How to review your loyalty program?
Objective: I wanted to be provocative and walk you through on how to best understand how Loyalty Program works and functions to improve and grow your net sales.
Start by reviewing your Total Sales for the period time frame “Year to Date” because this gives you your overall growth and high level of the business. Start by reviewing your Total Sales, Average Ticket and Tips.
Review Total Rewards Redeemed:
According to industry standard profit margins according provided by the NCA are 80% for all espresso drinks, compared to food profit margins of only 40-50%. Here is an article Small Business Chronicle that provides you a better understanding of how this works.
- This is why we only allow reward redemptions on drinks.
- From the rewards redeemed and if your cost of goods is 20% of the total “Discounts/Rewards”, then 3 Ravens spent only $41 ($209.50*20%) and drove $606 of revenue. (80% of $606 is $484 in Profit)
- And this doesn’t include revenue earned simply from being on the joe network that costs you nothing. Which at this moment is $169.25
In your Loyalty Marketing Dashboard:
You will find the revenue attributed from the built in loyalty program :
- This revenue is total goods(revenue) purchased once they’ve redeemed rewards through the mobile app. By incentivizing customers at the right time and with the right deal, joe programs were able to attribute to $456 in net sales for your shop.
- joe marketplace: Total revenue driven from customers who initially used joe at a different coffee shop. Revenue simply by being on the network.
How does this compare:
I want to review with “Why” we built this program into the process. We built this program because we understand it’s an industry wide program but we built in our system here at joe we don’t believe in penalizing you for growing your business unlike other competitors, such as Square for example.
- We don’t charge per visit
- We don’t limit our loyalty program
- We don’t have additional costs for our automated program
Our built in loyalty and marketing programs are intended to save you time and effort as a shop owner. Allowing you to focus on what you do best, making great coffee and building community.
How does it work or grow your business:
As you continue to grow and as we continue to collect data on customers' coffee routines to personalize messages, tailor incentives and re-engage at the exact right moment. Your shop should see your overall loyalty attributed revenue almost double in 90 days without you having to lift a single finger.
- Our loyalty program is industry leader and innovative for the future of coffee and today’s consumer behavior all at no cost to you or having to lift a finger.
- Helps them stay on top of mind
- Is an industry standard program that joe is providing at no cost to them without them having to lift a finger.
Let me know if you have any additional questions or concerns along the way! More than happy to do a deep dive on this with you.