A customer loyalty program, sometimes known as a rewards program, gives your small business an easy way to reward your customers for doing what you want them to do: coming back and giving you repeat business. You already have a base of loyal customers, and creating a customer loyalty program helps you strengthen those relationships. For newer customers, or those who are still deciding how much they like you, a loyalty program can be just the right incentive to keep you front of mind and keep them coming back to your brick-and-mortar store.

Need convincing that customer loyalty is critical to your business? Try reading these posts on customer loyalty and the value of customer retention.

Elements of a Customer Loyalty Program

Implementing a customer loyalty program is a pretty simple matter. You need to make it easy for people to sign up, preferably in several ways: a short form to fill out when they’re shopping or checking out in the store, an easy form to fill out online via your Facebook page, blog, and/or website. (You can do it in conjunction with growing your e-mail list – we explain step by step how to do this here.) Once people sign up, you need to have a system for keeping track of those in your loyalty program; you want a single place with all the information on each customer who has opted in. That way, when you do special mailings or offers, you have your mailing list right there.

The third element of a successful customer loyalty program is the rewards that customers can “earn” by continuing to give you repeat business. Rewards programs can be simple, and are usually very low cost to the business, but they need to be measurable and tangible. Your customers need a tangible reason to opt in to the loyalty program, and you need a measurable way to see what you’re investing in the loyalty program and what kind of return you’re getting on it.

Types of Customer Loyalty Programs

Points system: this is what airlines and credit card companies use. In simplest terms, a point is awarded for every dollar spent, though the ratio may vary (1 point for every 1.50 dollars, for example). When a customer accrues a certain number of points, they can be redeemed for a product or service offered by the company or, often, by a partner company.

For small businesses: this system is simple in theory but can get a little complex to keep track of without an electronic system. Be sure you have an accurate way to track the points earned by your customers and to track when those points are used for rewards. You’ll also need to set up a rewards scale with specific prizes or options for certain amounts of points.

Discount system: many retail businesses use a discount system for loyalty programs. This works well for both retail shops and restaurants. For every purchase or for every dollar amount spent (could be $10 or $20 or whatever level you choose to set), the customer receives a credit. Once the customer has earned a certain number of credits, he gets a discount, perhaps a dollar amount or percent amount off on their next purchase.

For small businesses: this system is easy to implement and track. Generally, businesses use a punch card type system and customers simply show their card when it is full to receive their discount. Another bonus of this system is that the reward actually brings in even more business.

Freebie system: similar to the discount system, the freebie system is often used by cafes and coffee shops. When a customer makes a sufficient number of purchases or spends X amount of dollars, she gets a freebie. A coffee shop might offer one free coffee drink for every ten cups of coffee purchased, or a free pound of coffee for every ten pounds of coffee purchased.

For small businesses: this system is also easy to implement and track using a punch card set-up, and customers love the idea of getting something for free. It’s also easy for small businesses to track the amount of money they’ll invest for each customer, and it’s usually minimal. Retail shops can always offer freebies too, and it’s a good way to get rid of excess inventory.

Image by Easa Shamih.

This is a post in the “How to Create a 2011 Local Business Marketing Plan”* series. Some of it will be shared here on [resultsrevolution.com]. The rest will be shared via my free newsletter. Get the newsletter to get the full planning series.

Don’t Put Yourself at a Disadvantage at the Start

Whether planning or executing a small business marketing plan, one of the biggest failures I see is in the area of branding. In particular, brands seem to disappear – or at best – are very weak. With that in mind, I want to encourage you that as you think towards 2011 that you renew your dedication to your small business brand (or establish one – if you’ve never cared about branding before).

Nuts & Bolts of a Small Business Brand

We’ve talked about branding basics before. You can read more about it here without me re-hashing the basic elements of visual logo, color scheme and domain name.

Behind every good brand are the “nuts and bolts” that hold it together. The breath that gives it life. And that’s what I want to focus on right now.

In my experience, there are two basic types of businesses: there are businesses that have to compete in a category (men’s clothing, ladies shoes, groceries, etc.) and those that created and own a category (like the lost and unclaimed baggage store in Alabama). The second category is pretty rare. But both categories need some branding “nuts and bolts” in order to survive because we ALL compete for the spending dollars and attention of consumers.

What will make your business stand out – no matter how “typical” it’s product – is the personality and culture of the business. Before you can promote a brand – you have to have a brand. And a brand is simply boiled down to be your reputation.

Your Brand is Your Reputation

That’s right, the logo, color scheme and domain name are just the elements that propel your brand into the marketplace. Your reputation IS your brand.

The Chick-fil-A Example

Chick-fil-A has the fun-loving personality of a bunch of cows campaigning that we all “Eat Mor Chikin.” Their antics and creativity are the “reputation” upon which the brand that sells an average chicken sandwich has soared to amazing heights of success and profitability.

The Broad Street Baking Company Example

On a local level, our client, Broad Street Baking Company, has embraced a colorful (literally) bunch of employees from all walks of life to meet, great and sell with the same enthusiasm that embodies their owners Jeff Good (a former technology sales guy  whose passion for community and people is contagious) and Chef Dan Blumenthal (a descendant of a baking family from New Jersey who loves driving very fast cars and can create amazing menu items in every possible menu category). They live the “Have You Hugged Your Baker Today?” mentality that fronts their famous t-shirts, and they also rock and roll through the day just like their new “Grateful Bread” t-shirts attest. They keep life jazzy and full of fresh colorful flavor – on and off the plate – a colossally successful recipe in a town full of great sandwiches.

