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Loyalty Programs: How Much Should Your Rewards & Points Be Worth?

This guide will help you determine the optimal value for loyalty points. We’ll dive into essential pricing principles, effective strategies, real-world...

Francesca Nicasio

Content Strategy Manager

Fun fact: 20% of customers stated that rewards programs influence their choice of where to shop. 

There are clear benefits to having a loyalty program. However, there are also some hard truths: Just because it’s driving customers doesn’t mean it’s making bank. Businesses that fail to recognize they’re overspending on rewards or misjudging their importance are more likely to suffer losses. 

To create a successful loyalty program, be sure to check whether its benefits outweigh the costs right from the outset. This means taking the time to calculate loyalty points accurately and making sure that you’re valuing your program’s points in line with your business goals and targets. 

This comprehensive guide will help you determine the optimal value for loyalty points. We’ll dive into essential pricing principles, effective strategies, real-world examples, and common challenges.

By the end of this guide, you'll be able to set yourself up to achieve consistent and lucrative returns from your loyalty marketing strategy.


 

What are loyalty rewards?

Loyalty rewards are incentives offered by businesses to encourage and reward repeat purchases by customers. They can come in the form of:

  • points
  • discounts
  • exclusive benefits

…all of which are designed to build and maintain a strong, loyal customer base.

Think of it this way: loyalty rewards are the currency of customer appreciation, and that’s why some of the world’s most customer-centric brands — including Starbucks, Sephora, and Amazon — invest a great deal in their loyalty and rewards initiatives. 

These companies know that loyalty programs encourage repeat purchases while nurturing relationships with their customers. 

Rewards programs also have a tangible impact on sales metrics. Some programs require reaching a specific cash or credit card spending threshold for loyalty points. This encourages higher splurging in a single transaction to increase basket size and average transaction value. 

In fact, our research shows that on average, a loyalty member spends 72% more than an anonymous shopper.

Principles of pricing rewards

Pricing customer loyalty rewards requires a balance between attraction and sustainability to ensure immediate engagement and long-term profitability. Your rewards must be enticing enough to capture attention without compromising your profit margins or undervaluing your products.

Giving back value in a loyalty program-1

You can achieve this balance by keeping the following in mind:

Considerations when pricing rewards

To calculate loyalty points more accurately, consider the following factors when designing your program.

1. Customer Lifetime Value (CLV)

CLV is the overall expected revenue from customers throughout their engagement. Thus, it helps you determine the maximum reward program investment while maintaining profitability.  

Customers with a CLV above your average CLV indicates that they are long-term customers who are engaged and loyal. You can offer them high-value rewards, such as VIP events, limited-edition products, or loftier monetary rewards. Conversely, lower CLV shoppers can enjoy modest rewards like free shipping on certain thresholds to encourage ongoing engagement while retaining positive ROI.

2. Cost of rewards

Cost of rewards is a key metric to avoid overspending. Your total loyalty point rewards cost mustn’t exceed the incremental benefits generated by increased customer spending. 

Note: Incremental benefits don’t only mean higher sales. It can also include non-monetary benefits like increased customer retention, improved brand loyalty, and more word-of-mouth referrals.

Add the product/service, fulfillment, and administrative expenses associated with granting rewards to get your total cost of rewards. Then, compare that against the benefits to analyze the potential return on investment for different reward options.

For example, if offering a free product as a reward incurs a direct cost of $5 to your business, you should ensure this cost is more than covered by the additional spending or engagement the reward generates.

3. Competitive positioning

This factor influences your offering’s perceived value relative to competitors. If your competitors offer similar rewards at a lower price point, you may need to tweak your pricing strategy to stay competitive. Otherwise, you can justify a premium price with unique, high-quality rewards.

You can even go a step further by identifying areas where competitors fall short and strategizing to fill those gaps. Conducting market research analysis can be helpful in such a case. 

"On average, transactions made by loyalty members are worth over 60% more than anonymous transactions. Imagine even just 5% of your customer-base joins your loyalty program, and spends 60% more per transaction. Think what that would do to your bottom line."

- Rory Moss, Loyalty Expert

4. Economic conditions

Economic conditions can intensify market competition. During downturns, shoppers become more price-conscious and seek value for money. You can choose to engage in price wars or offer aggressive pricing strategies (i.e., offering higher-than-normal loyalty points) to gain customers.

Since this external factor is inevitable, you can only mitigate their effects to some extent. Leverage predictive analytics to anticipate shifts in demand and adjust your pricing like you would for competitive positioning.

5. Market demand

Responding to market demand for loyalty program rewards involves monitoring purchasing patterns, survey results, and industry trends. Insights from these activities shed light on which reward types appeal the most to your customer base.

When market demand for exclusive events is high, customers perceive these offerings as valuable and are willing to pay premium prices for them. Thus, you can charge more for experiential rewards.

Pro-tip: Market demands fluctuate. Continuously monitor your pricing strategy’s performance and adjust it as needed.

Point structuring

Customers may perceive the program as less valuable if it doesn’t meet their expectations or if the loyalty point bonus takes too long to accumulate. It can lead to decreased participation and engagement. 

Altering value perception

Here are two ways to structure a well-designed points system that serves your (and your customers’) needs:

Point Valuation

Set a monetary value for each loyalty point. It can be a fraction of the average profit margin per transaction or your CLV. 

For instance, if each loyalty point is valued at $1.00, the program becomes straightforward and highly perceivable in terms of value, making it easy for customers to understand how much they’re earning with each transaction.

It’s best to start with a conservative point value. After monitoring customer response and performance metrics, make adjustments to obtain the optimal point value.

Point-to-spend Ratio

Specify the number of loyalty points‌ customers will earn for every dollar spent on purchases. A higher ratio encourages more frequent purchases to accrue points faster. Meanwhile, a lower ratio delays point accumulation but helps reduce program expenses. 

Industry benchmarks are a good reference point, but maintain it in line with your objectives. For instance, if the goal is to increase customer retention, opt for a higher ratio to encourage repeat purchases and ongoing engagement.

Refer to these price structuring options when deciding on the reward types you’ll offer. But before we get into these, here are more strategies to calculate loyalty points more accurately.

4 steps to sustainable rewards pricing

Follow these practical strategies to optimize your reward pricing while keeping the loyalty program compelling and aligned with your financial goals.

1. Understand cost-based pricing vs. value-based pricing

Cost-based pricing focuses on covering loyalty program expenses and guaranteeing profitability, while value-based seeks to connect rewards with perceived customer value.

Cost-based pricing calculates the direct costs associated with providing rewards. It’s a safer option for startups or small businesses with limited resources. It sets prices based on tangible costs rather than uncertain market factors or vague perceived value. 

Here’s a simplified illustration without factoring in retention rates, seasonal fluctuations, competitor strategies, and other pricing factors. 

You’re running a loyalty program, costing you $22 per individual ($15 for reward product costs, $5 for marketing expenses, and $2 for administrative overhead). If you aim for a 20% profit margin, you should be earning $27.60 per customer enrolled ($22 total cost per customer / 0.8 profit margin).

Value-based pricing, on the other hand, doesn’t focus on cost recovery. You calculate loyalty points pricing based on its impact on customer satisfaction and loyalty. It’s ideal for businesses that value brand reputation, such as luxury goods and high-end technology.

For instance, you could offer personalized services or products not available to the general public. This approach enhances their perceived value and can justify a higher points requirement, encouraging more purchases and engagement from members.

2. Incorporate customer feedback and insights from your data

Feedback lets you understand what your customers truly value. Solicit their ideas through surveys, reviews, and direct communication channels. 

In addition, data analytics can help you see exactly what works and what falls flat in your program. It tracks key metrics like CLV, redemption rates, and engagement levels. Use these insights to tweak your offerings and personalize rewards based on each customer base’s behavior and preferences.

3. Define your objectives

Your loyalty program’s objectives ensure that each reward contributes to attaining your bigger goals. Specify your target goals, whether it’s increasing customer retention or boosting sales.

Review your current reward offerings and assess how well they support these goals. Suppose your initial objective is to boost customer retention, but you notice that reward redemption rates are low. You can adjust your reward structure to include more experiential rewards or exclusive perks to pique more interest.

4. Analzye competitors and position yourself strategically in-market

Your competitors can overlook market gaps — and that’s where you come in. Study their offerings, including their reward types, pricing strategies, and program features. Recognize their shortcomings and make them your strengths.

Let’s say your findings show competitors lack flexibility in redeeming rewards. In this instance, having multiple redemption channels (e.g., online, in-store, and mobile) can help make your program stand out in a crowded market.

3 examples of successful rewards pricing structures

Check out these three brands that have captivated customers and driven business growth through their loyalty programs. Here are their real-world success stories:

American Airlines

american airlines rewards program structure

The American Airlines AAdvantage® program offers elite status to frequent flyers with exclusive privileges such as priority boarding, systemwide upgrades, and extra baggage allowance. AAdvantage members can also earn bonus miles with partner airlines with every purchase using any Citi®/AAdvantage® Aviator® credit card.

Anyone can enroll with no annual fee, suggesting that value-based pricing can be as profitable as cost-based pricing. The AAdvantage® program’s longevity speaks volumes about its success. The increased engagement and revenue from more airline bookings and card purchases outweigh the reward costs, resulting in a favorable bottom line.

Neal's Yard Remedies

Screenshot 2024-03-21 at 9.36.25 AM

After decades of successful sales, Neal's Yard Remedies wanted to take the next step. It was time to undergo a digital transformation to offer a truly omnichannel experience. Unfortunately, their old POS was complicated to use and lacked an open API. Neal’s Yard Remedies wanted to find a POS and loyalty solution that worked seamlessly with their ecommerce platform to deliver that omnichannel experience.

Now, Neal’s Yard Remedies run an easy-to-use loyalty program across all their sales channels. It’s clear how to earn points, and there are multiple ways to earn. For a purchase, their points to spend ratio is set at 5:1 (customers earn 5 points when they spend £1). They’ve opted for a simple framework for rewards too: 500 points are worth £5.

Alpha60 

Screenshot 2024-03-21 at 9.43.24 AM

Alpha60 takes a different approach. Brand Manager Kelvin explains that Alpha60's loyalty program is about 'surprise and delight', rather than a promotional tool used to incentivize sales.

As part of the customer-first approach, ALPHA60 decided to make the loyalty program as simple as possible. Spend a thousand dollars, get a thousand points (a 1:1 points-to-spend ratio), get a $50 voucher.

“We try not to complicate it too much and add different things in, and that really works for us. I think it’s because it’s simple for people. It’s easy for customers to understand.” Kelvin believes simplicity helps customers get more invested with their points: they always know when they have a voucher ready to redeem.

Challenges in pricing rewards

The most common types of loyalty rewards include:

  • Percentage-based discounts
  • Fixed dollar discounts
  • Free shipping
  • Free products
  • VIP experiences

Each ​​loyalty program reward has its cost implications. For instance, percentage-based discounts work well with price-sensitive customers or low average order values. They encourage larger purchases or more frequent visits, although they could hurt your bottom line if applied to high-value items.

If shoppers mostly have higher and varying average order values, setting fixed dollar discounts on specific thresholds or repurchase intervals can make pricing predictable.

E-commerce and online businesses benefit from free shipping because it eliminates potential barriers to online purchases. But you’ll have to set an average order value before you hand it off to your customers. Otherwise, it’ll erode your profits.

Offering free products or samples can boost product discovery and your loyalty program's perceived value. But like free shipping, the total cost shouldn't exceed the incremental revenue or engagement they generate.

VIP access or experiential rewards are an excellent option for building a loyal customer base. It helps enhance brand trust and differentiation by fostering a sense of belonging among top-tier loyalty members. To ensure profitability, only offer this reward when increased engagement and CLV can justify the expenditure of delivering such experiences.

Here’s a table to simplify your comparison:

Reward type

What

Good for

Consider

Percentage-Based Discounts

Customers receive a certain percentage off their purchase.

Businesses with a low average order value (AOV) or those selling commodity products where customers are price-sensitive. This can encourage larger purchases or more frequent visits.

It might eat into margins if not carefully managed, especially for high-value items.

Fixed Dollar Discounts

Offers a fixed dollar amount off, which could be on the next purchase or once a certain points threshold is reached.

Businesses with higher and varying AOVs, as it provides a predictable cost that doesn't fluctuate with the price of the cart. It's also appealing for businesses that want to encourage a minimum spend.

Ensuring the discount threshold doesn't undercut profit margins is essential. It's also less enticing for low-value purchases.

Free Shipping

Free shipping on orders after reaching a certain points number or as a tiered benefit.

E-commerce businesses or those with a significant online presence. It's particularly effective if shipping costs are a known barrier to purchase.

Should be balanced with shipping costs to avoid eroding margins, especially for low-margin products or very distant shipping destinations.

Free Products or Samples

Offering free products or samples once customers reach a certain tier or points level.

Retailers with high-margin items or those looking to introduce new products. It encourages exploration of your product range and can enhance the perceived value of the loyalty program.

The cost of goods given away should be carefully considered against the incremental revenue or engagement they drive.

VIP Access or Experiential Rewards

Providing access to exclusive events, products, or experiences for top-tier loyalty members.

Brands with a lifestyle component or those looking to build a community among their customers. Works well for businesses aiming to enhance brand loyalty and differentiation.

