

including in your email message ‘Give email code

MOTHERSDAY to your cashier at checkout to

get your discount,’ and have your employees

tally them up. Some email marketing programs

give you open and click through rates; if so,

compare the results across your different email

campaigns. You may see patterns that will tell

you which subject lines and messages perform

better.

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5 Rules of Text Message Marketing

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How does text messaging drive loyalty?

• Brings your best customers in the door immediately

• Customers prefer getting timely messages from places they already go to, especially places they frequent

• Text message promotions/ads can reach customers throughout the day, they don’t need to be in front of a TV or computer

• Good text message campaigns can compliment your other marketing efforts

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# 01 Write thoughtfully

• You only have 140 characters: Make them count!

• Always check spelling and grammar.

• Use abbreviations when necessary, but don’t over do it.

• Don’t text like your tween cousin. GR8 THX BYE!

• Make sure to include a call to action!!! Visit Haagen-Dazs PaloAlto for your Valentine’sDay cake; order beforeFeb 10th & get 14% off!Call 650-555-5555 today!Reply STOP tounsubscribe

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# 02 Send offers and reminders

Mokutanya Charcoal Grill1155 California Dr: $0.50Oysters from 6pm-8pmonly! No limit & whilesupplies last, show usthis text! Reply STOPto unsubscribe

Stop by Elle Boutique onBurlingame Ave for oursemi-annual jean sale!Show this text for an extra 10% off purchase!Reply STOP to unsubscribe

We miss seeing you! Stop by Annie’s Bakery before Sept 12 and get a special 30% discount. txt OFF to unsubscribe

Mobile Coupons/Promotions Sales Reminders/Special Events

Win Back Lost/Lapsed Customers

With FiveStars AutoPilot features, we sync your text marketing with actual behavior–automatically. You never have to worry about planning out text schedules, we handle it all for you.

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# 03 Send texts at the right times

• Schedule and send your text messages at optimal times for maximum effect

• Don’t send more than one text a week to prevent opt outs from too frequent messages

Mokutanya Charcoal Grill1155 California Dr: $0.50Oysters from 6pm-8pmonly! No limit & whilesupplies last, show usthis text! Reply STOPto unsubscribe

Stop by Elle Boutique onBurlingame Ave for oursemi-annual jean sale!Show this text for an extra 10% off purchase!Reply STOP to unsubscribe

Dinner Special 6pm-8pm Two Week Jean Sale

Text sent: 4:30pm on dinner special

Text sent: 11:00am on first Saturday during

sale

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# 04 Build your online presence

• Use text promotions to encourage visitors to your website

• Request Facebook likes and Twitter followers via text

• Send text to help promote social media posts or specials

Long day at the office?Saba Cafe Caters! Visitwww.sabacaferwc.comtoday to make yourorder. Use code 123 for1 Free Soda Ltr! ReplySTOP to unsubscribe

Like us on Facebook atfacebook.com/danvilleflamebroilerand receive 15 % off yourentire order throughFeb 9th! Reply STOPto unsubscribe

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# 05 Prompt customers in store

• You only have 140 characters: Make them count!

• Always check spelling and grammar.

• Use abbreviations when necessary, but don’t over do it.

• Don’t text like your tween cousin. GR8 THX BYE!

• Make sure to include a call to action!!!

TEXT “SIGN UP”

TO 55555

TO GETSTARTED

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Some rules are meant to be broken...

These are all general rules of thumb, but every business is different, so feel free to cater to your customers’ wants and needs.

...but laws are not

Federal Communication Commission

• Basic guidelines here: http://goo.gl/0tfSF

• Telephone Consumer Protection Act here: http://goo.gl/b22am

By law, the customer has to give written consent to receive texts, and you must have opt out option in message.

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10 Ways to Drive Word of Mouth, Both Online and Off

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90% of consumers say they trust

recommendations from people they know.

70% of consumers trust other

consumer opinions posted

online.

Source: Nielsen Survey

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So what does this mean for your small

business?

Your current customers, as well as potential customers who haven’t met

you yet, are talking.

Possibly about your business.

So let’s make sure more and more people are positively talking about

your small business.

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# 01Don’t get hung up on being

newsworthy, just be yourself.

