Using a loyalty system encourages your customers to keep coming back to you, but also at the same time encourages them to spend more.
Using the Salon Rewards Loyalty System, you gain all of the benefits of the famous branded Loyalty Systems, at a fraction of the investment.
These benefits lead to the ultimate goals of business growth and security, through increasing your profits by keeping your customers happy.
In order to boost sales, many businesses turn to discounts to attract more customers. Unfortunately, the problem with discounts is that although sales may increase, the costs to your business stay the same. This can lead to the negative situation of having to work harder, and sell more, to earn the same amount of profit as you would selling less at full price.
With Salon Rewards, you avoid the discount trap by rewarding your customers with Loyalty Points every time they spend money with you. Customers collect their points until they reach totals where they can redeem them against future purchases. What this effectively does is, encourage customers to return to you, and encourage them to spend more with you.
So now instead of depleting your profits through discounting, you are actually putting a system in place that will increase your profits through repeat business.
A la Carte is a restaurant that has 15 tables, all of which can seat 4 people per table. The maximum number of people that can eat in the restaurant at any given time is 60. During a “full house” period where each person spends an average of £10, the business makes a gross income of £600.
The total cost to the restaurant, which includes, running costs, staff costs, and the cost of the ingredients, works out at an average of £7.50 per person. This leaves a total cost of £450 during a “full house” period.
The profit then during this period works out at £150 at a rate of 25%.
However, if A la Carte decides to try and increase sales by offering a 10% discount to all diners, during the same “full house” period, its gross income is only £540.
The total cost to the restaurant stays the same at £450. The profits are now reduced to £90 and show an 8% decrease at just 17%.
This however, is not the only problem. The major difference is that whilst the restaurant is full it is making a lower profit than it would if it served 36 customers at full price.
The difference is that it has to sell nearly half as much more at a discounted rate to make the same amount of profit as it would at full price.
The tables below sum this up:
|Number of Customers||60|
|Average Spend per Customer||£10|
|Cost per Customer||£7.50|
|Profit per Customer||£2.50|
|Total Profit %||25%|
|Number of Customers||60|
|Average Spend per Customer||£9|
|Cost per Customer||£7.50|
|Profit per Customer||£1.50|
|Total Profit %||17%|
The Difference: the Discount Strategy Results in an 8% loss in Profits.
So whilst discounts may increase the number of sales you make, you require substantially more sales to reach the same level of profits as you would selling at full price.
By using the Dining Rewards Loyalty System you never have to give discounts away again. Instead, you reward your customers with Loyalty Points, which they collect to the value of what they spend. You decide the ratio, it could be 1 point for £1 or 20 points for every £10. Once your customers start collecting the points, they save them up to reach targets that you set.
A scheme running on the ratio of 20 points for every £10 spent will awards its customers a free meal once they reach 200 points.
In order to get to that target though, a customer has to spend at least £100 to earn the reward.
When a customer reaches that level you have already then established that they are – loyal to you, a returning customer, and a frequent spender. You choose what rewards to give, and by using Dining Rewards you have ended the dependency on discounts to try and drive up sales, and reinvested in your future growth, creating profitable and lasting relationships with your customers.
“The Trivial Many and the Critical Few” - Pareto's Law
Never has this rule applied so critically when considering your source of income. Your source of income is your customer base, and 80% of your regular income is attributable to only 20% of your customers. This 20% are your regular, returning customers. The other 80%, conversely, only make up 20% of your income.
In terms of the restaurant and hospitality industries, this means that the 20% are those who return to you are making up your repeat business and consequently your business security. The remaining 80% are those who “walk in” and don't come back.
Salon Rewards takes this principle and works upon the 80% of “walk in” customers and through the running of the Loyalty System converts them across and increases the 20% of your core, repeat business.
Al a Carte restaurant analyses its monthly income and finds that it has taken £10,000 from the sale of 1000 meals. Further analysis shows that 800 of those meals were purchased by only 20% of the customers during that period. The other 80%, 200 meals, were purchased by “walk in” diners.
In order to increase sales and profitability Al a Carte decided that it would start a campaign to capture customers from the 80% of “walk in” diners, and get them to become a part of the critical 20%.
The table below shows a forecast of the potential sales increase by applying the 80/20 rule:
|% of Returning Customers||Meals Sold||Revenue (£10 average spend per meal)|
Not only do return customers help your business to grow and become more profitable, they actually cost you less than new ones. What this means is that in order for to attract new customers you have to advertise, and the costs of advertising can spiral upwards and take away considerably from your profits. However, if you have a customer who returns to you, he or she does not cost you anything.
Salon Rewards works to give your customers the added incentive to return to you, building upon this principle and saving you considerable time, money, and effort upon advertising for new business
In reality, it is unlikely that you will convince 100% of your customers to become part of your core, repeat business, but the effects of increasing only a small proportion of your customers to keep returning has a massive impact on your sales and revenue.
By using the Salon Rewards Loyalty System, you are putting in place an incentive scheme for customers to return to you. By offering rewards every time they visit you, you are creating a compelling reason for them to keep coming back and spending more.
