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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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    Top Trends For Hospitality & Retail Businesses in 2023

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    Marketing to your most loyal customers, innovating with your products, and building your brand could be your most important investments in 2023.

    It’s no secret that the retail and hospitality sectors are in for a challenging year. The EY Future Consumer Index (November 2022) found that:

    • 62% of consumers don’t expect the economy to recover within the next 12 months
    • 58% expect their living costs to increase over the next six months

    So let’s tackle this head-on, rather than letting it become the elephant in the room. We talked to Victoria University Economics Lecturer Nathaniel Robson about economic trends, and where retail and hospitality merchants can focus their energy in order to keep business pumping. 

    We also want to take a look at how this might affect your marketing plan, and give you tips and resources you can use to inform your campaigns in coming months.

    💡 Marketing to your most loyal customers, innovating with your products, and building your brand could be your most important investments in 2023.


    What's Happening For Hospitality & Retail Businesses in 2023:


     

    1. Pressure to offer more competitive wages will continue


    Pressure on wages is driven by two main factors: a tight labor market and higher inflation expectations.

    “Because the skills of the primary workforce in hospitality and retail are highly transferable, businesses in those sectors will be competing with a range of alternative potential employers,” says Robson.

    “​​At the same time, higher costs of the materials used in hospitality and retail service provision will squeeze profit margins.”

    Both of these factors will make it harder for hospitality and retail businesses to find and retain staff.

    2. Demand from lower-income consumers will drop


    Consumers are seeing cost-of-living going up. But this doesn’t affect everyone in the same way.

    Robson explains that lower-income households will be hit the worst by inflation. Basic costs of living (rent, groceries, power, internet, etc) will use up an increasing portion of their weekly income unless minimum wages and benefits increase proportionately.

    Brands that serve higher-income households (boutique hotels, for example) might not see a significant decline in business. However, many retail and hospitality businesses serve customers in a younger, lower-income market. These customers will start looking for cheaper alternatives (looking to retail giants for cost-effective, mass-produced products).

    3. Prices will increase to pass on some costs to consumers


    Inflation expectations are also driving up costs of ingredients and materials, meaning tighter profit margins and pressure to pass on extra costs to consumers (i.e. to increase prices).

    Robson notes that this also presents an opportunity to innovate with your product line and attract higher-income, generally older, consumers.

    “New products may attract a new market of early-30s customers as the early 20s market has drifted away due to living cost rises pushing them towards more mass-produced and cheaper alternatives.”

    4. Customer loyalty and a strong brand will pay off


    Businesses that have invested in customer loyalty initiatives and brand experiences over the pandemic may be rewarded. Through the pandemic, consumers’ purchasing habits changed, with loyalty decreasing as people worked and shopped from home.

    Browsing stores and shopping on a lunch break in town was no longer a convenient option, and consumers opted to compare prices online and have goods delivered to their front door. 

    Brands that focused on customer loyalty and established a unique market position over this time will see these efforts pay off as consumer wallets tighten.

    "The opportunity ... can be met by striving for a unique market position – having a strong brand and established customer loyalty."

    Nathaniel Robson, Economics Lecturer

     

    How a make-up retailer grew a loyal database & doubled sales with Marsello


    scottys store image
    For years, Scotty’s Makeup & Beauty customers had been asking about discounts for students or industry professionals. “With the Scotty’s Rewards Program, we now have a solution that suits a lot of our customers,” says Hollie, Sales Manager. “The fact that we can run the program both online and in-store is great for building our customer database and turning one-time customers into repeat customers.”

    With the loyalty program, Scotty’s Makeup & Beauty has seen expansion beyond the industry it initially sought to serve. Now, they’re building a whole new audience of customers who come to them with all their dress-up and costume needs. Since unlocking these audiences with Marsello, they've seen EOFY sales double.

    Turn first-time shoppers into repeat customers.
    Create rewards that are designed to motivate your customers to shop, strengthen customer relationships and grow your business.

    Learn more



    5. Innovative, flexible brands may see the most success

    “Trying to hibernate until the crisis is over is not a safe strategy; it may actually involve less risk to try something bold.”

    — Nathaniel Robson, Economics Lecturer

    Learning from past recessions and economic downturns, a pattern emerges. Those brands and businesses that take a proactive approach to innovation can emerge stronger and more successful than before. We see this across every sector—just look at brands like Lego, Netflix, and Walmart, which all grew during the 2008 recession because of new products and investments.

