Bicycle shop Loyalty configuration

GeoffreyHawkGeoffreyHawk Member Posts: 12

We've had Loyalty since March and have been waiting for eComm integration before delving into it heavily -- not really benefitting from our monthly fee. So we decided to push forward with POS-only. We are a bicycle retail shop (sales/service/accessories/rentals). I would love to learn of some best practice implementations from other bike shops:

What one-time rewards?

What point rewards?

What birthday reward?

What loyalty program enrollment reward?

What groups?

What campaigns?

I want specifics! Tires. Tubes. Accessories. Labor. Rentals. Name names!

We are located in Santa Rosa, CA, so you don't have to respond if you are a friendly competitor located nearby. :)

Thanks.

Geoffrey

10 comments

  • JLC1990JLC1990 Moderator, Lightspeed Staff Posts: 29 moderator

    Hey @GeoffreyHawk !

    I am a Product Specialist that works with Loyalty, and although I may not be able to give you specific answers to all of your questions, I thought I could give a few ideas and tips can can help give some weight to your Loyalty system.

    So in regards to giving Points for Product rewards, there is no real "right or wrong" but, one area that can be seen as a negative in this department, would be having too few options. The Points Rewards are supposed to be a catalog that your customers can browse and find what is right for them, by having more options, you give yourself a better chance of catering to more that just one group. So what kinds of rewards should you make?

    • Percentage discounts: These can be great if you have similarly priced items, if a group varies too much then you have less control over what amount is being given back. Use these for categories or target items you are trying to move.
    • Dollar Discounts: These will be useful for having the control over what you give while still directing your customers to areas of your shop where they can hunt for a bargain. This is also easy to set up for a blanket application on the whole store as you know exactly how much they spent to earn this reward.
    • Free Items: This one is tricky, free means were taking a loss on an item, but we do give the customer that ultimate feeling of being rewarded! You can discount specific items by adding their System ID with 100% off the item. Use this for Services or small items where you can afford to give a bit more.
    • Invoice Discounts: You should have a few of these in your system. Loyalty can not stack discounts, so to be able to have your customer choose how many points they want to give up, and how much to get off we need a range of Invoice discounts in your system. *Pro tip: Put the Highest ones at a slight points discount, this gives them an incentive to keep coming back and get a better bang for their buck*

    Now... onto the Campaigns. In this section I say the more the merrier, having a robust set of Campaigns available shows that you are committed to giving back to your customers. Even if you give something small for a VIP customer, or one that has been away for 30+ days, you are still trying you give your customer the best experience possible. In my opinion, there are a few that are a must, naturally the Pay and Earn campaign is very important, but I would also add the Sign up Bonus at the very top. Some people can't see the long term benefits and ask "What's in it for me right now?" and with the Sign Up Bonus, you have an answer. The VIP program can also be a great way to make certain customers feel special, anyone can sign up for Loyalty, but when you get that VIP text you know you are one of the top customers in the shop, it creates a stronger bond between Retailer and Customer. Be sure to have these in your program.

    As for the Groups, these can be handy to reach out to those that have taken part in certain areas of your shop. If they responded to a certain e-mail promo you did, if they're a VIP or one of your recent shoppers, you can cater e-mails and messages to them.

    "Hey, I saw that you took part in our Black Friday promo, as a thanks for including us in one of the busiest shopping days of the year, we sent you a little something extra!"

    It is the personal touch that separates you from other shops in your industry and that will make them remember you.


    Hope this helps, but I would love to keep the conversation going. If you have more questions like these or want to add on your own, comment below!

    Cheers!,

    Jordan L-C
    Lightspeed Retail Support
    Lightspeed HQ
  • GeoffreyHawkGeoffreyHawk Member Posts: 12

    Thanks a million for this discussion! Very helpful. Loyalty is a difficult system to wrap one's head around. I plan to re-read your post multiple times!

    Can you elaborate on this point you made? I don't quite understand. Can you give a simple example of the 'pro tip' you talk about?...

    You said: "Invoice Discounts: You should have a few of these in your system. Loyalty can not stack discounts, so to be able to have your customer choose how many points they want to give up, and how much to get off we need a range of Invoice discounts in your system. *Pro tip: Put the Highest ones at a slight points discount, this gives them an incentive to keep coming back and get a better bang for their buck*"

  • GeoffreyHawkGeoffreyHawk Member Posts: 12

    'Loyalty Sign Up Bonus'. When a customer makes a purchase and I hit the blue button in the CHECKOUT window (if I remember to, which I usually don't), they get a text message. Does that mean they are now signed up and entitled to all the reward benefits? Or do they have to follow the link to supply their full name and email to get the reward benefits? It doesn't seem to matter whether they supply their email/name/birthday info, because they can redeem rewards on their next visit even if they haven't provided the info.

  • GeoffreyHawkGeoffreyHawk Member Posts: 12

    How does one delete a ONE TIME REWARD? There is no delete button.

  • GeoffreyHawkGeoffreyHawk Member Posts: 12

    We have 116 CUSTOMERS in loyalty. Of those only 19 have furnished LNAME and FNAME. I don't know how many have furnished EMAIL and BIRTHDATE because that information is no available on any report that I have found.