By rewarding your customers every time they spend money with you, you are providing them with an incentive to spend more. By offering “bonus points” on particular product lines you can make the difference between your customer buying just a main meal, or getting a starter, a dessert or an extra round of drinks. Using reward points as an incentive to spend you can offer bonuses for particular items on your menu, for example, those items that represent the greatest profit margins.
Once you have happy customers who visit you regularly they are more likely to refer your restaurant to their family and friends. The impact of customer referrals to any business is one of great consequence in terms of increasing your sales and revenue. If you succeed in holding onto your referrals then your new customers will also refer you to their family and friends, and a referral chain has been set in motion.
Salon Rewards gives you the opportunity of capitalising on the referral strategy by giving your present customers added incentives for referring their family members and friends to you. You can do this by awarding bonus points for every referral a Loyalty Card Holder makes.
Mr Smith is a Loyalty Card Holder at Al a Carte restaurant. The manager runs a promotion to Loyalty Card Holders, where if a cardholder refers a family member or a friend, he awards them with 100 bonus points. In order to track the referrals accurately, he uses a Salon Rewards Referral Card, which he explains to the cardholder when he pays for his meal.
Mr Smith then refers his work colleague John who visits the restaurant and hands over the referral card when paying for his meal. The manager rewards John by giving him a Loyalty Card and loading it with 100 bonus points. The next time Mr Smith visits the manager awards him the 100 bonus points for the referral and given the opportunity to refer more people in the future.
The added advantage of the referral chain, once it is established, is that it does not cost you anything in advertising costs for new customers, and with a minimum of effort involved, it can create a steady stream of increased profit to your company.
Whilst being beneficial to your profits and business growth, Salon Rewards also shows your customers that you value them. Without your customers, you would be out of business, and so by maintaining a high level of service you demonstrate to them that you are thinking about them. Salon Rewards gives them a real world symbol of their value through a Reward card, and by giving your customers something back for their business, you are showing that you value them and their repeat custom. In return, you are fostering loyalty that will ensure that they think of you ahead of your competition.
When a customer joins your loyalty scheme they fill out a membership form and with this form you collect their contact details. This simple form gives you access to those people who are most likely to buy from you again – your previous customers. Now that you have their contact details it is easy to reach them and let them know about your promotions, and encourage them to visit you again.
What's more, with a Loyalty Scheme, you are guaranteeing 3 things:
It is around these 3 facts that the big companies like Tesco, the Nectar group, and Boots base their highly successful loyalty systems. If you have one of these cards you will understand why. For example, when one of these companies send out a points statement to a customer, they can guarantee that the customer will open the mail because the customer wants to find out how many points they have, and what they are entitled to. What these 3 companies then do is include information about all the current promotions that are running to draw their customers back. The success of these loyalty systems run by these huge companies comes down to the simple fact that they are marketing their products to the people who are most likely to buy from them – their previous customers – and providing them, through running a loyalty system, with the incentive to continue to purchase from them.
With Salon Rewards, you can take advantage of exactly the same marketing strategy as the giant companies like Tesco, at an investment each month that works out to be less than a one-day advertisement in your local newspaper.
With Salone Rewards you don't have to worry about spiraling setup costs, nor lengthy, costly consultations. You can be running the system on the same day that you receive it, without any complex training, and without any interference, to the point of sale system, you are currently using.
The Loyalty Cards that your customers use with the Salon Rewards System are high quality, credit card style plastic cards. Branded with your company logo and artwork, these cards create an impression of quality, exclusivity, and professionalism that is difficult to achieve using any other medium. The Loyalty Cards that you give out, because they fit comfortably in a customer's wallet or purse, act as a constant reminder of your business to both your cardholder and those that they show their card to, and also ensure that they are never left at home or forgotten.
Salon Rewards is a unique customer loyalty system tailored for the restaurant and hospitality industries. The system uses a handheld smart card reader, and a customer loyalty card with which customers collect points for the number of times they visit the restaurant, and the amount of money they spend there.
Customers are given a loyalty card to use when they visit your Salon. They then use the card to collect points in a ratio to the amount of money that they have spent with you. Your customers then build up their points with each visit until they decide to redeem them at a future time.
A simple example would be that for every £100 a customer spends with you they get a 100 points. With a 100 points a cardholder will then be able to redeem their points against their purchases.
For example a 100 points might qualify them for a free main course, dessert or starter, or you might decide that points can be redeemed against final payment of the bill. The system works so that you don't have to simply give away your profits through discounts, but instead your customers, by returning to you and spending more, earn rewards for their loyalty. In effect you are creating incentives for your customers to choose you over your competitors, by giving them rewards and showing them thorugh a Loyalty System that you value their business.
The Salon Rewards Loyalty System encourages your customers to become loyal to you, and in return for their loyalty you give them something back in the form of reward points that they then redeem with your business. This relationship, whilst not only demonstrating how much you value your customers, generates repeat business; increasing the frequency of customer visits, and the amount of money they spend during each visit.