    Yes, there may be upfront costs, Robson says, but “there is some potential long-term benefit to come from the associated innovation.”

    What does all this mean for your 2023 marketing plan?

    When budgets are tight, it’s more important than ever to stick close to your strategy. That doesn’t mean stop innovating and go back to 1950s marketing tactics — quite the opposite.

    What it does mean is being focused, considered, and clever about the way you reach your target audience, the key message, and the call to action. Planning your marketing campaigns shouldn’t be rocket science. If you stick to what’s important, it can be both simple and effective.

    To keep your campaigns focused, try our 5-Minute Campaign Plan activity. In this template, you’ll strip everything down to the strategic essentials, and you can flesh out the details later.

    Let’s run through an example, with all of the above in mind.

    Free Download: The 5-Minute Campaign Plan
    Strategy can be daunting, but it does not need to be rocket science! If you stick to what’s important, your campaign can be both simple and effective.

    Download now

     

    Question 1. What is the key insight?

    Any good campaign strategy starts with the “why”. We find that business owners have marketing ideas in spades (which is great!), but this is the time to turn on the filter. Which ideas have a sound reason for action? What is the driving insight that makes this specific idea a good one? 

    Example: Consumers are tightening their budgets as inflationary pressures hit. 

    Question 2. What campaign idea works best with your insight?

    Test your idea(s) against your “why”. Be ruthless. You might have an idea to design and launch a new luxury product, but realize that if you’re being honest with yourself, it doesn’t align with the insight at all.

    Example: A loyalty campaign, like a double points week, that drives repeat orders.

    Question 3. Who will be your campaign audience?

    Now you have your “why” and “what”, it’s time to figure out the “who”. Think about who the insight impacts, and what they have in common.

    Example: For your double points campaign, you might have a couple of audiences. First, you’ve got customers who are already in your loyalty program. They are aware of your brand, and actively engage with you. Second, you’ve got customers in your who aren’t in your loyalty program (and who may or may not be in your database).

    Question 4: How will you reach your audience with your campaign?

    Sketch out a rough plan of channels and activities. Think about where your campaign audiences are, and how you can engage with them.

    Example:

    • Loyalty members – SMS, email
    • Non-members in database – SMS, email (use double points as an incentive to purchase & join the program)
    • Other shoppers – Ask to join in-store and include in welcome pop-up online (use double points as an incentive to join the program)
    • Social followers – Instagram, TikTok ads & posts


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

    Free Download: The 5-Minute Campaign Plan
    Strategy can be daunting, but it does not need to be rocket science! If you stick to what’s important, your campaign can be both simple and effective.

    Download now

     

    Manage your 2023 marketing campaigns with Marsello



    All your marketing, in one place.

    • Turn one-time shoppers into loyal customers with loyalty and rewards
    • Send email and SMS campaigns to your customer database
    • Create, schedule and publish social posts across Instagram, TikTok and Facebook
    • Create set-and-forget marketing automations
    • Plan all your campaigns in one simple marketing calendar
    • Track the direct impact of all your marketing 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!

     

    Boost loyalty for hospitality with Marsello, Lightspeed Ordering & Bopple

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    Integrated omnichannel loyalty for hospitality has never been so easy! Read how Marsello, Bopple, & Lightspeed Ordering bring seamless hospitality loyalty...

     

    From the humble coffee card to 2-for-1 deals, the hospitality industry is no stranger to a loyalty-focused marketing strategy. But things have progressed rapidly from physical loyalty cards – the future of hospitality is digital, even when it’s brick-and-mortar.

    The possibilities for digital hospitality don’t just stop at loyalty programs either! From adaptable real-time menus and online QR table-ordering to increased upselling with less work from staff, the digitalized hospitality experience is paving the way for personalized, data-driven dining experiences that automatically drive customer loyalty and retention.

    And Bopple is here to bring that to you by integrating with Lightspeed POS for restaurants and Marsello – the perfect omnichannel partnership!

     

    What is Omnichannel Hospitality

    The gap between physical stores and online channels is lessening – in fact, they’re becoming one and the same experience. And the hospitality sector is no different! From online wine tastings to contactless ordering with QR codes, the way we indulge in dining is tightly integrated with the way digest digitally. 

    Creating a seamless experience that enhances each and every customer touchpoint is at the heart of an omnichannel strategy, but it’s so much more than that! With a multi-channel approach, you’re able to capture valuable customer information that empowers smart, data-driven, customer-centric business decisions, ensuring you get results from your investments and see a trackable return on investment.