Customers are more likely to share

what is at the top of their mind at

any given point of time. So a

product that is cool, or interesting

doesn’t keep conversation going

too far. Common products or

services are talked about just as

often if not more, so focus on

delivering the best service and

products you have.

# 02Stay on the top of your

customers’ minds.

To stay top of mind and

mentioned in conversations, you

need to be where the people are

talking. Do this by printing your

business name and logo on your

napkins, cups, bags, etc. so when

your customers leave, your

business can still be on the top of

their mind.

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# 03Give customers a test drive,

and make it an experience

to remember.

You can’t say much about

something you’ve never tried.

People talk more often and more

easily about things that they have

experienced first hand. But, this isn’t

just handing out a sample of ice

cream. Provide a fun experience,

display complementary food or

beverages, or show how the

customer could use your product or

service in their everyday lives.

# 04Provide conversation starters

through wearable or usable

promotional items.

Offering t-shirts, reusable bags,

sunglasses, koozies, or pens, etc.

allow your business name or logo to

be in places that people are talking

face to face. If you are clever, funny

or catchy text or images can

become conversation starters for

people.

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# 05Help customers get together and

learn something new.

Free dessert by mentioning us on

Twitter! Log into our wifi network

by checking into our Facebook

page! Receive a 15% off your book

purchase with a Foursquare check

in! These are all great ways to

encourage customers to share you

to their online friends.

# 06Encourage the Yelp review

community and give feedback to

any non positive experiences.

Customers will spread the word

about bad experiences more

frequently and quickly than good

ones. So you may have to put in

some extra effort here. For

instance, make it easy to give

reviews on the spot by setting up a

small laptop right in your store.

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# 07Provide your customers

incentives to mention you via

their social networks.

The more people know about your

stuff and have good experiences,

the more they will talk about it.

Teach your customers how to style

an outfit, cook a 30 min dinner,

grow a herb garden, or whatever is

relevant to your small business.

Have in-store events or post video

how-to’s on YouTube and

Facebook.

#08Implement a customer

rewards program.

There is nothing like watching your

points get closer and closer, and then

finally earning something free or a

big discount. Your customers will feel

the same and share their excitement

to their friends online and off.

FiveStars can allow your

customers to automatically

post to their Facebook when

they’ve earned their reward.

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# 09Get your best customers to be

your cheerleaders.

You know those customers that

are always mentioning you on

Twitter? Or checking into your

Facebook page? Engage,

recognize, and reward your most

frequent visitors (and most

talkative online) for being loyal to

you. These Facebook fans and

Twitter followers immediately

become part of your marketing

team.

# 10Give your customers not just

great, but over the fence out of

the ballpark, grand slam

customer service.

People get good, or even just decent,

customer service everyday. It is only

the experiences that go beyond what

they expected that drive these

customers to joyfully it shout it to all

their friends and families.

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Customer Loyalty ROI Calculator

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This link takes you to the live calculator:

http://fivesta.rs/loyaltyROI

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FiveStars Customer Loyalty Basics

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How FiveStars increases loyaltyYou give her a reward because she spent more money in a shorter period of time.

VISIT MORE FREQUENTLY INCREASE SPEND

Lisa is a regular customer who visits once every three weeks.

As she gets closer to a reward, she starts visiting more frequently, on average 12-44%.

When she’s just a few points away, she comes in once a week and spends more to earn points.

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Now she visits more frequently AND promotes your business online.

She receives targeted promotions right to her phone or inbox based on her visit patterns.

You hand out cards. We handle your marketing for you. Have more time for the things you love.

Lisa just shared a link via FiveStars. June 15 Just got a FREE Latte

Cafe Venetia www.cafevenetia.com Get the FiveStars Hook Up get: 1 Free Espresso Drink

Like . Comment . Share 30 people like this. Gracie I WANT ONE!! Like . Comment . Tuesday at 10:22pm

345 People saw this post

WORD OF MOUTH

It’s been a month since we’ve last seen you, we miss you! Come in to Pinkie’s today with this text & get a coffee on the house w/your pastry purchase. (Txt OFF to unsubscribe)

ENGAGE CUSTOMERS

Lisa is so happy that she registers her card online and connects with Facebook.

