News

How to keep 'em coming back for more

April 24, 2005

Kiosk-based programs can play a big part in the battle for customer loyalty. And c-stores can benefit from those programs — if they are properly planned and implemented.

A special offer, just for you!

In a loyalty program, customers give you their names, addresses, a few other details and the privilege of tracing their purchases in exchange for a card that gives them "exclusive" discounts. But if your loyalty program is just like your competitors, why would customers want to join?

"If all stores have the same types of loyalty plans, and most do, then there is nothing special going on," said Mitch Krayton, president of 1st Kiosk, a California-based touchscreen and signage developer. "It is evident from my experience that they don't try very hard to make the programs more compelling and social."

Personalizing the experience is an ongoing challenge. One firm with success implementing loyalty programs isApunix, which has developed such programs for truck stops, grocery stores and casinos. According to vice president Sylvia Berens, personalized systems quickly become tightly identified with the shopping experience.

"I believe that as corporations understand the power of knowing more about their customer, and targeting offers to them, the kiosk will become even more important and central to their marketing campaigns," she said.

Too much of a good thing?

The loyalty card has seen such widespread success that some stores advertise "no card needed" as a bragging point.

But according to the experts, if the reward offered is great enough, customers don't perceive the program negatively and get excited about being involved.

"The key is, how attractive is the program to the customer?" Berens said. "The value of the items isn't necessarily always high, but it may be about the convenience of redeeming the points and using them at the location."

Krayton said that retailers need to focus on making their program truly special so that the consumer will want to carry the card and be sure to use it. "A loyalty program has to make the customer feel unique," he added.

Making loyalty programs worth it

According to Chuck Mallory, a senior manager for hardware and software provider Radiant Systems Inc., multitasking enhances loyalty programs.

With software that manages multiple loyalty programs at once, "members can participate in Buy 10 Get 1 Free programs at the same time they're earning points for all purchases, at the same time they're participating in a beer tour," Mallory said.

This multipurpose approach is attractive because of the enhanced customer experience and because of the resulting decreased cost of ownership.

Whatever path a retailer chooses to take, the consensus seems to be that a loyalty program of some sort is usually worthwhile, if you have enough traffic to benefit from it and stay on top of the details.

"Good loyalty kiosks with effective customer recognition are very effective," said Doug Peter, chief executive officer of software and service provider St. Clair Interactive Communications. "Sales uplifts of 7 to 13 percent are not uncommon."

An extended version of this article was first published inKioskmagazine.