    Question: How does a business owner get these remaining 100 or so customers to provide the email, name and birthday information?

    Question: If they don't provide that information, are they still participants in the program?

    Question: How can I see what SMS or email messages have been sent, and to whom? And when?

  • JLC1990JLC1990 Moderator, Lightspeed Staff Posts: 29 moderator

    Hi @GeoffreyHawk

    Quite a few questions in there, so lets start to break them down.

    -You had asked for a few examples for the invoice so I have added one below:

    If our aim was to have a 5% back promo and offer 1 point per dollar, we could say that 100$ spent would look something like this

    100 points = 5$ off

    200 points = 10$ off

    500 points = 25$ off

    but then we can make the larger spenders more incentive to save up and keep coming back.

    900 points = 50$ off instead of 1000 points.

    This could be a great way to get them to keep coming back and having better deals for the bigger rewards. You don't have to use the same scale, but the concept is a great option.


    -Now, onto the other questions. You had asked about the sign up process, and when the customer is officially signed up. The moment we enter the phone number, they are signed up and full fledged Loyalty Members. Having said that, it is best to urge them to click the signup link and complete their profile. Most aren't aware they have to do this, so that may be why you have fewer full profiles. They can still collect points and redeem rewards, but in order to market to them better, it is best to encourage and remind them to fill the profile.

    Now, that brings up the question, how can I do this on the fly while operating?

    The trick is when adding a Loyalty customer onto a sale, you will be able to see this as they will have the note "Enrolled in Loyalty", if you click your Loyalty button, you will see their Loyalty profile. If they have the Name and phone number there, they have completed the sign up. If it is just the phone number, then click the "Resend" button on that page and encourage them to complete their profile.


    -Another question you asked was how to delete a One Time Reward. At this time they can not be deleted, but they are not customer facing, so as long as they're not tied to any campaigns then the customers will not see them.


    -Lastly, you had asked about visibility on the texts and e-mails sent to your customers. For the texts there is no way to see which customers have received or looked at the texts, but you do have visibility on the e-mails sent. This is specific to the Templated e-mails, but once sent you can see the history and the opening rates associated with them.

    Now I do believe that addresses the works, but let me know if I left anything out or if you have any follow ups. It is great to get the conversation about Loyalty going, and exploring ways of using the program.

    Cheers!,

    Jordan L-C
    Lightspeed Retail Support
    Lightspeed HQ
  • GeoffreyHawkGeoffreyHawk Member Posts: 12

    Thank you very much! This is indeed a good conversation, getting my creative juices going.

  • VintageWineGuyVintageWineGuy Member Posts: 39

    @GeoffreyHawk I think we are in similar situations with Loyalty - I am on Omni and trying to manage in-store vs. online loyalty (I know we have another thread on that). I have had the same problem with getting people to add emails, and also have had ongoing arguments with LS about getting emails of existing customers loaded in so I can use the email functionality.

    But sharing some experiences on Loyalty, one of the big things we landed on was getting the math right on points. We ended up landing on roughly a 2% cash back basis for points. Our old Loyalty program was based around 5%, but rewards expired. Since they don't expire with Lightspeed, we reduced it to 2%.

    So you earn 1 pt = $, and redeem at 1 pt = $.02. So we have a 500 pt for $10 reward, etc. But we have also been posting more physical rewards that have a lower redemption value but higher perceived value. Like "Free Bottle of Wine" where we use higher margin bottles so people feel like they are getting more but it costs us less. We have also been building out some "whale" rewards - high end wines for many thousands of points so people have something to aspire to. We also have been getting promo materials from distributors and using that as rewards so we don't have to pay for it.

  • GeoffreyHawkGeoffreyHawk Member Posts: 12

    Great to hear from you. Good discussion. Why did you settle on 2% instead of 5%?

    Thanks for the idea about promotional items; we have a few of those which I will put up as rewards right away! I need to always be thinking of loyalty -- instead of just giving stuff away because I'm a nice guy (and want to be loved), I should always treat 'give-a-ways' as loyalty rewards, so they have more perceived value.

  • VintageWineGuyVintageWineGuy Member Posts: 39

    We did 2% because it was more in line with credit card and travel programs, and our competition doesn't really have a similar program. And because I didn't want to create too much margin erosion between loyalty, discounts, promotions, etc.

    Many credit cards advertise 2% cash back, so we have been leveraging the same messaging. Points from the major travel programs (airlines, hotels, American Express rewards) are even worse. Amex points exchange at 1 pt: $.005 to cash - that's 1000 pts to get $5. Marriott, Delta, American Airlines are all in the same or worse.

    To your point, I view loyalty as a way to drive loyalty, traffic, and build a list for promotion - not as a way to give things away. So we needed to keep parity with the "loyalty market" but didn't feel the need to make it too generous - especially given the points don't expire. I don't need a 5% liability on my books at the end of the year.

    I am hoping we get some option for points expiration. Expiration after 12 months inactivity is a must to keep from accruing too much debt on the books. If we had an approach like Starbucks with a rolling expiration (your "stars" expire 12 months after you get them) we might bump the value up.

    My two partners are nice guys and want to be loved too. I am evil, mercenary, and like money! So since I set it up, we are keeping it low. ;)

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