The cost of creating these experiences should be justified by the increased engagement and customer lifetime value they generate.

To minimize costs while maintaining attractive rewards, don’t put all your eggs in one basket. Spread your investment across multiple reward types to target diverse audience segments. It won’t alienate customers who may not prefer a particular reward type. If you still can’t decide, talk to an expert for tailored advice.

Free Download: PDF and calculator for structuring your points and rewards

For more loyalty program optimization insights and tools, download our new PDF and calculator on pricing points and rewards. 

Download ebook on structuring your loyalty program

Notable trends in loyalty rewards

60% of brands claim experiences are indispensable for their success. Consider delivering experiential loyalty program perks they can’t get elsewhere to drive stronger brand advocacy.

Cutting-edge AI and analytics tools are another innovation that can help refine your reward pricing strategies. With online shopping, AI algorithms can track the most viewed, added to cart, and purchased products. Understand these patterns to maximize your pricing strategy on popular items.

Businesses also gather and analyze customer data in real time, urging more personalization and dynamic pricing. That way, you can streamline the redemption process with reward recommendations or one-click redemption. Implementing dynamic pricing could mean offering personalized discounts or bonuses tailored to individual customer profiles.

With so many emerging trends, it can be difficult to know where to begin. So, start with investing in the right loyalty software to harness these innovations and create highly effective reward systems.

Optimize your loyalty program today

Well-priced rewards inspire more loyal customers, reduce churn rates, secure repeat business, and differentiate your brand. All these benefits rely on how you calculate loyalty points and manage reward offerings.

With smart loyalty software like Marsello, customer-centric rewards with consistently high ROI are now more feasible than ever. Here’s our detailed guide to building a loyalty program that resonates with your audience.

 


 

Get advice from a loyalty expert and start driving repeat sales.

Book a demo

 


 

Read more: 7 Steps To Building A Profitable Loyalty & Rewards Program

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    5 Tips for Tracking Social Media Sales

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    In this post, we’ll shed light on the key steps and best practices you must take to effectively track and measure sales you’ve generated via social media.

    Fact: social media is a major part of the lives of today’s consumers. No matter what type of business you run or who your target market is, chances are you have customers using various social apps and platforms.

    Social networks are so embedded in our daily lives that people are increasingly using apps like Instagram, Facebook, and TikTok to discover — and ultimately purchase — products. This is particularly true among younger consumers. Industry data shows that 55% of social media users ages 18 to 24 have purchased something through a social channel. 

    Social media is clearly a solid vehicle for sales, and if you’re active on platforms like Instagram, TikTok, and Facebook, then you’re likely attracting customers and sales through these channels.

    The question is, how many of your sales are actually coming from social media?

    If you find yourself shrugging your shoulders to that question, keep reading. In this post, we’ll shed light on the key steps and best practices you must take to effectively track and measure sales you’ve generated via social media

    By the end of this post, you’ll have a better understanding of the different ways to track sales on social, and you’ll walk away with tips and tools to do it right. 

    Let’s dive in.

     


     


    Quick Links:



     


    Why should you implement sales tracking on social media?


    As the saying goes, you can’t improve what you don’t measure. Actively implementing sales tracking on social media enables you to improve in the following ways.

    You can allocate resources more effectively


    Running social media accounts can take a significant amount of resources. Even if you aren’t actively spending money on ads, you and your team likely devote quite a bit of time and energy planning your posts, creating content, and publishing said content on social platforms. 

    Tracking your sales enables you to hone in on activities that are driving a positive ROI, so you can focus on doing more of what works. 

    That way, you can ensure you’re spending more time (and money) on sales-generating activities.

    It helps you refine your strategy


    In addition to enabling you budget resources more effectively, tracking your sales on social media helps improve your overall marketing strategy. 

    Let’s say you post a mix of Reels, Stories, and static photos on Instagram and notice that certain types of posts are better than others at generating sales. You can use that insight to create more content that resonates with your audience. 

    Measuring your social media sales can also tell you which channels are effective at generating revenue. If you find that you’re getting better results on Instagram versus TikTok, for example, then you can start prioritizing Instagram in your sales campaigns.

    You’ll grow your social media presence


    All of the above benefits lead to a stronger social media presence overall. When you’re able to focus your efforts on the platforms and tactics that matter, you’ll naturally connect better with your audience and gain more fans and followers.

     

    5 tips for tracking sales on social media


    Now that we’ve covered the why behind social media sales tracking, let’s look at how you can go about it. Here are a handful of tips to ensure your sales tracking efforts are successful.

    1. Start with a plan


    It can be tempting to just start posting straight away and seeing if any sales come through, but a haphazard approach to social media tracking could lead to missed opportunities, inaccurate data, and wasted time. 

    If you want to get the most out of your efforts, you need to lay the groundwork and plan accordingly. 

    Here are some of the details you need to iron out before launching your social media campaigns. 

    Time period. Map out the dates and times you’ll be running your campaign. This will make it easier to attribute sales that come through via social media. 

    Products and assets involved in the sale. What items will you be promoting? Do you have photos and videos of those products? Make sure you have the necessary assets ready beforehand so you can launch you campaign without a hitch. 

    Type of activities. Identify the specific activities or campaigns you’ll be running. Will you be working with influencers? Are you running an exclusive sale? Is it a “new arrival” type of campaign? The right method for tracking your sales will depend on the type of initiative that you’re running. 

    Social networks involved. Get clear on the social network (or networks) that you’ll be using. If you’re leveraging multiple platforms, you’ll need to tailor your efforts accordingly. 

    Resources spent. It also helps to track the time and money you’ve spent on your campaigns. Doing so will enable you to measure your social media ROI and determine whether or not the campaign is worth the effort and resources spent.

    All your marketing, in one place.
    Manage all your marketing campaigns in Marsello. Drive repeat sales with loyalty, send email & SMS campaigns, schedule social posts, set up automations, and more. Then track the impact of your marketing on sales.

    Start free trial

     

    2.Track social media sales using a special promo code


    A good way to measure social media sales is to use a dedicated promo code. This tactic is best used when you’re running a sale or partnering with an influencer to promote your products. 

    To implement this tactic, come up with a promo code that’s unique to a particular campaign or influencer and make sure the code isn’t used on other channels. These codes should be fairly easy to generate and track if you have the right ecommerce platform or marketing solution. 

    Once you launch your campaign, start looking out for transactions that contain the promo codes you created and use that data to track your sales. 

    We can see this in action in Lakanto Monkfruit Sweetener, a company that makes sugar-free sweets. Lakanto teams up with influencers like Nicole Cogan (@nobread on Instagram) to promote its products. 

    To attribute sales generated through this partnership, a specific promo code (i.e., “NOBREAD”) is used, and Nicole’s followers will get a discount when they enter the code at checkout. Meanwhile, Lakanto can track sales that resulted from the campaign by taking note of how many people entered the promo code on its website.

    no bread instagram post


    Promo codes are simple and easy to use (both for customers and the merchant). Just bear in mind that these codes also have some shortcomings. 

    For starters, promo codes may not always paint an accurate picture of sales. 

    If someone sees your product on social media but doesn’t use the code at checkout, then your system won’t be able to properly attribute that transaction. 

    In addition, if one of your brand partners decides to share their promo code outside of social media (e.g., their blog or during an in-person interaction) then this may distort the data around social media attribution. 

    Also, you can only use promo codes as a tracking tool if you’re running a sales or promotion. Customers typically expect discounts when entering a code at checkout, so if you aren’t running a sale, then you can’t really use promo codes as a tracking tool.

    💡 Pro-tip: Add promo codes to your social media posts in Marsello as one way to track sales and measure the dollar impact of your posts.

     

    3.Use special links and UTMs


    If you’re using Google Analytics to measure your web traffic, then UTMs (Urchin Traffic Monitor) can help you see which sources or campaigns are driving traffic to your site. 

    UTMs make use of parameters like website source, medium, and campaign to pinpoint where your visitors are coming from. These UTMs come in the form of special tracking codes that you attach at the end of a URL.

    They look something like this:

    https://www.example.com?utm_source=social-media&utm_medium=instagram&utm_campaign=holiday-products

    In the example above, the source of traffic is social media, the medium is Instagram, and the campaign is holiday products. 

    When you log into Google Analytics, you’ll be able to drill down on how many visitors are attributed to these parameters. 

    You can generate a UTM by heading to Google’s Campaign URL Builder. Just fill out the required fields and the tool will generate the link for you. You can then use that special URL in your corresponding campaigns and then start tracking.

     

    utms for sales tracking in social media


    If you aren’t using Google Analytics, you can opt for personalized social links instead. 

    Marsello enables you to create a custom “link in bio” page that you can include in your social media profiles. You can then track the number of people who clicked on the link to determine how many followers visited your site.

    link in bio marsello

    Links and UTMs allow you to measure page visits without the use of a promo code, so they can be helpful tracking tools when you’re not running a promotion. 

    However, one limitation of UTMs and links is they only track page visits, not sales or conversions. They can tell you how many people landed on a page and where they came from, but they won’t show you how many users completed a purchase — unless you’re using a tool like Marsello to track the entire buying journey.

     

    4. Ask your customers


    You can glean social media sales intel simply by asking your customers. At the checkout page, add a form field asking shoppers where they heard about you, and then have them select from a range of options. 

    From there, tally up the number of people who selected social media (or a specific social network — i.e., Instagram, TikTok, Facebook, etc.) and use that information to track your sales.

    This tactic is easy to implement, but it also has some downsides. For one thing, having an extra form field on the checkout page adds friction to the buying experience and may turn off some customers. 

    Additionally, some shoppers may opt to skip the question, so won’t be able to capture all the data you need.

    All your marketing, in one place.
    Manage all your marketing campaigns in Marsello. Drive repeat sales with loyalty, send email & SMS campaigns, schedule social posts, set up automations, and more. Then track the impact of your marketing on sales.

    Start free trial

     

    5. Use sales tracking tools


    While you can certainly track sales manually — i.e., by counting promo codes or tallying survey results by hand — these processes are cumbersome and can lead to human error and inaccurate data. 

    You’re far better off measuring social media sales with tools that can automate the process. Marsello, for example, streamlines social media sales tracking by connecting your POS and ecommerce sales data with your social media accounts. 

    From there, Marsello attributes a percentage of your revenue to a social media post containing a tagged product, UTM, or promo code.

    sales tracking marsello

    Here’s how it works:

    • Connect your social media accounts to your POS or ecommerce platform.
    • Create posts across Instagram, Facebook and TikTok then tag your products.
    • Use Marsello track and measure sales for a given time period.

     

    💡 Pro-tip: Measure revenue, orders, and average spend in Marsello to give you a clear picture of what social activities are actually contributing to your bottom line. This, in turn, helps you make smarter decisions that lead to more sales, profit, and followers.

     

    Bringing it all together


    You and your team likely spend a great deal of time and energy on social media, so you must ensure your efforts are put to good use. The best way to do that is to actively track your social media sales, so you can refine your efforts accordingly. 

    Need help doing just that? Marsello Social provides you with tools to easily publish social media content and track sales.

     

                

    Marsello: All your marketing, in one place.

    • Send email and SMS campaigns to customers
    • Create set-and-forget marketing automations
    • Schedule social posts 
    • Track the impact of your marketing on revenue
    • Build a customer database

    Start free trial

                                                                                                                                     

    How To Turn Social Media Engagement Into Sales

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    Here are three strategies you can use to take that engagement and convert followers into paying customers.

    Does your engagement convert? Learn how to find out 👇

    Social media engagement is a great metric for measuring the buzz around your brand. The average Instagram engagement rate across all businesses is around 1-2% per post (depending on where you look).

    So, if you’ve got 5,000 followers, the average business could expect around 50-100 likes on any given post. Video content generally sees a much higher engagement rate—that same business could be seeing around 300 likes on a video post. Carousels also receive higher engagement, as Instagram’s algorithm will show the same post more than once to the same follower.

    But engagement is not revenue, and it doesn’t necessarily even convert to revenue in the long run. If your posts don’t drive action, generate exclusivity, or create urgency, your audience may engage with you without ever making a purchase.

    So your next question should be: how do I turn engagement into dollars and cents?

     


     


    Quick Links:



     


    How do I turn engagement into revenue?


    When I talk to merchants, there's one thing I hear a lot: "My posts get lots of comments, good reach, and heaps of likes, but I just don't know if I'm seeing sales from them." It's a common concern—you're putting all this time and effort into creating content, but it's really hard to make that content sell.

    Here are three strategies you can use to take that engagement and convert followers into paying customers.

    1. Use Product Tagging to drive social sales


    To convert followers into customers, you want to take away every possible barrier to purchase. Don’t make your followers Google your website, then manually type a product into the search bar. Every time there’s an extra step, a percentage of followers will drop off the buying journey.

    Product Tagging is perfect for this. It doesn’t have to be on a “product launch” type post either, you can tag products on lifestyle imagery, competition posts, and more. You can even use “product” stickers to tag products in your Instagram stories too.

    Take advantage of every opportunity to tag a product.

    marsello-social-launch-tiles

     

    💡 Pro-tip: Using Product Tagging means you can measure the direct impact of your social posts on sales. To see it in action, connect your social accounts, POS and/or eCommerce platforms to Marsello and instantly see how your last 100 posts have contributed to sales.

