Last week, I made a plea with franchise locations (and small businesses everywhere) to upgrade customer loyalty and rewards programs from the old-school punch cards. After I posted, we had some friendly internal debates about the real business value of mobile loyalty programs like I suggested. Let me address those concerns.
Franchisors, who are often strapped for resources, can cut some costs simply by digitizing customer loyalty programs and putting management in the hands of the franchisee. Each location manages their offer(s) through a web interface that generates a QR code for consumers to scan at the register.
The franchisee can test offers, change the specials, and communicate special deals to their most loyal consumers. In addition, enabling your franchisees to control part of their local presence goes a long way toward building better franchisee-franchisor relationships…something nearly every franchise needs.
Image: Mobile Loyalty Card App Admin Interface
More important is the data the franchisor and franchisee can access. Data that answers these questions:
• Who are my best customers?
• What are their buying habits?
• When do they buy?
• What do they buy?
• What don’t they buy?
This kind of data is extremely insightful. In fact, over time you’ll have statistics that can be used to improve operations. You’ll have answers to questions like:
• Do my customers prefer a discount? A free product? Perks and privileges?
• Are there products or services they never purchase? Items they only purchase when redeeming the punch card?
• Are my buyers mostly women ages 24-35 or men over 35?
How might the answers to these questions improve your business?
In addition, you can capture contact information for future promotions. Some of my favorite local businesses have no idea who I am, nor can they get reach me. It’s a missed opportunity.
By digitizing the programs, you can gain valuable insights, increase sales and build long-term relationships with your best customers. Okay, so I have convinced you this is the right way to go—and given you a platform to go do it. Now, what’s stopping you?
