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In many cases, the end of the year gives you time to step back and take stock of the last 12 months. This is when many of us take a hard look at what worked and what did not, complete performance reviews, and formulate plans for the coming year. For me, it is all of those things plus a time when I u...
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Godiva Sweetens the Deal with Loyalty
Godiva shares the secret recipe to a successful customer loyalty program

CLIFTON HEIGHTS, Pa., Dec. 17, 2012 /PRNewswire-iReach/ -- Strengthening ties with a retailer's best customers continues to be a priority as we enter 2013. Loyalty programs have proven to be one of the most cost effective and successful ways to acquire, retain, and convert good customers into best customers. Retaining 5% of your customer base can increase revenues by 50%. Godiva is maximizing their customer potential by taking advantage of creative loyalty strategies.

During a recent webinar with Godiva and Demandware, Jordan Majkszak, Director of Marketing at ProfitPoint, a leading provider of loyalty programs, states that, "Consumer spending is 46% higher with companies that offer loyalty programs". Majkszak states, "The key to a successful loyalty program is to move beyond simple transactional data and increase the revenue potential by building customer relationships through targeted and relevant promotions and rewards." Majkszak went on to say that, "Programs must resonate with each customer, build visibility and advocacy, and differentiate you from the competition. Otherwise your loyalty program will go stale and become just another tag on a key ring."

Godiva Chocolatier has found success in creative customer loyalty strategies by combining social media, sweepstakes, and loyalty with their recent "Cake Bash Sweepstakes". Barbara Eskin, Director-Development, Loyalty & Acquisition, said their objective was to "drive fan growth and acquisition". Eskin said, "Visits exceeded expectations by over 30%, unique entrants exceeded expectations by 11% and nearly 3 times the amount of fans 'talked about us' than was forecasted." An aggressive set of communication levers were put in place to support their predetermined success indicators that included email, social media, boutique collateral, catalog advertisements and website announcements. The sweepstakes itself was hosted on Facebook.

Godiva also uses many promotional loyalty programs that help address the seasonality of their business vertical and act as a refer-a-friend promotion to support customer acquisition initiatives. For example, any customer that spends over $50 on products between Black Friday and Christmas receives a $10 promotional gift card that is valid for redemption between the day after Christmas until the last day of January. Why make the cards valid only during a certain time? "This is a great tool when traffic might be a little off", Eskin said.

Additional promotional loyalty programs used by Godiva include a "gift with purchase". Eskin says, "Godiva's promotional loyalty program success is built on surveying our customers to understand what their personal interests are and building promotions that reflect those interests." Their recent free apron with a purchase over $30 promotion exceeded their expectations and sold out in less than 10 days.

Rick Kenney, Director of Strategic Initiatives with Demandware states, "Retention efforts like loyalty programs are clearly an efficient investment. Returning visitors are 9 times more like to make a purchase than a first time visitor."

In closing, Majkszak reinforced a few key points about successful loyalty programs - keep programs simple and keep them fresh, get ready to take your loyalty program mobile, incorporate social media and incent your influencers, and use promotional loyalty to keep your customers engaged and interested in your programs.

View The Recorded Webinar Here

Media Contact: Jordan Majkszak ProfitPoint, Inc., 8885416789, jordan@profitpoint.com

News distributed by PR Newswire iReach: https://ireach.prnewswire.com

 

SOURCE ProfitPoint, Inc.

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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