    Learn more

     

    2. Create a custom link in bio landing page


    When you only get one link, make it count. Drive followers to your store with a branded link and customizable landing page for Instagram and TikTok.

    Having a centralized landing page means you can drive all your traffic to one page with multiple products, promotions and calls-to-action. There are lots of tools out there, from free, basic products to tools with advanced features and customization. The most sophisticated tools have the ability for merchants to add forms, buttons, media and more to a fully branded page.

    link in bio marsello

    Premium link in bio features.
    Marsello’s very own link in bio feature brings all the advanced customization you’re looking for to keep brand experience seamless.

    Learn more

     

    3. Plan campaigns and posts ahead of time


    Sometimes, even the best post with the most amazing offer and relevant call-to-action just won’t work. 

    Imagine this. You’re a retailer selling mountain bikes. You’ve also got a workshop and you sell replacement parts and accessories. It’s the middle of winter and things are quiet, but you know come spring all your customers will be wanting to replace their knackered bearings to hit the trails as soon as possible.

    You make a post offering half price bearings in-store hoping to see some service bookings off the back of it (thinking that you’ll be able to upsell when people are in the right frame of mind). But you don’t see any uptake so you assume you were wrong, and that the idea was a flop.

    Here’s how you could do it differently:

    You want to target existing customers, but also other riders in your local community. You know the large portion of your social followers are local mountain bike riders. So plan and schedule a series of posts each with different creative, and do a candid video post on your stories too. 

    You could build the hype by sending out an email or two as well to your local database. 

    Create a discount code people need to use in-store so you can track the impact of the campaign (I’ll get to that shortly). It might even make sense to send an SMS out as well, driving people to one of your social media posts for more info.

    social-email-announcement-tile-graphics


    All this planning can be on the back of an envelope:

    • Insight: There’s always a spring rush for parts and servicing because people leave it til the last minute, and the workshop is really busy
    • Objective: Sell bearings, drive foot traffic, and get people thinking about booking in a service early
    • Offer: 50% off all bearings (put a time limit on this for urgency-for example, “This month only”)
    • Target audience: Customers and other local riders
    • Channels: Social media, email and SMS
    • Success measure(s): In-store bearing sales, foot traffic increase, service bookings

    Once you’ve got your basic campaign plan, spend a couple of hours getting everything set up.

    • Create a discount code and/or UTM to track bookings from your campaign.
    • Use a social media scheduling tool to schedule campaign posts over your campaign time period.
    • Schedule an email blast to customers, and maybe a reminder email or two.
    • Schedule an SMS to reach people directly to their mobile (around 98% of SMS messages are opened, so it’s a great channel for a short, snappy and time-sensitive campaign).

    Taking a step back to plan means you can get your channels working together to increase the impact of your social media posts, and drive more sales.

    How do I know what posts generate sales?


    To understand how your engagement converts, you need a way to track sales that come from your social posts. This can be a bit tricky, so I've pulled together a handy list of ways to measure your results.

    Get a social media analytics tool to track sales


    The easiest and most effective way to track sales made from organic social media is to use analytics software that connects your POS, eCommerce, and social media data (you can do this all in Marsello).

    This doesn’t just track when someone clicks on a tagged product, it also tracks if someone likes, comments on or shares a post with a product tagged in it, and buys it later. This is called organic social media sales tracking.


    sales tracking marsello

    Using a tool like this, you can see:

    • What posts have generated the most revenue
    • Which creative type (images, videos, etc) leads to more sales
    • How many orders you get from social media over a certain period of time
    • Which social media platform works best for your business
    • What percentage of revenue comes from organic social media

    By tracking sales and revenue, and seeing what kinds of social posts and which channels work best, you can improve the performance of your accounts over time.

    Convert social followers into customers.
    Schedule, tag, post, sell. Start a free trial today and see it in action—Marsello automatically syncs your last 100 posts. Simply tag products in your posts, and see how many sales came directly from social.

    Learn more



    Include discount codes in social posts


    Discount codes are one of the simplest ways to see where traffic and sales are coming from. These have become popular for tracking sales from organic social media posts and campaigns, as merchants struggled to see the impact of their efforts in Facebook, Instagram, TikTok etc.

    Simply create a unique discount or offer code for each channel, and you’ll be able to track how many sales you generated from those posts.

     

    Use UTMs to track links back to your online store

     

    What is a UTM? UTMs (Urchin Tracking Modules) are short bits of code you can use to track how effective a campaign is. UTMs can track up to five parameters (aspects): campaign, source, medium, content and term.

    That might sound complex, but UTMs are actually incredibly easy to use. And unless you’re drilling into deep testing and measuring, you really only the first three parameters.

    The easiest way to show you how to build a UTM is by using an example.

    Say we are running a campaign that goes to http://marsello.com. We are using Facebook ads, and the campaign is to get sign ups for our social media scheduler.

    Let’s put that in simple terms:

    Campaign: Social Media
    Source: Facebook
    Medium: Paid Ads

    When you build your link, make sure you don’t use spaces. Instead, replace your space with a dash symbol (-). Aside from that, use only plain text for labeling (avoid hashtags, ampersands, percentage symbols or anything else that could break the link).

    Campaign: Social-Media-Sign-Ups
    Source: Facebook
    Medium: Paid-Ads

    Now, we want to add these to the link in UTM format.

    1. First, add a question mark (?). This indicates that the body of the link is complete, and Google Analytics, or your tracking tool, should read the following part as tracking information.
    2. Add “utm_campaign=” then your campaign name.
    3. Add an ampersand symbol (&). This tells your tracking tool that your campaign name is complete.
    4. Add “utm_source=” then your source. 
    5. Add another ampersand symbol (&).
    6. Finally, add “utm_medium=” then your medium. 

    It’s that easy! Here’s how ours would look:

    http://marsello.com?utm_campaign=Social-Media-Sign-Ups&utm_source=Facebook&utm_medium=Paid-Ads 

    For each different source or medium you want to differentiate, change the UTM parameters. For example, you might differentiate visitors coming from a Facebook source by medium. You could state “utm_medium=organic-post” or “utm_medium=story-video” to separate traffic coming from different parts of the platform.

    The more specific you go, the more you know what particular channel, content and post type works best. But it’s always good to have broader parameters too, for example, you will still want to be able to compare all Facebook traffic from all Instagram traffic.

    Final words


    If you're putting a lot of resource into social media, but aren't sure if all the likes and comments are actually growing your business, you're not alone.

    Start making your social media work harder by taking away barriers to purchase (product tagging, using a link in bio, etc) and track the results directly using UTMs, promo codes and sales tracking.

    It's also important to have a clear plan, while leaving some wiggle room in your calendar for jumping on trends as they come up.

    Looking for an all-in-one social planning, scheduling and sales tracking tool? Marsello provides you with tools to easily create, schedule and publish social media content.

     

                      

    Marsello: All your marketing, in one place.

    • Send email and SMS campaigns to customers
    • Create set-and-forget marketing automations
    • Schedule social posts and track the impact on sales
    • Track the direct impact of all your marketing on revenue
    • Build a customer database

    Start free trial

                                                                                                                                     

    Social Media Planning for BFCM: 7 Best Practices to Implement

    ClockIcon  READ
    We’ve put together a list of the top social media planning practices your brand should follow to attract and retain customers in the 2022 holiday season.

    Black Friday and Cyber Monday (BFCM) weekend is coming up fast (just where did 2022 go?) It’s high time for brands to begin planning for this massive, revenue-generating shopping event.

    179.8 million unique shoppers shopped in-store and online during the BFCM holiday weekend in 2021, despite the disruption caused by the COVID-19 pandemic.

    With 2022 seeing record rates of inflation and more cautious consumer spending, brands will need to pull out all the stops to wow customers this holiday season.

    Although still associated with shoppers streaming into store locations, BFCM weekend is becoming increasingly digital and mobile-first. According to Nosto, mobile outperformed desktop at 69% versus 31% when it came to product discovery and browsing, where social media emerges as a key channel. In fact, 54% of Gen Z shoppers and 58% of Millennials say that social platforms are better than online search for finding products and brands.

    In sum, a robust social media strategy is now essential for a profitable BFCM weekend.

    We’ve put together a list of the top social media planning practices your brand should follow to attract and retain customers this holiday season — and how Marsello’s brand-new social media toolkit can help.

     


     


    Quick Links:



     


    1. Use data to inform your BFCM initiatives and planning


    Not sure where to begin with your social media planning? A good place to start is to look into what strategies worked for your brand last year — and what didn’t. 

    Social media metrics such as engagement, impressions, click-through rate, website traffic, and conversion rate will help you to gauge the performance of previous initiatives and where you can build on this success. Likewise, learning from past mistakes, such as posting at the wrong time of day for your audience, is one of the best ways to set yourself up for a profitable BFCM period.

    social-launch-email-campaign-marsell-app-functionality-screenshotsArtboard 2 copy 2

    Using Marsello, look back on what kinds of posts generated the most sales over past campaigns.

    In addition to using your own data, don’t ignore the power of industry trends. Knowing what’s hot with social media users is a great way to stay innovative and serve up the content consumers want to see. 

    For example, short-form video is gaining traction across all social platforms in 2022, with 26% of social media marketers investing more in short-form video than any other content format. If your target customer belongs to the Gen Z demographic, this should definitely be in your BFCM toolkit.

     

    2. Iron out the BFCM promotions you’ll be running


    Running seasonal promotions is an essential part of BFCM, and your followers will expect you offer some compelling deals and discounts throughout the weekend. To maximize engagement with your social content, make sure you’ve planned out all the core details of your promotions, such as:

    The type of content. Are you using a single image, carousel, or video to publicize your promotion?

    The type of promotion. The size of the discount/offer, what products are included/excluded, etc.

    Length/timing of the promotion. How long the promotion is valid and whether you might extend it to increase conversions

    However, be careful not to make your social media feeds too promotion-heavy. Constantly pushing discounts over BFCM weekend can become boring and repetitive for your followers. Consider mixing up your feed with other types of content and putting aside some time to plan out your content streams. This includes promotional offers, gift inspo, and user-generated content.

    examples of holiday instagram posts

    Starbucks is a great example of a brand that posts a careful mix of content during and in the lead-up to BFCM. In addition to posting about their seasonal drinks range and limited-edition holiday cup promotions, its social media feeds also include user-generated content and question prompts designed to encourage engagement.

     

    All your Black Friday marketing. In one place.
    Add Marsello to your store now, and kickstart your Black Friday Cyber Monday campaigns with email campaigns, SMS, automations and more. Track the impact of all your marketing on sales, and measure your return on investment.

    Start free trial



    3. Create compelling images


    Consumers’ newsfeeds and inboxes are being inundated by promotions and discounts during BFCM weekend, trying to persuade them to drop everything and shop right now. But don’t join the race to the bottom by choosing the steepest discount possible; focus on creating eye-catching visuals that entice consumers to stop scrolling and check out your offer.

    To tap into those short attention spans, your images need to have a “wow factor” that’s pleasing to look at and primes people to explore what you have to offer.

    anthropologie example of a beautiful holiday post

    Known for its stunning social media feeds, Anthropologie does a great job at putting its followers in the mindset of holiday shopping ahead of BFCM. This fun visual swipe post allows Anthropologie fans to “turn on” the Christmas lights at one of their flagship stores — a clear sign of more holiday-themed content to come.

    💡 Pro-tip: You can crop and edit images right inside Marsello to create compelling, attractive content for your social media campaigns.

     

    4. Use a calendar to track and schedule your BFCM content


    It can be tempting to post all your social media content on the fly. But while there’s room for spontaneity in your content (for example, jumping on a trend while it’s still viral) you don’t want to leave your BFCM content to chance. 

    Peak season is a busy time for brands, and it’s time-consuming and stressful to plan and post content as you go. More importantly, a scattergun approach also runs the risk of missing key promotional opportunities during Thanksgiving weekend.

    Using a calendar tool is a great way to maintain control over your BCFM social media planning. Marsello allows you to add individual social posts to your calendar and add relevant information such as launch dates, copy, or associated promotions, ensuring that your team always knows what’s in the pipeline.

    marsello-social-launch-tiles-3

     

    5. Keep your marketing collateral organized


    BFCM is one of the biggest revenue-producing periods of the year for retailers, so your business is likely to be using more social media collateral in the form of graphics, videos, and product photography during this period to increase engagement. 

    With so much revenue on the line, it’s vital to make sure your marketing team has a system to store and organize these assets. After all, nobody wants to lose a vital photo or video right before posting!

    social-launch-email-campaign-marsell-app-functionality-screenshotsArtboard 2 copy 3-1

    The Marsello media library is an excellent way to keep all of your BFCM collateral in one place where it’s easily accessible to your team. The media library connects seamlessly with all major storage systems, including Google Drive and Dropbox, so you can retrieve your assets as you need them for emails, social media, and other campaigns being run by Marsello.

    All your Black Friday marketing. In one place.
    Add Marsello to your store now, and kickstart your Black Friday Cyber Monday campaigns with email campaigns, SMS, automations and more. Track the impact of all your marketing on sales, and measure your return on investment.

    Start free trial

     

    6. Keep your BFCM initiatives consistent across all platforms


    If you’re planning on running a big promotion (or several) over BFCM weekend, it makes little sense to only publicize your offer on a single platform. To drive as much traffic as possible to your website and storefronts, all of your marketing channels — including social media, email, and even your store signage — need to be working together in harmony. 