Manufactured by GEMPLUS the world's leading smart card solution provider, the Loyalty Terminal is a handheld device, powered by a battery. The terminal also comes with a cradle stand that it slots into when it needs to be recharged.
This simple to use device works in exactly the same way as a calculator. Actually, it's simpler, because it only adds or subtracts.
The Loyalty Terminal can be programmed to take into account the “Trip Value” of the loyalty scheme that you're running. What this means is that, if you are running a scheme whereby each cardholder is awarded 1 point for every £1 spent you can set the Terminal up so that all you have to do when awarding points is to key in the amount of money spent, and the terminal works out the correct total of points to be added.
A transaction consists of:
*Fast *Effective *Portable *Easy to use.
The Loyalty Terminal is programmed using special Key Cards, and these are very simple to use. The Manager Card allows you to set the time & date, and as mentioned above the trip value of the scheme you are running (if you want to set this up). The Clerk Card is the card that you use to set the Terminal to Add or Subtract points from a customers card, you put the card into the Loyalty Terminal and it is then set into “Clerk Mode”, once this has been done you insert the customer's Loyalty Card and then Add or Subtract points. The other Key Card is the Add Points Card, and with this card, you can Add Bonus Points to a customer's card, outside of a scheme running a “trip value”.
This is the card you will give to your customers, and which they will collect their points on, it is a pre-programmed smart card that enables the Loyalty System to run.
When the card is inserted into the terminal, the terminal reads the information on the card by accessing the microchip that is embedded into the card. When points are added to the card, the Reader simply writes the information onto the microchip.
The Loyalty Package comes with training cards for you to practice and get familiar with the process of Adding and Subtracting points with the terminal before you start using the system. You will find the system is easy to operate and will be using it confidently in no time at all.
Salon Rewards Loyalty Manager Software turns your handheld loyalty system into a powerful marketing package.
The Smart Card Reader links up to a laptop or PC via a simple cable that plugs into your computer serial port. The Reader links through the cable to our software on your PC and uploads all of the smart card readers transaction information, which is then stored on your computer.
You collect customer information via membership forms when they apply for a loyalty card, and with this information you build a database of customer names, addresses, dates of birth, phone numbers and so on, this information combined with the uploaded data from your smart card reader gives you access to a powerful tool to organise intelligent marketing campaigns based on the visting and spending patterns of your customers.
The software provides you with a database of your customer information, and a transaction history of all points added and subtracted from the cards. From this information you can generate reports to analyse the data. This data can help you in targeting specific groups of customers offering promotions aimed at different age groups, rewarding your most frequent customers, targeting specific anniversaries such as birthdays, and encouraging your less frequent customers to return more often.
GCR Attendance Report:
This is the main report that gives the user the following information:
This report can be used by the user to keep track of cardholder's transaction information and to see the total number of visits, and transactions within a specified date range, or for the total number of visits by all cardholders to date.
This report allows the user to create a list of those cardholder's whose birthdays fall within a selected month. This information can be used to target cardholders with special birthday promotions. The details can be used to merge with a letter template to then can be sent out to each customer offering discounts on products and services.
This report allows the user to view a list of cardholders who have reached a certain points threshold e.g. 250 points and who could then qualify for a special promotion. A special letter template is created to send out to these cardholders informing them of their qualification for the promotion.
The report also allows the user to view those cardholders who are under a certain points threshold e.g. 50 and then allow the user to pro-actively target the cardholders with a special promotional letter to encourage them to return to the store and gain more points.
Other reports include: the Card Activity Report, the Card Archive Report, the Card Audit Report, Hotlisted Cards and the Card Details Report.
The software allows you to utilise a variety of different templates for promotional letters and flyers, which are linked into the system so that the customer information from reports and the database is inserted into the templates via a mail merge. These templates can then be posted or emailed to your customers. All you have to do is decide which template is right for your specific campaign, and then either click to print or to email.
All the templates are customisable for your specific promotions and to integrate your company artwork.
Dining Rewards Plus allows you to go to the next level of customer relationship management, providing you with valuable information about your customer spending patterns, which can then be used to give you an edge in marketing your business and increasing your profits.
The software is easy to operate and comes with full instructions. Training and telephone support can be provided.
The loyalty cards used in the system are printed on plastic, credit card style cards. The cards are printed by dye sublimation to create a professional image and a surface resistant to fading and flaking of colours.
Your Loyalty Cards will be branded with your artwork and company logo and designed to meet your requirements. We can also provide artwork and advice on the most effective design for your company.
This is a white card with a single colour print on the front. You can choose the colour of the ink from red, blue, black, green, gold or silver.
This is either a gold or silver card printed with blue or black ink. This card creates a powerful image of exclusivity and quality.
This is a full colour card that can be printed on either a white card or on a different coloured smart card, smart card colours include white, black, gold, silver, red, blue, green and yellow.
All types of cards can be embossed with the customer name and card number, or any other text you require.
Signature panels can be printed on the back of the card for customers to sign and increase personalisation of the card.
Printing can also be done on the reverse of the card, specific to your requirements, generally, this is in the form of “terms & conditions” or other information. It is also possible to print images and photographs in single and full colour on the reverse.