How to Create a Rewards Program for In-Store Concessions
Creating a Food and Beverage Loyalty Program
Customer loyalty programs are everywhere these days, and for good reason. According to Nielsen research, 85% of Americans report belonging to one or more programs, and globally 72% say that, “all other factors equal, they’ll buy from a retailer with a loyalty program over one without.”1
Well-executed rewards programs have clear benefits. They drive revenue: Accenture research found that “members of retailers’ customer loyalty programs generate between 12 percent and 18 percent more revenue for retailers than do customers who are not members of the loyalty programs.”2
Why Loyalty Programs Work – and Why They Fail
Loyalty programs succeed by keeping your business top of mind for customers and helping to establish a relationship. If they can get a similar product elsewhere, but get rewards through you, chances are they’ll remember your store and choose it when they’re ready to shop.
However, not every program works, and it may take a bit of effort to understand what will resonate with your customers. The Nielsen research found that rewards like personalized experiences and higher priority service aren’t valued nearly as highly in the US as cash back and product discounts. Make sure you have a good grasp on what rewards your own customers will find valuable.
How to Create a Customer Loyalty Program for Sweet Shops and In-Store Concessions
Depending on the size of your business and customer base, you may choose to develop a single loyalty program for all of your products, or you can create a separate one for your private-label ready-to-eat food products.
While your main rewards program might focus on earning redeemable points, if you have a sweet shop setup or other snack bar in your store, you might want to consider a punch card that gives immediate rewards when customers have purchased a set number of products. Think a free bag of gourmet popcorn or slush drink after 10 purchases.
Starting a program with a punch card is easy: create a design with your logo and indicate where each hole should be punched. You can have cards printed at a local printer or online. Equip your staff with a specially shaped hole punch to reduce cheating and ask them to initial each punch. Suggest that employees ask customers about their rewards card during each transaction.
This is a simple way to make customers feel appreciated while encouraging repeat purchases of novelty items they can’t get anywhere else. Establishing your private-label products as highly desirable helps you continue to make substantial profits and create demand that only your business can meet.
If you haven’t added gourmet snacks and treats to your retail or grocery store yet, check out these reasons for bringing gourmet popcorn and more to your store.
1 Nielsen. (2016, November). Get with the Program: Card-Carrying Consumer Perspectives on Retail Loyalty-Program Participation and Perks. https://www.nielsen.com/content/dam/corporate/us/en/reports-downloads/2016-reports/nielsen-global-retail-loyalty-sentiment-report.pdf.
2 Accenture. (2016, June 16). “Members of Customer Loyalty Programs Generate Significantly More Revenue for Retailers Than Do Non-Members, Accenture Research Finds.” News Release. https://newsroom.accenture.com/news/members-of-customer-loyalty-programs-generate-significantly-more-revenue-for-retailers-than-do-non-members-accenture-research-finds.htm