    It’s easy to say that the more channels you use, the stronger your promotional strategy will be. But it’s not quite that simple; more channels also means more time spent making sure that your messaging stays consistent. 

    Here is a great example from Sephora, which successfully reinforced last year’s Cyber Monday sale across email and social media by using the same graphic and messaging:

    sephora cyber monday sale post

    sephora cyber monday sale campaign

    Marsello’s campaign calendar makes it easy to achieve coordinated campaigns like Sephora’s. Social media, SMS, and email can be planned within a single dashboard to streamline your social planning and ensure consistency across channels.

    7. Optimize your BFCM social media accounts for sales by leveraging built-in social selling features


    Social media is no longer simply a marketing channel designed to direct shoppers to where the action takes place. Thanks to the birth of social commerce, many platforms now boast a range of tools that enable users to purchase products directly within the app.

    Social commerce has a range of benefits for both shoppers and brands during BFCM. If prospective customers see a great holiday gift option, they’re going to want to move fast. By shopping directly within an app, consumers only have to tap the product tag to be taken directly to the product page and checkout. Redirecting shoppers to your ecommerce website, where they’ll need to find the product themselves and place it in their cart, takes extra time and effort and may result in them abandoning the purchase.

    In addition to speeding up the checkout process, social selling makes your product catalog easy and seamless to navigate. For example, Walmart has created a range of collections in its Instagram store to address different shopper needs:.

    walmart instagram store collections

    Collections have a ton of applications for BFCM weekend. Consider catalogs such as “‘Top holiday picks for under $30”’ or “‘red-hot Black Friday deals” to optimize your sales strategy and drive consumers toward high-value merchandise.

    💡 Pro-tip: Tag products and collections in your social posts in Marsello to see potential generated sales.

     

    Final words


    Black Friday and Cyber Monday are among one the most important holiday shopping weekends on the calendar, and brands need to begin their social media planning early to maximize the promotional opportunities available. By following the social media planning tips above and utilizing Marsello’s social media tools, you’ll be well-placed to make your BFCM 2022 the best yet.

     

        

    Marsello: All your Black Friday marketing, in one place.

    • Send email and SMS campaigns to customers
    • Create set-and-forget marketing automations
    • Schedule social posts
    • Track the direct impact of all your marketing on revenue
    • Build a customer database

    Start free trial

                                                                                                                           

    Top 8 Marketing Hacks For Black Friday/Cyber Monday Campaigns

    ClockIcon  READ
    Here are the Top 8 Black Friday & Cyber Monday marketing strategies that big-box retailers use — and don’t want you to know.

    BFCM marketing hacks big-box retailers don’t want you to know 👇

    Black Friday is creeping up fast. But while we’re still a decent way out, here are 8 of the best marketing tips you should be considering in your campaign planning.

    These strategies are used by some of the world’s biggest and most successful retailers; however, they’re all actually incredibly simple. Some of these tactics can even wait until the last minute (if you’re “deadline driven” like I am!) and they’ll still be high impact.

     


     


    Quick Links:



     


    Run pre-Black Friday sales


    Black Friday is BIG. It has global awareness, with merchants participating in countries in and outside of Canada and the US (even those that don’t recognize Thanksgiving). Needless to say, it’s on everyone’s minds for months in the lead up.

    So—why not run sales before the actual day? Savvy retailers are using this strategy to capitalize on the hype without shouting in the crowd at peak time.

    For example, Rubber Monkey, a technology retailer, runs a VIP Black Friday “Countdown Campaign” with several pre-Black Friday sales ahead of the big date.

    Blog-Graphics-BCFM-Rubber-Monkey-3-waves

    Rubber Monkey’s lead-up campaign emails included dates for not one, not two but THREE separate Black Friday sale dates.

    Alternatively, in lieu of running a multi-stage sale, simply send Black Friday / Cyber Monday previews. Tease your database, give them a sneak peek of what’s around the corner, and build hype.

    You can also include a Google Calendar or Outlook Calendar invite, so your subscribers have your sale top of mind and receive automated reminders directly from their calendar app.

     

    Segment your database for personalized deals


    A blast to all customers is not always an effective marketing strategy. Instead, segment your database by type of products purchased. For example, if you’re a technology retailer, you could create segments for “Photographers”—people who most frequently buy photography equipment.

    Send targeted Black Friday or Cyber Monday campaign emails and SMS messages to those segments, adding only products from their preferred category. Of course, you can add a “See All Deals” call-to-action below your product blocks to pull in more general interest to the broader sale categories.

    For higher impact, start strong with a personalized subject line:
    “Alice, get 60% off everything photography! 🤑📸”

    cyber-monday-technology-campaign

    I love how this Cyber Monday email jumps straight into product collections from the category I’m most interested in: photography.

     

    All your Black Friday marketing. In one place.
    Manage all your Black Friday and Cyber Monday campaigns in Marsello. Schedule social posts, emails, SMS campaigns and more. Then track the impact of your marketing on sales.

    Start free trial



    Add urgency with a countdown timer


    Ah, the old FOMO trick. Let your subscribers know when your sales start, so they don’t miss a deal. Using a dynamic, live countdown timer in your emails will capture visual interest, and drive urgent action.

    black-friday-email-countdown

    Drag-and-drop the countdown timer into your campaigns with Marsello’s email builder. You can customize your timer to match your brand and campaign specs. I also love how this email uses a ‘Wishlist’ call-to-action—getting subscribers engaged with the sale in advance.

    Leverage the 98% deliverability of SMS


    Did you know…

    • 75% of consumers want to receive text messages with special offers
    • 90% of SMS messages opened within three minutes of being received

    Scott Home Delivery uses SMS for their Black Friday campaigns, with incredible results. Some of their campaigns see up to a 26% click rate—much higher than the average email click rate (around 3%).

    example-of-a-black-friday-sms-campaign

    When used in the right context, SMS remains one of the most powerful marketing tactics on the block. The key? It’s really not rocket science: it all comes down to following the tried-and-true recipe for success:

    • There’s one clear offer (50% off)
    • Urgency (Only a few days left!)
    • A CTA and link to drive conversions
    • And there are instructions for how to opt out (a necessary inclusion)

    Pro-tip: Get even more personalized and use merge tags in your SMS campaigns—include loyalty points balance, first name and more.

    Send product recommendations with a discount code


    You don’t have to discount specific products, but you could offer a discount code. That way, you can send an email with product recommendations to your customer database, and offer a discount code so they can go and spend it on the products you know they’ll love. 

    Marsello’s product recommendation algorithm uses the same model as Amazon. We use customer purchase data to determine which products they’re most likely to be interested in buying next.

    You can drag-and-drop this pre-built block into any of your Black Friday campaign emails. Beyond that, we recommend using this feature in all kinds of email campaigns!

    drag_drop_recommend_products

    Here, we show how you can drop the block into an automated Happy Birthday email using Marsello’s super easy email campaign builder.

    All your Black Friday marketing. In one place.
    Manage all your Black Friday and Cyber Monday campaigns in Marsello. Schedule social posts, emails, SMS campaigns and more. Then track the impact of your marketing on sales.

    Start free trial

     

    Run VIP offers to your existing customers


    Send exclusive Black Friday deals and offers to your existing customers. Rubber Monkey sent customers an extra $10 voucher to use over and above their Black Friday purchases.

    Black-Friday-Cyber-Monday-Rubber-Monkey-VIP-voucher

    Rubber Monkey’s additional VIP Black Friday offer to their email subscribers.

    Set up automated Abandoned Cart reminders


    Don’t let those Black Friday deals sit idly in customer carts. Use marketing automation to set up automatic abandoned cart reminders. Use triggers to set up a delay—around one hour is usually about right for a one-day sale, but you can test what works best with your customer database.

    automated-abandoned-cart-reminders-black-friday-cyber-monday

    Take a look at Ozzie Collectables’ Abandoned Cart campaign, for example. This series of three emails has an overall conversion rate of 28%. In fact, automated email flows alone are generating 38% of their total revenue.

    Ozzie-Collectables-Recover-My-Cart-Email-Automation-Flow-1

    Marsello has a collection of pre-built email templates you can add to your Abandoned Cart flows. You can even tweak your flows in the days around Black Friday / Cyber Monday to include more relevant, urgent messages.

     

    All your Black Friday marketing. In one place.
    Manage all your Black Friday and Cyber Monday campaigns in Marsello. Schedule social posts, emails, SMS campaigns and more. Then track the impact of your marketing on sales.

    Start free trial

     

    Last but not least, build your customer database!


    Think bigger than Black Friday. Collect customer details over these heavy traffic periods to build your list of re-marketable customers.

    According to the Pareto principle, around 80% of a business’s profits come from just 20% of its customers. That means regular customers, who buy from you again and again, are worth A LOT to your business. And they’re cheaper to market to as well.

    The other 80% of your customers only make up the remaining 20% of your profits. These customers include your one-time shoppers, infrequent visitors, and any other more casual consumers.

    It’s more expensive to acquire new customers to retain them, so make the most of your campaign spend and continue selling to Black Friday participants long after November has been and gone.

    Read next: Social media planning for BFCM - 7 Best Practices to Implement

        

    Marsello: All your Black Friday marketing, in one place.

    • Send email and SMS campaigns to customers
    • Create set-and-forget marketing automations
    • Schedule social posts and track sales
    • Track the direct impact of all your marketing on revenue
    • Build a customer database

    Start free trial

                                                                                                                         

    SMS Product Update: 50% Reduced Rates, Automations, Merge Tags, and Emojis

    ClockIcon  READ
    We've introduced new features to make SMS marketing smarter and improve ROI, including SMS automation templates, automation library, merge tags and emojis

    “I didn’t have time to write you a short letter, so I wrote you a long one” - Mark Twain

    Apparently, Mark Twain hadn’t heard of pre-built SMS templates, something we’ve just added to Marsello alongside the automations template library, emojis, merge tags for SMS, and to make your SMS marketing go even further cut SMS rates by up to 50% on some pricing plans.  

    Here's what's new in SMS:

    We’ve cut SMS rates by 50%*, doubling SMS credits across some plans

    We’ve cut SMS rates by up to 50%* on some pricing plans, starting from our base $25/month plan. That means some plans will receive more than double the SMS credits per dollar.

    Previous pricing  New Pricing 

    Cost

    Credits

    Cost

    Credits

    $25.00

    700

    $25.00

    1,500

    $50.00

    1,500

    $50.00

    3,500

    $100.00

    3,100

    $100.00

    8,500

    $200.00

    6,500

    $200.00

    18,000

    $300.00

    10,000

    $300.00

    30,000

    $400.00

    13,700

    $400.00

    41,000

    $500.00

    17,500

    $500.00

    52,000

    $600.00

    21,000

    $600.00

    63,000

    $800.00

    29,500

    $800.00

    84,000

    $1,000.00

    38,000

    $1,000.00

    105,000

    $1,250.00

    49,000

    $1,250.00

    132,000

    $1,500.00

    60,000

    $1,500.00

    158,500

    $1,750.00

    71,500

    $1,750.00

    185,500

    $2,000.00

    83,000

    $2,000.00

    212,000

    SMS credits can be added to your Marsello Pro Plan from your account and will be added to your monthly subscription from the date you select your monthly SMS plan. 

    New SMS plans are available now, and existing plans will be updated as your monthly plan rolls over.

    Add SMS


    Pre-built SMS automation templates

    Sometimes you need to get a message to your customers that is short, sharp, and to the point. That’s where SMS comes in, the perfect communication tactic to drive action quickly. But saying less isn't always that easy, so we’ve introduced over 20 new pre-built SMS templates, including loyalty program messages, refer friend requests, Google Review requests, and more.

    Automation Template Library 

    You can now access all your email and SMS templates in the Automation Template Library. You can search the Template Library by communication channel, campaign type, industry and more. As you build out your SMS automation templates, and we add more, you’ll be able to deploy any SMS automation in just a few clicks. 

    SMS Automations

    Oh, and by the way, we’ve already added 10+ SMS automation templates to the library which you can access now. 

    Loyalty Notifications now in Automations Library

    We’ve added automated loyalty points notifications for SMS, and migrated all loyalty points notification templates to Marsello’s Automations Library. This allows you to track all sends, opens, and clicks.

    Plus, enjoy the new emojis and merge tags! 

    Even short messages should be personalized, so we’ve introduced merge tags in SMS automations and campaigns. Merge tags enable you to include the recipient's own details in the messages you send them, including first name, last name, loyalty points balance and VIP tier. We’ve also added emojis, so you can set the tone of your message without saying a word. 

    Want to get started with SMS, but not sure how? Take a look at the Marsello help center for practical step-by-step guides for setting up automations and campaigns. 

    *Note: 50% discounted rate is based on a regional send to the United States and priced in USD.

     

    Cutting Costs? 3 Marketing Strategies You Can’t Afford To Drop In A Recession

    ClockIcon  READ
    Marsello CEO Brent Spicer discusses the state of the global economy, and how a market slowdown presents opportunities for independent businesses.

    We talked to Marsello CEO Brent Spicer about the state of the global economy, and how a market slowdown presents opportunities for independent businesses.

    Merchants, particularly small business owners, want to know: what will a recession mean for my business?