ROI

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How does FiveStars do all this?

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We help you develop a customized loyalty program.

Earn points when you spend $10 or more, 10 points gets you $5 off!

Buy 10 subs, get one free!

10 Points = Free Coffee 20 Points = Free Sandwich

50% off every 5th visit

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A well-structured loyalty program can lift customer visits by over 20% automatically.

Up to 44%

increase

in customer visits

Nightlife

Retail

Coffee & Tea

Fast Casual

Restaurants

*Average visit frequency increase forFiveStars merchants by vertical

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With Prepay, drive increased spend

from your best customers.Customers spend more per month since spending a Prepay balance

doesn’t feel the same as spending cash.

$20

80%Customers spent

more per monthwith Prepay andloyalty program* PREPAY

& LOYALTY

$30

$16

LOYALTYONLY

NO LOYALTYNO PREPAY

*FiveStars data study at large QSR chain

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The customer loyalty data we help you collect will also improve your customer

service.

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Get even more customer details with smart data collection.

Congrats on earning a point at BB’s Bakery! Reply to this text with your birthday (MM/DD/YY) & you’ll get a free cupcake on your big day! txt OFF to unsubscribe

YOU COLLECT PHONE NUMBERS AT THE POS

WE COLLECT BIRTHDAYS & EMAILS AFTER THE SALE

Welcome to fivestars.com, the rewards program of Armadillo Willy’s. Reply w/ your email to register and get bonus points! txt OFF to unsubscribe

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With AutoPilot, we automatically sync marketing with actual behavior.

GET NEW CUSTOMERS TO COME BACK A 2ND TIME

Delight your loyalists

Thanks for coming to Annie’s Bakery today! Come in again by Sept 12 and get 15% off! txt OFF to unsubscribe

You’re one of our most valued customers at Annie’s Bakery! Come in by Sept 12 and get 10% off! txt OFF to unsubscribe

We miss seeing you! Stop by Annie’s Bakery before Sept 12 and get a special 30% discount. txt OFF to unsubscribe

We want you back! Stop by Annie’s Bakery before Sept 12 and get a special 50% discount. txt OFF to unsubscribe

50-60% of new customers don’t return

Visit rates increase 25% when you send promotions to your regulars

Every 30 days of not visiting, the likelihood a customer will return drops 50-75%

Visit rates increase 3-4x from lapsed customers when you send the right promotion

DELIGHT YOUR REPEAT CUSTOMERS

REVIVE YOUR LAPSED CUSTOMER BASE

WIN BACK YOUR AT RISK CUSTOMERS

70-80% of second time visitors return

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Drive more word-of-mouthwith social media.

48

Show off your rewards, and get found in search results.

49

Track your program results online or get them directly in your inbox.

50

FiveStars pulls everything together to give you truly smart marketing.

Search Engine Optimized

Profile

Social Media Integration

Rewards Program

Customer Recognition

Prepay

Automated Customer

Engagement

Smart Data Collection

51

Get your customers hooked with FiveStars. You hand out cards. We take care of the rest.

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20%INCREASE IN CUSTOMER

VISITS PER MONTH

650MEMBERS PER LOCATION

OVER

10xRETURN ON TEXT MESSAGE

CAMPAIGNS

UP TO

ON AVERAGE YOU’LL SEE:

FEATURES:

•Fully Customized Loyalty Program

•Rewards Based On Visits Or Spend

•Unlimited Free Cards

• Prepay In-Store & Online*

•AutoPilot Campaigns

•Unlimited Email Campaigns

• 1,000 Free Text Messages*

• Social Media Integration

• Search Engine Optimized Profile Page

• Free Customer Referrals

•Co-Ownership of Data

• Searchable Customer Notes

• POS Integration (If Desired)

•Unlimited Training & Support

•Dedicated Account Manager

• Free Online Educational Resources

FREE MONTH

*Additional texts 3.5 cents each, additional 10% fee for online Prepay loads

$229 VALUE

Promo Code: ULTIMATE2013

Call us at 860.578.2770 or use your code online here: http://fivesta.rs/1cVEULo

Try FiveStars for one month free.In case you missed it.

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