    A light-blue banner with the Marsello, Bopple and Lightspeed logos lined up side-by-side


    With, Lightspeed Ordering powered by Bopple and Marsello, you have a powerful, tightly integrated tech stack that works together to drive undeniable results and increase customer relationships, engagement, and returns. Let’s dig a little deeper into each app: 

    Bopple: Whether you’re running a one-off physical pop-up, or you’re an established restaurant, Bopple has what you need to succeed online. With COVID-specific features like QR check-ins and ordering and essential tools like customer database tracking and frictionless checkout, Bopple was developed with the digital hospitality owner in mind!

    Lightspeed POS for Hospitality: Digital POS has cemented itself as the new normal and Lightspeed Kounta POS is fast becoming the go-to tool for savvy hospitality business owners. So you’ve sold out of a dish? Update your digital menu on the fly! Running a special or a deal? Promote it directly to your social media channels and flow that campaign into your Marsello-powered marketing! With everything online, you’re able to edit and adjust all important areas of your business in real-time, without time-consuming admin.

    Pair your Bopple and Lightspeed Kounta POS apps with Marsello for a tightly integrated, one-stop tech stack and answers all your omnichannel hospitality needs.

    Marsello not only offers personalized loyalty programs that are integrated in-house and online, but the options are endless! Encourage friend referrals from customers, nurture customer loyalty, reward purchase behaviour, and turn insights into opportunities with detailed reporting and automated customer segmentation.

    Tied together, it’s easy to see how Lightspeed Ordering powered by Bopple and paired with Marsello Loyalty is a recipe for success and an unrivalled omnichannel solution. 

     

    Learn More about Boople Marketing Automation

     

    What does an omnichannel approach mean for hospitality customers?

    Customer experience! The long and the short of it is that your customers’ experience of your business is streamlined and interactive. Just look at how Chat Thai uses their omnichannel tech stack to maximize customer experience and drive loyalty!

    A banner with Chat Thai's online ordering menu and online rewards window overlapping eachother

    Chat Thai’s modern branding and crisp aesthetic lead customers to expect a modern dining experience and that’s exactly what their customers receive!

    From digital ordering to customer loyalty, all Chat Thai’s customer data is captured with the help of Bopple’s digital tools like QR-code sign-ins and contactless payments. Orders are processed through a Lightspeed Kounta POS, and, combined with Marsello, Chat Thai can easily manage their customer information and create a seamless marketing strategy that re-engages their customers at every touchpoint thanks to an omnichannel loyalty program.

    And their customers love it too! In fact, in the first 2 months of using Marsello loyalty with their Lightspeed Ordering powered by Bopple, Chat Thai has seen a 375% increase in reward redemptions!

     

    Did you know, customers who order digitally spend more?


    From ordering in person, to simply ‘ordering in’, it’s apparent that customers who order digitally are more likely to spend more. In fact, one study suggests that customers who order digitally will spend as much as 25% more on average. The team at Lightspeed put this down to a few potential factors. Digital menus:

        • Give the customer a primarily visual experience. Perfected product photography goes a long way in encouraging diners to order more by encouraging an increased hunger response. Consider this your customers’ first impression of what to expect from their order – remember, enticing realism will go a long way! Just look at how Chat Thai presents their menu. It’s enough to get your stomach rumbling and taste
        • Increase the opportunity to upsell. Essentially, a digitized menu and ordering experience automates the upselling process. With beautiful images and an enjoyable, easily navigable online experience, customers are much more likely to explore the entire menu and maybe order an extra side dish or replenish their drinks throughout the meal.
        • Allow for increased flexibility. Think about it like improving customer experience. For example, when it comes to busy businesses and the re-ordering process, digital ordering gives the customer the ability to adjust their order easily and in real-time. No catching the eye of waitstaff, no miscommunications or worries about dietary requirements. And this in turn equates to increased average order values and improved long-term customer loyalty.

    The benefits of moving towards digital hospitality for retailers are limitless. With tools like data-driven channel management, customer-driven loyalty engagement, and automation across all touchpoints, omnichannel hospitality is the answer to smart, customer-centric business growth.

     

    Get the omnichannel experience for your customers

    So you’re ready to make the move to an optimized omnichannel tech stack designed specifically for hospitality business owners – that’s what we like to hear!

     

    Book a demo to get started today

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