    There’s no doubt about it—the economy is very volatile at the moment. We’re feeling the effects of this through high inflation.

    The rise has been in large part driven by pent-up consumer demand after the pandemic and supply chain issues caused by China’s lockdowns and the Russian invasion of Ukraine.

    “These events have caused global inflation rates to spike,” Marsello CEO Brent Spicer explains. “Central banks worldwide have a singular objective at the moment: to control and limit inflation. This reduces market liquidity. As interest rates rise, the cost of borrowing goes up. Before, capital was effectively free. Now, it is very expensive.”

    Spicer believes the global economy will continue to slow, but the question is—how much and for how long?

    This slowdown is only just starting to cut through to the general economy and consumers. As we are all aware, this will have a big impact on consumer spending and, in turn, retail and hospitality businesses.

    Adding to this, low unemployment is making it really difficult for these businesses to attract staff. “We’re seeing signs of this already,” says Spicer. “Hospitality businesses and retailers offering well above minimum wage, but still struggling to get job applicants. The problem we’re seeing is not the pay, it’s a labor shortage.”

    All this means small businesses are in for some challenging times.



     


    Quick Links:



     


    How can my business thrive through a recession?

     

    Put simply, brick-and-mortar businesses have been through a lot in the past few years. Lockdowns and staff illness have forced shop closures and put pressure on margins.

    To make it through, businesses had to adapt, pivot, and try new sales and marketing tactics—fast.

    We saw so many different innovative approaches come out of the pandemic. 

    Hospitality businesses took the opportunity to expand to e-commerce, subscriptions, and home deliveries. Retailers pivoted to create new products (such as masks!), run virtual product demos, and set up processes for contactless pick-up and delivery. Others focused on buckling down and building their brand’s community, looking ahead at the long-term game.

    We’ve learned a few things from past recessions too. We know for certain that there will be business who come through stronger than ever. 

    So what will it be that sets them apart from the rest? How will they not just survive, but thrive?

    1. Future-proof with technology

    Independent retailers and hospitality businesses taking advantage of technology will be the ones who thrive.

    Back in 2008, the Global Financial Crisis accelerated the growth of e-commerce. As e-commerce platforms became more accessible, smaller businesses were able to leverage online ordering—rather than needing huge budgets to build custom websites.

    E-commerce gave consumers a way to find better deals further from home, and have them delivered within a few days. So it was the perfect storm for e-commerce, and those consumer habits just took off.

    “The Global Financial Crisis hugely impacted the mindset of consumers,” says Spicer.
    “Consumers were extremely price-sensitive, substituting premium goods for cheaper-name brands. Luxury goods were out of the question for the average household. Shoppers wanted value, and they started shifting online to find the best prices available.”

    From the GFC, a whole new breed of small business was born: small business that was tech-forward, even tech-led. This quickly became the norm—Shopify (e-commerce), Lightspeed Retail (point-of-sale), and Xero (accounting software) were among some of the tech companies that helped these businesses thrive. 

    And those who saw the opportunity in software for small business and leaped on it were in a better position to recover and grow as consumer confidence improved.

    Looking ahead, we predict a massive opportunity for businesses to lean on AI and algorithmic learning. For example, ​​algorithimically-determined product recommendations make up around 35% of Amazon’s total revenue.

    Even the simplest AI tactics can be very effective at generating revenue. In Marsello, we have a template product recommendation block merchants can drop into email campaigns and automations. If you’re paying to send emails, text messages or ads, you want to be delivering the most targeted, personalized content to make every dollar count.

    We’re also seeing massive opportunities for businesses to get a full overview of their data. That means streamlined, consolidated tech stacks, that house data in one, central place. This reduces the risk of creating “data silos”. A data silo is created every time you introduce a new tool that takes time and resource to export data and re-upload it somewhere else. For example, if you have to manually export your sales data and upload it to your email.

    2. Double down on smart marketing

    Most companies cut costs during a recession and marketing is usually the first chop. But now is not the time to ditch the marketing efforts.

    According to Harvard Business Review, businesses who spent more on marketing actually did better through the GFC

    It makes sense—if you can maintain your marketing budget (or even increase it) while others are cutting back, your comparative marketing impact will increase by default.

    However, your marketing does need to get smarter.

    There’s a term that merchants, entrepreneurs, and business owners need to get familiar with: capital efficiency. That is, any activity you’re putting dollars into needs to generate a return on investment. 

    Measuring your activity is extremely important—it will help you reallocate budget to get the best results from your dollar. If you can’t measure the direct impact of marketing on sales, you risk cutting marketing spend on channels or tactics that are actually delivering return.

    The problem is that revenue generated from marketing is notoriously difficult to track and measure. Merchants often have to rely on vanity metrics to prove their marketing works—metrics like the number of Instagram followers, email open rates, or Facebook engagement. 

    Smart marketing, on the other hand, is directly attributable to sales. It means your marketing tools and sales platforms (point-of-sale and e-commerce) are all sharing data with one another.

    It also means collecting details from every person who makes a purchase, so those sales and marketing data points can be connected to a customer profile. At every opportunity, you should be adding customers to your database.

    “This was proven to be particularly important through COVID. Our top-performing retailers through the height of the pandemic were those that had the biggest databases that they could re-market to, especially when stores were closed consumers could only buy online,” says Spicer.

    3. Build relationships with your customers

    Independent businesses who prioritize customer relationships will fare better through a recession, and will see much faster recovery down the line.

    Brands competing on price to survive a recession will lock themselves into a dangerous loop. 

    First, they’ll struggle with tight margins as they cut prices to be competitive with retail giants. Second, they will attract customers who make purchasing decisions solely on low prices—these customers will not be interested in building a loyal, long-lasting relationship with them. This will make post-downturn recovery hard too (price-sensitive consumers are fickle and will happily shop elsewhere, rather than sticking around to help small businesses grow).

    “Businesses who are able to maintain and nurture their customer relationships through a recession generally have less debt going into the downturn,” explains Spicer. “Merchants who are highly indebted will be hit too hard with interest rates and will have to make concessions in customer experience—simply because they need to cut costs.”

    But those merchants who can strike a balance between strategic investment and servicing their debt will see faster recovery as the economic conditions settle.

    Here are a few ways you can invest in your customer relationships:

    • Keep your focus on knowing exactly who your customers are, why they chose your brand. Asking for feedback is a really important part of this. Feedback gives you insight into your overall customer sentiment, and shows you how that’s tracking over time.
    • Be true to your business’s core values and mission—conscious consumers will stretch budgets for a greater cause if they can afford it, even if times are tough.
    • Reward customers who keep coming back. Did you know that around 80% of a business’s revenue comes from the top 20% of their customers? All the more reason to start a loyalty program, leverage the value of your existing database, and offer incentives for repeat purchasing. 
    • Engage your customers and wider community on social media. Keep activity consistent by posting regularly, running polls or competitions, and sharing more candid video content on TikTok or Instagram stories.

    Key takeaways:


    • Invest in technology to future-proof your business. Find ways to streamline, personalize and automate marketing with technology. For example, consolidate all your marketing tools, or leverage technology such as AI for advanced product recommendations.
    • Double down on smart marketing. Make sure you can track and report on sales generated by every marketing activity as much as you can. This will help you work out where you can cut costs. If you don’t have visibility on results, you might be cutting a key lead generator that could cost you in sales down the line.
    • Keep your focus customer-centric. Don’t lose sight of what’s most important—building a database of loyal customers who come back again and again. Action points might include: implementing a loyalty program to reward your top customers, asking for feedback after a purchase, and leveraging social media to engage with your community.                                                                                                        

    SMS: Have you forgotten about this powerful marketing tactic?

    ClockIcon  READ
    Used in the right context, SMS is a truly powerful marketing tactic. The key? It all comes down to following the tried-and-true recipe for success.

    SMS might feel like a throwback, but savvy business owners are still using this direct, punchy channel to drive revenue.

    There are an overwhelming number of marketing and advertising channels these days. You’d be forgiven for thinking you have to invest in every latest and greatest platform or social media app to reach your audience.

    Email, SMS, Display Ads. Snapchat, TikTok, Facebook, Instagram, Pinterest. Each one of these has taken the advertising world by storm at some point. 

    Of course, as business owners and marketers, we need to keep our finger on the pulse. But we also need to step back and think—Who is our customer? What is the purpose of this campaign? What channel is the most effective and appropriate way to deliver this message?

    Let’s explore examples of when SMS might be the most effective channel for your campaign. Together, we’ll look at how businesses across different industries can see success from SMS (including several examples of real merchant campaigns) and round off with some inspiration and ideas for SMS campaigns.



     


    Quick Links:



     



    SMS-Relaunch-Man-on-phone

    “I've got to look twice and go—Is this actually real?

    – Daniel Pantaleo, Pinjarra Bakery

    No, this is not a line from a 2am infomercial.

    This is a real quote from a real Marsello merchant who couldn’t believe the results he saw when he sent an SMS campaign.

    There’s a common misconception out there about SMS—that it’s a spammy, outdated marketing channel. However, SMS is often misunderstood.

    2 things you must understand before you try SMS

     
    • It works best if the offer is time-sensitive, so if your campaign doesn’t drive urgent action you won’t see as much impact.
    • It has a high delivery rate (98%) but that doesn’t mean people who open it will engage. Your message must be enticing, concise, and clear.

    Think about the SMS messages you get that are helpful, and those that aren’t. It’s highly likely that the most helpful ones are transactional - an update on a parcel delivery, for example.

    The least helpful SMS messages are probably generic promos - a hairdresser you went to once, over two years ago, who keeps blasting you with offers that aren’t relevant to you.

    The trick is to make your offer as personalized and urgent as possible, so much so that it’s as helpful and welcome as a transactional SMS. Maybe even more so.

    The best SMS campaigns we’ve seen yet

    Hospitality: Pinjarra Bakery


    Every week, Pinjarra Bakery invent a wacky meat pie flavor. They’ve been doing this for years. But one day one of the owners, Daniel, decided to try this offer out with an SMS campaign.

    Pinjarra-SMS

    Simple right? 

    50.1% of those SMS messages sent converted to a sale. That’s HUGE.

    Here’s why it worked:

    • It’s urgent. 
    • It was sent just before lunchtime.
    • It was sent to regulars (those most likely to be closest to one of their stores).
    • It includes the merchant name (too often, SMS campaigns leave this key element out!)

    SMS was the perfect tactic for this campaign. The time was right, the audience was right, the offer was right.

    We were on a call with Daniel, and he told us he just couldn’t believe it. The revenue Pinjarra got from an SMS that took a few minutes to write and send was astonishing.

    Daniel could define the perfect audience using Marsello’s custom segmentation. He used the built-in SMS wizard to make sure the SMS met best practice. Then he was easily able to test and measure the direct impact of his first SMS campaigns on revenue.

    He saw it worked. Now, SMS is becoming an integral part of their marketing strategy.

    Like many merchants, Daniel is keen to keep his business up to speed with marketing tactics and technology.


    Retail: Scott Home Delivery


    Scott Home Delivery uses SMS for time-sensitive campaigns, with incredible results. Some of their campaigns see up to a 26% click rate — much higher than the average email click rate (around 3%).

    Scott-SMS

    The two campaigns above are amongst the top performers; however, Scott Home Delivery regularly uses SMS for exclusive offers and limited-time-only campaigns. In fact, SMS makes up more than 40% of all revenue generated from their Marsello marketing campaigns. 

    Both of these campaigns follow a tried and true formula:

    • The sender’s brand name is stated upfront for immediate recognition
    • There’s one clear offer
    • One call-to-action
    • Urgency
    • A link to drive conversions
    • And there are instructions for how to opt out (a necessary inclusion)

    Using this recipe, Scott Home Delivery has found that SMS is an even more powerful marketing tool than email.

     

     

    Did you know? 

    According to Business.com, SMS messages have an average response rate of 45%, compared with an average email response rate of just 8%. Why? When we’re given a strict character limit, we drill down to the essence of the marketing message and give a single, clear call-to-action.

     

     

    Is SMS right for my business or industry?

     

    Hospitality

    The benefits of SMS are abundant in hospitality. SMS is well-suited to last-minute discounts and exclusive or limited-time offers—all great tactics for restaurants, cafes, and bars. Location segmentation can provide relevant offers to the right audience, and scheduled sends can ensure the messages are delivered at the right time.

    Retail 

    SMS is widely used in transactional retail communications. Delivery updates and other important transactional messages are a common use of this direct channel, as emails can get lost to spam filters. However, there are also wider marketing use cases for SMS in retail. One example is using SMS as part of a loyalty or customer marketing strategy: using the channel to provide VIP offers, exclusive discounts, loyalty points updates, and more.

    Grocery

    SMS works well as a direct channel for transactional communications such as delivery updates. But, like retail, grocery stores can also use SMS as a broader loyalty and customer marketing channel. Small-to-medium grocery stores can use SMS to enhance their loyalty programs and provide a rich, personalized customer experience.

    Healthcare & Pharmacy

    SMS has a high deliverability rate (98%), and most messages are read within minutes. This makes SMS the perfect tool for important transactional messages such as script updates and appointment reminders.


    Want to future-proof your marketing?

    Jump onto a call with us. We’ll listen to your goals, learn about your business, and help you set your marketing strategy in motion.

