“A Case Study - Drive More Traffic Into Your Store with Rewards and

Communications”

Brent Harms – Founder & CEO

Why are you Here?

• Thinking about a rewards program and want to see potential results?

• Have a rewards program and want to see how it compares?

• Want to learn what options are available?• Looking for new ideas to drive more revenue?

Perfect – you are at the right session!

Plan for this Session

• Brief overview• Reward Programs – Trends and Results• Case Studies• Promotions and Communications– Identify your Customers– Promote to your Customers – email and text

• How to Start a Program and Keys to success• Time for Comments and Questions

Tecmark Overview

• Over 10 years supporting loyalty programs• Focus on retail, restaurant, and hospitality• Loyalty platform, web tools, and POS tracking• Complete email and text support (SIMPLI®)• Clients range from 1-over 2,000 locations• Recently entered C-store space• Integrated with Gilbarco, adding others

Programs Come in Many Flavors

Common C-Store Programs

Grocery Pump

Discount

In-store Pump

Discount

Pump Discount

Clubs– buy 10 get one

free

Points based on purchase

C-Store Industry Reports

• Economics of Loyalty (NACS report 2010)– 5%↓ defection, 3%↑ ticket, 5%↑ frequency, and

0.5%↑margin (after program costs)• Case Studies from NACS Show Presentations:– FAS Mart (200 locations) – Average member spend

up $1.30 in store and 2 more gallons per month – Express Convenience Centers (28 locations) –

loyalty customers increased spending by 9%

• C-Store loyalty results lower but consistent with other industries (including programs we manage in retail and restaurant)

• Will improve with better programs/delivery• Key results from other industries:– Increase in visits 10 – 22%– Increase in amount spent 15 – 25%– Decrease in attrition 10 – 15%– ROI Over 500%

Loyalty Program Results

Increase in fuel purchases 10%Decrease in drive-offs 80%+Increase in in-store purchases 15%+

Specific C-Store Targets

• Point program where members receive 20 points per dollar in-store and 10 points per gallon purchased

• Base award of $5 for every 5,000 points (tiered up)• Implemented a merchandise discount program for

members providing specific discounts on specific days just for members (may get partners to pay)

• Used driver’s license to enroll new members • Could not capture email at POS, so provided bonus

points for members to go online to provide email

C-Store Case #1 – 34 Locations

• Over 30,000 members• Number of gallons purchased went up 10%• 98% of new members used the driver’s license to

enroll improving the accuracy of the data and the speed of enrollment

• In-store merchandise purchases increased by 16%• Only 11% of members went online to give the email

address so additional promotional activities were implemented to increase email database

Results after 6 months

• Members receive $0.03 off per gallon of gas• 2 additional benefits for members who provide an

email or text number:– Coffee club – buy 10 and get one free– Merchandise specials just for “registered” members

which are discounted or free items that change from week to week

• Use driver’s license to enroll new members• Loyalty members do not have to pre-pay if paying

cash for fuel

C-Store Case #2 – 18 Locations

• 15,000 members• 100% of new members used the driver’s license

to enroll improving the accuracy of the data and the speed of enrollment

• Drive-offs decreased by over 80%• Over 33% of members went online to provide

email address or mobile number• Customers coming into the store increased from

70% to 75%

Results after 7 months

Other Program Examples• C-Store/Grocery partners like Holiday and Cub with

card for discounts at pump based on grocery spend• Super America, point program for gas and in-store

purchases, many redemption options, plus clubs• Paper coupons for discounts on gas paid in store like

Kwik Trip/Holiday (other coupon offers as well)• POS systems have modules to automate discount and

club programs using integrated partners for delivery of programs (including Tecmark)

Enrollment Made EasyUse a terminal to swipe or scan driver’s license to capture accurate data, then add email/mobile number online

Encourage and incent members to join through your website

Have paper applications that you can enter online when business is slow

You have members……now what?

Get them in the door!!!

Create Promotions!

Offer merchandise discounts for members - $1 off your favorite Pepsi product!

Birthday specials – free coffee on your big day!

Double points for grand openings, or just on slow days

Promotions are set – How do Members know?

• Time for EMAIL and TEXT Marketing – Communicate to your members the way they want

either email or text– Using a web-based solution gives you the tools

and flexibility to design your email and your text message

– Track how many members open your emails and watch them come in for the offers

– Get reporting about number of redeemed offers

Results that Drive Traffic• So you send out a bunch of

emails – who really opens them?– Industry average – 25 – 30%

opened– Promotion redemption rates

vary wildly based on offer – usually between 20 – 40%

– You send 1,000 emails – 300 will be opened and you now have 60 – 120 customers coming in the door the day of your promotion!

Text Results

• Text marketing is extremely effective in the C-Store Market, especially with 18 – 30 year olds– 95% have phones that receive texts– 98% read every text they receive and usually

within 15 minutes of receiving them– Redemption rates range from 20% - 70% -

compare that to print or direct mail advertising with a 1.5% redemption rate

Next Steps

• Identify your goals and objectives• Determine customer needs• Understand your competition• Define your program • Use experts • Find the right partners• Execute, execute, execute!!!

Keys to Success

• Give your customers what they want• ROI, your investment should deliver results• Make it fun and easy for your customers• Keep it simple for staff• Training is critical• Keep the program “fresh”• Connect with your customers

Time for Comments and Questions

Brent Harms, Founder & CEOErika Stevens, Interactive Marketing Manager

651-452-9551www.loyaltymarketing.com