How Brick and Mortar Stores Are Using Loyalty Programs (And Why You Need One Too!)

A lot of brick and mortar stores have launched their own loyalty programs and for good reason.

A study by the Harvard Business Review found that acquiring a new customer is 5 to 25 times more expensive, than retaining the ones you already have. In addition, Marketing Metrics found that new customers are only 5 to 20 percent more likely to purchase from your store, as compared to previous customers who are 60 to 70 percent more likely to purchase.

This makes a lot of sense.

We are likely to stick to tried-and-tested brands, than buy from those we have no prior experience with. This is why guiding new customers along the sales funnel is a long and complicated process.

That said—how can brick and mortar stores launch their own loyalty programs? Let’s look at some examples from top brands:

1. Domino’s Pizza—Piece of the Pie Rewards

Domino’s multi-channel sales program enables loyalty members to earn points and receive exclusive bonus offers and discounts no matter how they order—online, in-store or via the mobile app.

An order worth $10 or more is equal to about 10 points. When members reach the 60 points, they can receive a free medium two-topping pizza.

They also host contests and giveaways that are exclusive to loyalty members. Last 2017, the company gave 10 shares of company stock to lucky winners, and in July 2018, it rewarded winners with round-trip tickets to anywhere in the US.

The results?

The Piece of the Pie Rewards has amassed millions of members.

2. Dunkin Donuts—DD Perks Rewards

Dunkin Donuts loyalty program has signed up a whopping 7.5 million members.

How? The company offers generous perk rewards to new and current members. Just by signing up for the program, you can get one free coffee in exchange for a free download, and a free beverage every year on your birthday.

You also get 5 points per dollar spent, and a free medium drink every 200 points.

The brand also rewards their customers for milestones they’ve achieved, special occasions and marketing activations:

• When their loyalty program reached the one million milestone in 2014, loyalty members received 100 points.
• In 2016, it gave members a special code that could let them earn 375 DD Perks points.
• During ‘Perks Week’ it gave loyalty members the opportunity to win $5000 dollars and 600 points—worth about 2,000 cups of coffee.

Worried that your points would go to waste? The company’s mobile app lets members share their loyalty rewards with family and friends and buy Dunkin’ Donuts gift cards.

3. Starbucks Rewards

Starbucks Rewards gives customers 2 stars for every $1 spent. They can then get to choose from a variety of offers:

They also added tiered levels to their loyalty program to give customers a goal to work towards. Those who earned more than 300 points were “Gold Members” who received a special gold card with significantly better rewards and offers.

The results?

After implementing their loyalty program, Starbucks achieved a record setting quarter. Their revenue was a whopping $2.65 billion, in part through the increased participation of its loyalty members.

What Can We Learn From These Successes?

Customer loyalty is important for brick and mortar stores.

You can drive sales and attract new customers through creative marketing campaigns, but a loyalty program seals the deal and gives customers a goal to work towards. As a result, you get more repeat purchases and increased customer engagement.

The good news is you don’t need to do a lot to start your own loyalty program. You can explore loyalty card solutions to incentivize customers to come back more often.

One of them is CandyBar, a customer loyalty software that allows you to run your loyalty programs in-house. You don’t need to download or install any apps, as it works from your browser on any device.

Plus, as a Gravity Payments customer, you can save $20/mo off CandyBar. Learn more about how Gravity Payments and CandyBar work together or ask us about it.