    Book A Demo

                                                                                      

    Some SMS campaign ideas to get you started

     

    1. Send a Personalized ‘Welcome’ Message

    When customers sign up to your marketing list or loyalty program, welcome them and thank them for joining. You can even send a discount code or freebie for signing up—see how Taco Medic do this with huge success.

    2. Send Time-Sensitive Abandoned Cart Reminders

    We know that the best SMS campaigns have a clear call-to-action, and are time-sensitive. Ozzie Collectibles uses automation to remind shoppers about their abandoned cart, but adds in a follow-up email that their cart will only be saved for a limited time. This adds urgency and increases conversions.

    3. Deliver VIP Offers

    Use SMS to promote exclusive offers to your loyalty customers, or other customer segments. This could include exclusive access to new product releases, invitations to closed events, discounts to mark special occasions, or any other time-sensitive offers.

    4. Run Customer Feedback Campaigns

    Every once in a while, send an SMS with a short poll or survey (as best practice, offer an incentive for a higher response rate and more engaged, thoughtful responses). Customer feedback is highly valuable—you can get a temperature check on your customer base, and catch negative feedback before it turns into a negative review. You can also gain more insights, such as consumer preferences or market trends.


    Give your SMS campaigns new life with Marsello

     



    Start free trial

     
     
     

    4 Simple Marketing Automations For Easy Revenue Wins [With Examples]

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    In this article, we’ve compiled a list of four marketing automations you can set-and-forget to generate a stream of consistent, predictable revenue.

    “Marketing automation” is a buzzword at the moment—but we’ve actually been automating productive processes since the 1940s, or even earlier. 

    The term “automation” was coined by D S Harder, an engineering manager working at Ford Motor Company in 1946. For a long time, automation was limited to physical processes in manufacturing, but automation later entered the digital sphere with the rise of computers.

    Automating human skills, labor, and even intelligence has revolutionized the way we work. On the flip side, it’s also been positioned as a threat to jobs. However, this fear is as old as automation itself—the reality is that it has augmented productivity, vastly increased our knowledge of what’s possible, and only increased demand for human labor.

    In this article, we’ve compiled a list of four marketing automations you can set-and-forget to generate a stream of consistent, predictable revenue.

    These automations work across a mix of online and in-store, and can be tailored to your industry and business goals.

    “[Automation is] really great because it kind of just churns in the background. Once you set it up correctly, it just goes and it looks after itself.”
    – Daniel Pantaleo, Pinjarra Bakery


     


    Quick Links:


     


     


    1. Welcome new customers

     

    If you sign up customers to your marketing list or loyalty program, give them immediate value with a thank you gift. This will make a great first impression, introduce them to your brand, and encourage them to keep coming back for more with product recommendations and exclusive offers.

    Example: Federation


    Federation’s ‘Welcome’ campaign saw a 19% conversion rate in just over 5 months. Almost 50% of the total revenue generated by their automated campaigns is directly attributable to their welcome automation.

    Federations automated Welcome email overlaid on a black background

    How it works:

    1. Shoppers create a customer account with Federation +
    2. They immediately receive a welcome email offering them 10% off their next purchase.

    Example: Taco Medic


    Taco Medic has nailed their welcome email, and the results speak for themselves. This email is by far their most profitable automation.

    3-Marketing-Automations-Blog

    How it works:

    1. A customer signs up for their Mates (loyalty) program. They can sign up at POS, or by scanning a QR code in-store and filling in their details—it’s a simple, frictionless action.
    2. The sign-up triggers an automated email offering them a free taco, and giving them more incentives to refer a friend.

    Further reading: Delight customers with WhatsApp automations

     

    2. Bring back lost customers

     

    If you collect customer purchase details, you get visibility over when they haven’t been back in a while. This allows you to trigger an automation to win them back. Motivate repeat purchases with a ‘win back’ campaign that offers discounts that are too good to ignore.

    Example: Pinjarra Bakery


    Pinjarra Bakery’s most successful automation by far is their ‘win-back lapsed customer’ flow.

    3-Marketing-Automations-Blog2

    How it works:

    1. Pinjarra Bakery uses Marsello to note when any customer who is part of their loyalty program and who hasn’t visited in 3 months.
    2. Those customers are automatically sent an email with a $10 voucher to incentivize them to come back.

    “That automation itself has almost generated close to $100,000 in extra revenue for us. So I don’t mind giving a $10 voucher away if that’s going to be the result.”
    – Daniel Pantaleo, Pinjarra Bakery

                                                                     

    3. Abandoned cart notifications

     

    Send a friendly reminder to customers if they abandon their cart. This acts as a friendly reminder for your customers to come back to your store and complete their purchases. 

    Pro tip: If a customer doesn’t convert from one email, consider adding another email with a discount or free shipping to further incentivize the purchase.

    Example: Brandini Toffee


    Since Brandini Toffee first created automated campaigns, they have seen as much as a 583% increase in attributable sales. Their most successful automation is their ‘Abandoned cart’ flow—it makes up 95% of the total orders generated by automated campaigns.

    Brandini Toffees abandoned cart email campaign on a mustard yellow background

    How it works:

    1. Shoppers add items to their cart on their e-commerce store, but don’t follow through to purchase.
    2. An automated email triggers with a friendly reminder and a few extra product recommendations.

    Example: Ozzie Collectables

    The team at Ozzie Collectables are wizards at automation—and certainly know how to keep customers coming back. In fact, automated email flows alone are generating 38% of their total revenue.

    Ozzie Collectables’ most successful automation is their Abandoned Cart campaign, which is made up of three emails reminding customers about the products in their shopping cart. This series has an overall conversion rate of 28%.

    Ozzie-Collectables-Recover-My-Cart-Email-Automation-Flow

    How it works:

    1. Shoppers add items to their cart on their e-commerce store, but don’t follow through to purchase.
    2. One hour after the cart is abandoned, a reminder email is triggered (this first email has the highest conversion rate in the series).
    3. Later, two more emails are delivered to drive further sales with urgency (“We can’t hold them much longer!”).

    4. Automated birthday offers

    Birthday automations are some of the most successful campaigns we see at Marsello. It works best when you have an understanding of your average order value, so you can offer the most attractive incentive possible while still making a decent profit.

    Example: Our Bralette Club


    Our Bralette Club integrate customer birthday offers into their loyalty program. This is a great way to surprise and delight your customers—and might even earn them an automatic freebie or discount!

    Using strategies like this one, Our Bralette Club loyalty members have earned 433K points so far, and in 2020, OBC saw an impressive reward redemption rate of 71%.

    Our Bralette Clubs loyalty widget on a light pink banner

    How it works:

    1. On the customer’s birthday, a trigger adds 100 points to their loyalty account.
    2. An email is fired to notify them of their updated points balance. Then customers can use their points to claim rewards.

    For hospitality businesses:


    The economics of birthday offers work out particularly well for hospitality businesses. If you send an automated email with a $25 birthday voucher, your average meal value is $25 and your average drink order is $10, that’s a $10 total sale.

    However, people never dine alone—and if it’s for their birthday, they may even make an event of it. If customers will bring 3 other patrons, say, your total sale jumps to $140.

    Discount = $25

    Average customer order = $35

    Total sale with 4 patrons = $140

    Less discount = $115 (excludes COGS)

     

    How to drive repeat purchases and increase revenue with marketing automation


    Perhaps you’re new to automation, or maybe you’re here looking for inspiration to bolster your automation efforts. Setting up an automation is easy (provided you’re using an integrated tech stack and the right marketing tools), but setting up one that works really well can be a bit more difficult. It requires careful planning, purposeful testing, and result tracking.

    Here are a few tips:

    • Make sure you can segment your audiences so that triggers fire accurately. Personalized communication is really effective, but on the flip side, if it goes to the wrong person, this can create a negative experience for the recipient.
    • If your automations have low engagement and conversion rates, run an audit of the content you’re sending. That includes subject lines, template design, and body copy. If you can, get a second opinion from an expert third party.
    • Don’t get hung up on benchmarks that you find online. Rather than looking for industry averages, measure each campaign against your own average. Test and measure different aspects of your automations in your upcoming campaigns — for example, try a different time delay, try shorter subject lines, etc. All going well, you’ll see improvement month-on-month until you have fully optimized your automation!

    Marsello: Automations made even easier.

     

    With Marsello, you can set up effective automations in no time at all. Get started with our library of proven automations, or get really targeted and set up your won custom triggers and flows. Better still, Marsello integrates seamlessly with your POS and e-commerce tools, so all your customer details, sales data, and marketing sit tidily in one central location.

    Using our tools, you can…

    • Segment audiences using our pre-built groups, or generate lists with custom criteria
    • Easily build attractive and purposeful email templates and campaigns with a simple drag-and-drop builder
    • Choose from a range of proven email and SMS automations in our Automations Library, or build your own custom sequences
    • Report on the success of your automations and see their direct impact on revenue

     

    Start free trial

     


     
     

    Order up! Marsello is now even better at serving hospitality businesses.

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    When converting customers into regulars, hospitality businesses have unique challenges. These 4 features help merchants build valuable customer...

    When it comes to converting customers into regulars, hospitality businesses have their own unique challenges. In Marsello’s latest release, 4 new features make it easier for merchants to build customer relationships.

     

    Do you know who your regulars are? More importantly, can you contact them?

    Sure, you probably have a good idea of who comes through your doors the most. Most businesses have built rapport with locals who come in daily, weekly, or monthly.

    But ideally, you know how to engage with them and when. Rather than having a reactive relationship, you want to keep regulars in your orbit - incentivize them to increase their order size, reward them for referring friends, and more.

    Myth: It’s not worth the effort of getting customers to sign up to your marketing lists.
    Reality: Every customer you add to your database is a customer you can re-engage with through personalized marketing. If you’re not signing up customers, you are missing out on valuable data and insights you could use to inform your marketing activities.


     


    Quick Links:



     

    Here’s why hospitality businesses should collect customer details.

     

    By collecting your customers’ details, you can maximize your marketing efforts. You will be able to gather data on repeat business, the value of each customer, groups of customers who spend the most, and which campaigns are the most profitable. 

     

    Success Story: Pinjarra Bakery

    Increase regulars with rewards. Pinjarra Bakery encourages regulars with a rewards program that has 58% of customers visit at least twice and avg. visits of 5 per month. Their reward program has generated over 5000 redemptions and over 40K in revenue.


    Here are just some of the ways you can use customer data to increase revenue:

    1. Segmentation

    By using Marsello’s default segments, or creating your own custom segments, you can send targeted, personalized marketing messages to the right customers. Reward your top customers with special gifts, or send incentives to those who haven’t been back in a while. Whatever the message, send it to people who are the most likely to engage.

    1. Automation

    When your customers are automatically being segmented into groups, you can start sending timely automated emails or SMS messages. For example, instead of manually sending incentives to your ‘at risk’ customers, have a flow set up that does this in the background, whenever a customer matches certain criteria.

    1. Testing & Measuring

    Test what campaigns work best. Do double points days bring in the most revenue? Which segments respond best to these campaigns? Having access to customer purchase data is invaluable for understanding what marketing actually works, and what doesn’t.

    As you can see, customer data is exceedingly powerful - having these insights could even turn your current marketing strategy on its head.

    However, when you’ve got a queue of hungry customers waiting for their Monday coffee & scone fix, you and your staff want to make point-of-sale as efficient as possible. Asking customers to create an account can feel like the absolute last priority.

    But let’s make one thing clear - collecting details does not have to be a painful experience!

     

    4 new features that make it so much easier for hospitality businesses to build customer relationships.


    Marsello-Email-Newsletter-Template-Merchant (1)

    SMS registration at point-of-sale


    In a nutshell:
    This is very simple. You only need to collect two things at POS: name and mobile number. Once these basic details are collected, a customer profile will be created.

    From this point on, sales made by this customer will all be attributed to a single customer profile in Marsello, provided they reference their mobile number upon their next purchase.

    This allows you to track how much a customer spends each time, what their average purchase is in $, and how regularly they visit (or buy online, if you have an eCommerce store too).

    Complete customer account (via SMS automation)


    In a nutshell:
    Automatically trigger an SMS to send to customers after point-of-sale so they can fill out additional details while they wait for their order.

    Once the POS transaction is complete, your customer will receive an SMS to prompt them to finish creating their account on the new in-store customer portal. 

    This saves you time at POS, and gives customers something to do while they dine-in or wait for their takeaway order. They won’t need to feel like they’re holding up the line, and can relax while they complete their account and explore your loyalty and rewards program.

    Registration QR codes


    In a nutshell:
    Customers can scan a QR code in-store or on print media. This will direct them to take an action (for example, sign-up to marketing, create a loyalty profile, or redeem an offer).

    Since QR code scanning technology was integrated into smartphone cameras in 2017, adoption rates picked up massively. The pandemic has only further solidified their role in our lives - now they are familiar, easy for users, and take seconds to create.

    Now, you can generate QR codes right from within your Marsello account, and add tracking details including site tracking and custom tags.

    Then, download and import your code into Canva (or your preferred design tool) to add your own branding or design. Alternatively, add your codes to your print media - menus, coasters, magazine ads, or window signs.

    By adding site tracking, your customer will be added to that site’s POS straight away. With custom tags, you can get even more granular - for example, you can track where in the venue the QR code was scanned, what event the customer was at, or even which specific poster design people scanned more frequently.

    In-store customer portal


    In a nutshell:
    The customer portal is a central place where customers can view their loyalty profile, points balance, available loyalty rewards & email discounts. It also holds their membership card, which they can use to identify themselves faster on their next order.

    New customers will access this via the SMS registration automation post-POS purchase or when scanning the registration QR code (as above). Initially, it will display a welcome screen where they can sign-up for their account using their Google or Facebook account. This will capture the customer's name and email address, and when they create an account it will opt-in the customer to email & SMS marketing.

    Once they’ve signed up, customers will be able to save the portal to their mobile home screen, so they can easily check their points balance and available rewards or discounts. 

    The portal also contains a membership card with a QR code. If you have a 2D barcode scanner, you’ll be able to scan customer cards at POS to quickly identify them and attribute the sale to their profile.


    Watch the demo video


     

    Want to try these features out?

     

    For now, these features are available to…

    Soon, we’ll be making these more widely available to other merchants as well - so keep an eye out!

     

    How Marsello empowers Lightspeed Restaurant merchants to increase revenue

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    Loyalty and customer marketing now work seamlessly within Lightspeed Restaurant POS, so merchants have all their sales and marketing in one place.

    Loyalty and customer marketing now work seamlessly within Lightspeed Restaurant POS, so merchants have all their sales and marketing in one place.

     

    What does it feel like to be a loyal customer?

    We are business owners, venue managers, marketers - sure. But we’re also consumers ourselves. We know what it feels like to be loyal to a brand. When you boil it down, we like to feel favored. We like to have a buddy who’ll slide us a free beer at the bar, or a friend to keep those shoes on hold for us a liiiitttle bit longer than protocol would usually permit.

    We like to feel like someone has bent the rules, just a little bit, just for us.

    At its essence, this is what a loyalty program delivers. Although rather than being a quick favor under the table, it’s a calculated & measured marketing tactic - implemented to increase ROI, not hinder it.

    Our regular customers are our friends, and the VIP deals we give them incentivize their repeat business - so they come back to us, not to a merchant down the road. The more valuable the customer, the more points they earn, and the better or more frequent the deals.


     


    Quick Links:



     

    Are loyalty programs worth it for hospitality businesses?

     

    Like any industry, the hospitality sector has nuances and unique needs that business owners must consider before committing to a loyalty program service or app.

    Hospitality staff will know the pain of waiting for a customer to sign up to their database while other hungry and un-caffeinated customers are waiting impatiently in line. In many cases, the effort just won’t feel worthwhile.

    Loyalty software built for hospitality will be designed with these pain points in mind - for example, you’ll be able to have a QR code at the counter to allow customers to scan a code and enter their details within seconds. Moreover, your software will let you know the value of each and every person who signs up - making it easy to show staff why it’s important for customers to join your database.

     

    Success Story: Pinjarra Bakery

    Increase regulars with rewards. Pinjarra Bakery encourages regulars with a rewards program that has 58% of customers visit at least twice and avg. visits of 5 per month. Their reward program has generated over 5000 redemptions and over 40K in revenue.

     

    There’s also a suitability test: ‘what kind of loyalty program is best for my business?’

    For a cafe with no online store, a simple coffee card might be more effective and easy to manage than loyalty program software. However, for a multi-site cafe that also sells beans, filter apparatus, and branded coffee mugs from an online store, that loyalty software starts to make much more sense. Taking a step further, a large global chain might even invest in a custom loyalty program app - an expensive option generally not worthwhile for SMEs.

     

    How do I know a loyalty program will work for my hospitality business?

     

    Before you commit to a loyalty program, you probably want to know:

    • Can I be sure it will work?
    • How will I know when it’s working?
    • How do I measure the success of a loyalty program?

    One of the biggest challenges for business owners and marketers is calculating the ROI of marketing efforts. If you’ve ever used Google Analytics or other tools to try to attribute revenue to campaigns, you’ll know how frustrating it can be to pinpoint what’s actually bringing in revenue. While a digital ad might be easy to track, anything more nebulous, like “brand equity” or “customer loyalty”, is much more difficult.

    So, how can you know your loyalty program is delivering a return on your investment? That is, how can you know when your customers are spending more because of your loyalty program?

    For this, you need closed-loop attribution. Closed-loop attribution means that you ‘close the loop’ between marketing and sales - everything is tracked and measured centrally through seamlessly integrated sales and marketing tech.

    In a closed-loop system, your customer takes center stage. Rather than piecemeal data spread across different systems and spreadsheets, every activity is tracked and recorded to a neatly organized customer profile. (For you, that means less clutter, less admin, and no more importing and exporting of customer lists.)

                                                    

    Loyalty is just one part of your broader marketing strategy

     

    When you operate a loyalty program within a closed-loop system, you get total visibility over what specific combinations of loyalty tactics and marketing campaigns work best and who your most valuable customers are. That is, you get a broader understanding of how your loyalty program operates in conjunction with the rest of your marketing efforts.

    If this is sounding a bit technical, here’s the crux of it:

    Every SMS message delivered, email opened, discount code redeemed, purchase made… it’s all there. This is extremely powerful. Using this data, you can segment your customers into groups such as most valuable, most likely to convert from an email, top brand ambassadors… and so much more. 

    Using these segments, you can deliver targeted, personalized and highly effective marketing campaigns that drive repeat sales and increase revenue.

    We don’t want to make false promises but we will say this: customer loyalty is a tried and tested marketing tactic. If your business is the right fit, it will work.


    Close the loop with Lightspeed Marketing & Loyalty, powered by Marsello.


     

    You talked, we listened. We heard that you needed a faster, simpler way to sign customers up at POS. Now, staff members can simply capture the customers’ mobile number, and they'll receive an SMS to complete their account - reducing time at POS and keeping this as quick as possible. Alternatively, you can display a QR code to help customers sign up themselves from the venue or an event. Customers can also save their points card to their phone, making it easier for them to scan upon each visit.

    We also heard that merchants are tired of having so many different platforms to manage - often requiring regular manual imports and exports of customer lists. So in our latest release, Lightspeed Restaurant merchants can now close the loop between sales and marketing. Lightspeed Marketing & Loyalty, powered by Marsello, is designed to help hospitality merchants increase revenue through repeat business and customer loyalty.

    What this means? Lightspeed Restaurant (O-Series) merchants can now use one single platform for all of their POS data, email & SMS campaigns, marketing automations, Facebook ad tracking (using Facebook sync), loyalty program activities, Google Review management and more. 

    In one single place, merchants will have access to customer data from end-to-end. From a customer’s first coffee to their repeat business and ongoing referrals. Merchants can easily see the return on all their marketing efforts, check their average customer lifetime value, and so, so much more. 

    Now that’s closing the loop. 

    Learn More


     
     

    Ways to Incentivize your Customers for Referring Your Brand

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    Learn how to increase revenue and reward your loyalty program customers with referral program designed to encourage engagement and attract new customers.

    Looking for a way to increase revenue and reward your loyalty program customers? Referral program incentives are the answer! 

    A referral program, also known as an affiliate program, encourages existing customers to share your brand with their friends in exchange for loyalty points or rewards. They work because people are as much as 4x more likely to make a purchase when referred by a friend. 

    Keep reading to find out how a referral program works, why they are so effective, and the steps you need to take to successfully run a referral program in your own business.




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    How does a referral program work


    Retail referral programs reward existing loyal customers for bringing new customers to your brand. 

    They work by incentivizing existing customers to tell their friends about your business by offering them points, discounts, or other rewards in return. Referral rewards programs also make the ‘KnowLike Trust’ (KLT) factor easier because loyal customers reduce barriers on your behalf and their positive relationships with your store and subsequent promotion of it help their referred friends to feel confident and inclined to shop.

    If you set it up correctly, it is a win-win-win strategy for growing your business.

    Firstly, your existing loyal customers see instant benefits because when they refer new customers, those referred shoppers use a unique customer code tied to your original customer. In return for each successful referral (tracked by their unique customer code) they receive tangible rewards. 

    Secondly, the new customers reap the rewards. They receive rewards or discounts for their purchase, as well as a good retail recommendation from someone they know and trust. 

    Lastly, your business sees huge growth in revenue and in customer loyalty. Did you know that referred customers are actually much more likely to stick around too? Let’s dive into why referral marketing is an important addition to your marketing strategy.

     

    Why is it important to choose referral incentives


    Customer referral programs are one of the best forms of marketing you can run. The numbers speak for themselves:

        • Customers acquired through referral programs have a 37% higher retention rate.
        • In general, referred customers increase profits by about 16%.
        • Referral programs mean that loyal customers are marketing your brand for you – 83% of customers trust recommendations from people they know. 
        • 65% of a company’s revenue comes from existing customers, so incentivizing loyal customers will always be beneficial to your bottom line. 

    Not only this, but a referral program also encourages new customers to sign up. This means that instead of losing potential sales, you can target your marketing and follow up on abandoned carts to increase conversions. 

    Creating a rewards program is worth the investment!

     

    3 steps to choosing your rewards incentives

     

    No matter what referral incentives you choose, there is one question to keep in mind: “are we giving our customers the best possible experience?”

    Yes, you benefit greatly from referred customers (they have a lifetime value of about 25% more than other customers). However, your referral incentives should always have the customer experience at the center.  

    Whether your incentive structure rewards existing customers, new customers, or both, this step-by-step guide will show you which structure is best for your brand.  

        • Step 1: Choose the right incentive structure 
        • Step 2: Choose the type of reward you want to give 
        • Step 3: Set the terms and conditions of your referral program. 

    Step 1: Choose the right incentive structure

    Your incentive structure will depend on your business and customer experience goals. 

    Integrated loyalty programs are one of the easiest ways to set up referral incentives. This allows for several different referral programs: 

        1. Incentives for your existing customers (one-sided incentive)
        2. Incentives for the new customer when they sign up (one-sided incentive)
        3. Incentives for both existing and new customers (two-sided incentives)

    Let's explore these in a little more detail:

    1. One-sided incentives for existing customers

    The first incentive structure is rewarding the customer that refers people to you. 

    Rewarding your existing loyal customers is always a successful marketing strategy. With a loyalty points program, you can easily award customers points when they refer friends to your brand. 

    For example, Bulo Shoes’ loyalty program lets customers earn points even when they’re not making a purchase. Customers are encouraged to share Bulo’s channels on social media, complete their profile and follow Bulo on social media so they can earn points that they can spend in-store.

    Bulo Shoe's eCommerce loyalty widget earn options

    2. One-sided incentives for the new customer

    You could also set up a one-sided incentive that rewards the new customer. 

    This could look like:

        • A discount for their first purchase
        • Automatically earning points when they sign up to your loyalty club 
        • A free shipping discount for first purchases only 

    As a referral program, this might look like giving loyal customers discount codes to share with their friends. For example, you could let people share a code for free shipping on their first purchase with you.

    One-sided incentives might work for extremely loyal customers, however, it will always work best when you reward existing customers for their efforts. This particular structure works better with influencers who are already receiving incentives in other ways (e.g. Use Code AMANDA10 for 10% off).

    3. Two-sided referral incentives: rewarding both customers


    Rewarding both customers is the best option for optimum referral program results. This is the standard program for Marsello referral programs

    In this setup, you reward your existing customers for bringing in referrals, as well as making a great first impression on your new customers. This strategy is win-win-win.

    Step 2: Choose the type of reward you want to give


    Now that you know who you are rewarding, you need to choose what you are going to offer them. 

    The best referral incentives both encourage existing customers to rave about your brand as well as boost your sales and brand image. 

    1. Discounts

    When an existing customer refers a new person, sweeten the deal by offering a referral discount off their first purchase. This gives them a positive first experience and lets them try out your brand without committing at full price. 

    An example of a referral discount is the successful jewelry and women’s wear brand, Katie Waltman. They have a two-sided incentive structure. 

    The team at Katie Waltman has not only boosted customer retention with their generous loyalty program, but they've also added a referral program for their customers. The referred friend is incentivized with 10% off their first order and the existing customer earns 200 points when their referred friend makes their first purchase. 

    Katie Waltman's eCommerce loyalty widget showing earn options of loyalty members

    As a result of their creative loyalty program marketing, Katie Waltman has seen 100% customer engagement rate with their omnichannel loyalty program, and a 75% reward redemption rate!

    2. Cash / Cash-back

    Another referral award is a cash-back program. This more closely resembles an affiliate or commission program than a loyalty rewards program. 

    In this setup, customers get a cash reward or percentage of the new customer’s purchase. For example, customers could get $5 every time someone uses their unique code for a purchase of $30 or more. 

    For an effective cash-back program, you need to make sure that the minimum purchase amount is more than the cash-back reward. 

    Take another look at Katie Waltman’s loyalty program!

    The KW loyalty offering includes a “5% back on all purchases for creating an account.” With an offer like this, Katie Waltman not only incentivizes customers to join their loyalty program, they really make it worth the customer’s journey from window shopper to a loyal customer. 

    3. Store credit

    Earning store credit or loyalty points is a great way to reward customer referrals. That way loyal customers can enjoy your brand even more, and money keeps coming back into your business. 

    NZ streetwear brand, Federation +, is a great example of using customer referrals to earn store points. 

    With a customer referral program in place, Federation + encourages their current customers to refer friends and earn loyalty points as they do so. This way, the brand grows their customer database, while also improving customer loyalty. 

    Federation's online store loyalty widget pop-up

    4. Gift cards

    Gift card rewards are similar to store credit incentives. 

    A study from First Data shows that on average, U.S. consumers spend around $59 more than the value of a gift card. You could give gift cards to either the new customer,  your existing customer (as a referral reward), or both!  

    Combined with a loyalty program, automatic upselling, and investment in customer experience, gift card rewards can be an effective way to boost your average cart value (as well as rewarding referrals). 

    6. Free subscription period

    Offering a free or reduced subscription lets new customers “try before they buy”. This is most effective for businesses that have a long-lifetime or recurring product. Crealunch is a good example, where customers would be buying meals on an ongoing basis. 

    Once they have crossed the threshold, your automatic email marketing can step in and keep them convinced! 

    Step 3: Set the conditions for your referral program


    The last step for effectively incentivizing referrals is to establish parameters. You don’t want to accidentally encourage referral program abuse or suddenly be out of pocket! 

    Posting referral program terms and conditions clearly will mean you get the sales benefits without the headaches. 

    Here are some questions to ask yourself when setting conditions.

    When will the referral reward be given? 

    Decide on a timeframe for giving out rewards. This might look different depending on what reward type you choose. 

    Here are a few things to consider: 

        • Do new customers automatically get a discount or only after they sign up? 
        • For cashback, do they get it immediately after the purchase has been made or each month? 
        • Do existing customers only get rewards when friends actually make a purchase?
        • Is there a time limit on the discount code once new customers sign up? 

    Thinking about these conditions early on will mean you make money from referrals rather than lose it. 

    Should you use a tiered reward structure? 

    A tiered reward program is a customer incentive strategy that rewards people the more they spend. 

    Consumers who engage with high-performing loyalty programs are 78% more likely to spend a premium. So the more you reward people, the more loyal they will be!

    A referral program rewards your most loyal customers for advocating on your behalf. If you use a tiered reward structure, your referrals could increase as customers move up the levels. A tiered system gives more rewards to people higher up to encourage loyalty and higher spending.

    Let's look again at modern streetwear brand Federation +. Their loyalty program features three loyalty tiers: silver, gold, and platinum. With an 88% reward redemption rate and 20% repeat purchase rate, it’s no wonder that they have seen almost a 10% revenue boost from loyalty marketing alone.

    Marsello-_Federation-Tiers-Widget


    Creating demand for your referral program 


    You don’t need to reinvent the wheel to have a successful reward program. Marsello customers see the best results when they keep it simple! However, there are a few things you can do to make your referral program incentives more desirable or effective.

        • Create scarcity: Add a limited timeframe for coupons. This creates scarcity and encourages people to spend now
        • Reward loyal customers: If you are a new brand you might consider offering a slightly bigger reward for your existing customers to increase loyalty. For example, if sign-ups receive 20 points, you could make referrals 25 points
        • Run a seasonal campaign: To give your referral program a boost you could give double points for a limited time 
        • Create multiple referrals: instead of giving out store points, you could give people free gifts after a certain number of referrals
        • Make an ambassador program: This is like a loyalty program except exclusively for referrals. This lets your most loyal customers feel like they are “in the club” and are rewarded with raving about you 

     

    Examples of successful referral programs from existing brands


    Still not convinced that a referral rewards program is the way to boost sales and build customer loyalty on autopilot? Take a look at these examples of successful referral programs and how simple they can be! 

    Merrell NZs online stores loyalty widget pop-up showing how customers earn points

    Merrell NZ

    Merrell NZ is a footwear brand that helps people get into the great outdoors. Their loyalty program has a 15% repeat purchase rate and an average purchase frequency of 3.5x, showing that Merrell NZ’s customers are already proven loyal regulars. Customers can earn 100 points to spend in-store when they refer a friend.

    Smack bang's earn and rewards options from their eCommerce store's loyalty widget

    Smack Bang 

    Smack Bang is a New Zealand-based merchant that specializes in locally-made pet accessories, gifts, and treats. The gorgeous pet boutique also has a lovely loyalty program that’s paying dividends; these loyalty initiatives have generated a 100% loyalty engagement rate, and a reward redemption rate of 38%. Using their adorable, branded widget, customers can earn 10 points when they refer a friend which they can see immediately on their dashboard. 

    Carolina Liyestyle's eCommerce loyalty widget showcasing loyalty member earn options

    Carolina Lifestyle 

    Carolina Lifestyle also rewards customers who successfully refer their friends. Members get 100 points (equivalent to $10) for every successful referral – and those customers immediately get $20 simply by joining!

    All these initiatives, combined with Carolina Lifestyle’s exquisite and unique products, help to ensure that shoppers keep coming back. And it works – the company’s average customer lifetime value (CLV) is $716.94, and about a third of Carolina Lifestyle's customers return to shop again within two months.

    The eCommerce loyalty widget on Crosby by Mollie Birch's ecommerce site.

    CROSBY by Mollie Burch 

    CROSBY by Mollie Burch is an eclectic, modern fashion brand. Their loyalty program, The Crosby Collectors, lets customers earn Pink Points. Their referral program is a good example of setting conditions for rewards. For example, customers receive points for referring a friend which can then be spent in store on orders over a certain amount.

     

    Final words

    Offering your new and loyal customers referral program incentives is a win-win-win sales strategy. Whether you are offering limited-time discounts, points to spend in-store, or other fun freebies, a referral program is sure to keep your customers (and bank accounts) happy.

    Customer advocacy starts by creating a rewarding and engaging experience no matter how your customers choose to shop. Marsello makes it easy to launch a bespoke loyalty and referral program that is proven to increase customer lifetime value and maximize ROI.


     

    How to Request and Manage Google Reviews From Customers In-store and Online

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    Requesting and responding to Google Business Reviews can feel like a big task. Learn how to manage reviews and target the right customers for valuable...

    There’s a popular saying that you’re only as good as your last performance, and this is certainly true for retail establishments.

    Because of the COVID-19 pandemic, consumers have become more discerning about what businesses they support. With more information at their fingertips than ever before, shoppers spend more time researching different options.

    Google Reviews have become a crucial tool for businesses to manage their reputations online. This blog will explore how businesses can manage Google Reviews and increase discovery opportunities in the search results – and how Marsello can help!


     

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    What are Google Reviews?

     

    Google Reviews is a functionality embedded within Google Maps and Google My Business where consumers can publicly post reviews for establishments they’ve visited.

    The purpose of Google Reviews is two-fold. They assist businesses with building a positive reputation amongst consumers while also helping individuals find suitable establishments in their local area. More than half of shoppers say they’ve used Google to discover new businesses.

     

    Why do Google Reviews matter?

    Infographic showing that 84% of customers put as much trust in reviews as they do recommendations from close contacts
    Here are some reasons you should consider leveling up your Google Reviews initiatives.

    Improving your local search ranking

    Google Reviews play a critical role in determining your business’s local search ranking. Local SEO helps Google match a person’s search with relevant nearby businesses (e.g., “Italian restaurants in New York City”). Ensuring a healthy supply of positive reviews increases the odds of your business coming up high in the search results.


    Consumers trust online reviews as much as personal recommendations

    Research shows that 84% of consumers trust reviews as much as recommendations from family or friends – this tells us that customers really do consider social proof in their purchasing decisions.


    Giving customers the opportunity to provide feedback

    Customers want to feel that their experiences matter. Giving them the opportunity to share what they love about your business on a public forum shows that you genuinely care and want to receive feedback – even if it isn’t always positive.

     

    How can retailers collect Google reviews?


    Are businesses allowed to ask customers for Google Reviews?

    Yes, though there are some ground rules.

    Google doesn’t allow businesses to pay customers for leaving reviews or “review gate” by discouraging customers from leaving negative reviews. Furthermore, you cannot use reviews left on Google for marketing purposes on other platforms, such as social media or your website.

    Here are some actionable ways that your business can collect Google Reviews:

    Email and SMS automated flows

    It isn’t practical for your business to manually send out review requests to individual customers. Instead, you need a tool that allows you to contact customers in bulk at a time of your choosing. 

    Marsello’s email and SMS automation tool enables brands to build custom email and message flows to request reviews. Marsello customer Harry & Her send automatically triggered email campaigns coupled with the Google Reviews Manager tool to build a solid review base and, in turn, boost their credibility as a retailer. Here's what they had to say about the tool:

    A quote from Harry and Her about how they've automated the Google Reviews collection and promotion process.


    At the POS/checkout directly after a sale

    While the “right” time to ask for a review will depend on your business, products, and customers (more on this below), striking while the iron is hot is usually the best way to get customers to leave reviews. In-store visitors have the chance to form a relationship with sales associates during the shopping experience, which can make customers more responsive to review requests. Consider speeding up the process by having a QR code at the checkout that directs customers straight to your review page.

    When a sale is completed during a promotion

    It’s always a good idea to ask for reviews while your brand is hosting a sales promotion. When customers have gotten a great deal from your business, they’re more likely to have a favorable impression and leave a positive Google review.

    For example, if your brand runs a flash sale for 24 - 48 hours, you can set up an automation flow that sends a review request to a specific segment of customers (i.e., those who placed an order during your flash sale). By using Marsello’s customer segmentation, your business can solicit reviews from customers who are most likely to engage and give glowing feedback.

    When customers join the loyalty program or progress tiers

    Loyalty reward programs can act as their own form of customer segmentation. The shoppers who join your program are usually those already loyal to your brand, meaning they’re also more likely to leave reviews.

    Brands have multiple opportunities to target loyalty program customers, such as when they sign up, redeem a loyalty reward, or progress to a new loyalty tier. These touchpoints are a great time to ask for a Google Review and show members that you care about their experience.

    Smack bang's earn and rewards options from their eCommerce store's loyalty widget displayed on a light pink banner

    You can also take this a step further like Marsello-powered pet boutique Smack Bang by offering loyalty points in exchange for leaving a product review on the product listing itself. With custom automations, it’s easy to create an automated campaign that is triggered when customers leave a positive product review. Product reviews provide a great opportunity to encourage your customers to leave a Google Review about your business.

    Promote/encourage reviews on social media

    Cross-channel promotion is a critical part of collecting Google Reviews. In addition to asking customers for reviews in-person or via email and SMS, you should put out a call on your social channels asking customers to share their experiences.

    It’s important to note that Google does not allow you to use reviews as advertising collateral on other platforms. But there are some less direct ways to achieve this.


    3 social media reviews from Instagram for Chat Thai's restaurants.

    Thai restaurant Chat Thai has a collection of reviews on their Instagram account created from photos and videos they have been tagged in. Consider resharing user-generated review content to steer customers towards leaving Google Reviews.

    Make your Google My Business page easy to find and direct customers there

    Customers won’t leave Google Reviews if your Google My Business page is difficult to find. Some of your customers may never have left a Google Review before. When making review requests via email and SMS, ensure you provide a link to your Google My Business page. Also, consider adding a review page to your website so that you can direct customers to your Google listing.

     

    The right way to request a Google Review

    We’ve gone over some of the best ways to collect Google Reviews. But when is the best time to request a review?

    It can be a tricky balance to get the timing of requesting reviews right. If you leave it too long, your customer’s experience will be less fresh, which could affect the quality of their review. But asking too soon risks annoying your customer, especially if their order hasn’t arrived yet.

    You should also factor in different customer segments. Some of your loyal customers may be more eager to submit reviews straightaway, while those who are new to your business may need some time before they’re ready to leave feedback.

    Marsello’s SMS and email automations allow businesses to automate the process, segment customers, and ensure communications are sent at the optimum time to encourage positive reviews.

    It’s also easy to combine automated campaigns with other review collection methods. For example, a restaurant can prime diners by asking them in person to leave a review and following up by sending an automated email reminder the following day.

     

    How should retailers respond to positive and negative reviews?

     

    Managing positive reviews is simple enough – simply thank your customer for their feedback and say you hope you’ll see them again soon. But what if their experience was less than positive?

    No business wants to receive a bad review. But the most important thing to remember about Google Reviews is whatever you say (or don’t say) is there for potential customers to see. How you respond affects the customer who left the review and onlookers who make decisions based on the reviews left about your business and how you choose to respond. 

    If you receive a negative review, always thank the person for their review. Take the time to investigate the issue to find out what went wrong so you can explain in your response. Most importantly, tell your customer the steps you will take to ensure this doesn’t happen again. Consider offering them a discount for their next visit to encourage them to return and see the changes you’ve made; this puts the ball back in their court and shows onlookers that you have made a serious effort to resolve the issue.

    In some cases, it may help get more information from the customer. In this case, you can respond by encouraging them to tell you more about their experience. As always, it’s best to stay courteous by thanking the customer for their feedback and empathizing with them. 

    Check out this example from Romano's Macaroni Grill.

    A 1-star Google Business Review for a hospitality business with a well-delivered, positive reply from the business owners

     

    Final words


    Google Reviews can feel like a business’s best friend or worst enemy. Using a tool like Marsello to support your Google Review strategy enables you to streamline Review management and ensure that you’re sending the right response at the right time to foster customer loyalty.

    By taking a responsive and automated approach to Google Reviews, your business can proactively enhance its reputation and build stronger relationships with customers – one review at a time.

     

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