The Peru Paper Company Example

On the flip side, another client, Peru Paper Company, is filled with heart-warming, genuine goodness that spills over into every life it touches – whether employees or customers. Her brand is the story of changing lives by giving previously impoverished workers a way to provide for their families safely and with dignity – and by spreading a culture of helping others in everything they do stateside and abroad. Their story is their brand – a story that is constantly unfolding because it is the “breath” of who they are. A different kind of brand – but one filled with the brand “nuts and bolts” that lead to success. (Want to read their story about “Cards That Care,” check out this online article out today.)

What is Your Brand?

As you set your sights on 2011, make a list of the elements of your own personality and that of your business that you wish to embody more fully in the new year. Branding needs a CONSISTENT presence that you and your employees can live. It must be your business personality naturally – and fit your business culture naturally. As you cannot force yourself to be someone you are not, you cannot force your business to be something it is not. Find the “nuts and bolts” of your business, then explore ways to bring them more into focus in 2011. Look at the case studies above – and others that you see around that are making their mark – in a highly competitive market. I guarantee it’s because they are far from vanilla – they have a brand that is memorable and consistent. They know who they are – and they’re BEING THEIR BRAND.

Here are just a few more small business branding ideas for you as you embark on this part of your 2011 Marketing Planning journey.

How will you BE YOUR BRAND in 2011?

Twitter can be a powerful marketing and outreach tool for small, brick-and-mortar business. You can reach out to and engage with your local market, and you can also reach further than your local boundaries. But you’ve got to start with a few basics if you want Twitter to promote your business rather than just take up your time! Most Twitter “failure” comes from just not knowing a few basics, and then getting lost in the question of “Okay, now what?”

There are three basic rules of Twitter business use; and these rules define the purpose of your tweeting. Every tweet you send out should accomplish one of these three purposes: to entertain, to educate, or to engage.

Rule 1: Tweet to Entertain

You already know your potential Twitter audience has lots of choices, so don’t bore them with mundane items like “Just drank my 3rd cup of coffee” or “really bored today.” They’re looking for something new, interesting, something they don’t already know or can’t easily find out for themselves.
For example, if you’re a chef or restaurant owner, you can provide endless entertainment by giving people an “insider view” of the kitchen. (Here are more restaurant marketing ideas.) Think about all the reality TV shows, cook-off shows, and celebrity chefs out there; people are nuts about knowing what really happens inside a commercial kitchen. Remember, this stuff may seem mundane to you because you live it every day, but for the average person, this is intriguing, different, and thus, entertaining.

Examples:
“Just cracked 142 eggs for the batter for our fried fish.”
“I’m slicing up the fresh tuna just flown in… will be the chef’s special tonight!”
“Making up 3 gallons of hot fudge sauce for our dessert special.”
“Lettuce just arrived from the produce market; half of it is bad, going to have to redo the night’s menu.”

Rule 2: Tweet to Educate

Think about what the average guy doesn’t know about your business, product, service, or specialty that you do know. Tweet about what you have expertise in; remember, it may be day-to-day stuff for you, but it’s new, interesting, informative, and educational for folks who don’t work and live this subject daily. Get into the educational aspect of your business; maybe you’re a retail shop owner (more retail ideas here), a restaurant owner, or a service-based business. You might not think of yourself as an educator (education-based marketing is a winning strategy), but take time to think about how you would train a new employee, or explain a process to a new contractor. What do people find fascinating about your business? What expertise do you have? Break that knowledge down into bite-sized pieces, and you’ve got educational Twitter material just waiting to be shared.

Examples:
“Just got in a new shipment of linen skirts. Linen is one of the most durable materials out there! Always wash it in cold water for longest life.”
“Picked up some great heirloom tomatoes from the local farmer’s market today. Check the market out – they’re open every Saturday.”
“Best time of year to put a new coat of paint on your home’s exterior is fall. Anybody know why?”

Rule 3: Tweet to Engage

One of the biggest things people fail to use on Twitter is the question mark. Ask questions; lots of questions. And when you see questions related to your topic, answer them! Ask for input, ask for opinions, ask for help. And be ready to offer your professional input, expert opinion, and help whenever you can via Twitter interaction. Answering a question or responding to a direct message on Twitter only takes a few seconds, but it can gain you a fan who will share that information with all their friends… and so on it goes that leads to sales.

Examples:
“Which new dessert should we add? Vanilla bean cheesecake or apple crumble with caramel sauce?”
“Having an open house at the store for Halloween; Anybody know a great bluegrass band for hire?”
“What’s your favorite fall clothing item? Boots, sweaters, scarf, something else?”

Don’t waste other people’s time; stick with tweets that entertain or educate or engage (or all three, even better) and you’ll be using Twitter successfully to build, promote, and expand your local business.

Photo By: Spencer E. Holtaway

So you’ve decided to host a holiday event at your locally owned, brick-and-mortar retail or restaurant business. You’ve got a night picked, a theme, and you’re busy planning decorations, entertainment, food… and, of course, plenty of holiday specials to boost those end-of-year sales. You’re on the right path, but the one thing you don’t want to forget is promotion. If you don’t put some time and planning into promoting your big date, you might have a very small turn-out. And after all the work you’re putting in, you want a great response. Here’s how to get one:

First: Identify the specific reasons people will want to come to your holiday event.
You think it’s going to be fun, and you know you want to boost sales. But you can hardly invite the general public – or even your favorite customers – to a special night just to “help boost my sales.” So you need to figure out the appeal for your customers. Is it the great food? The holiday atmosphere? The amazing deals and one-night-only specials? The entertainment? The raffle with over-the-top prizes? The chance to support a charity (here are some ideas in these posts), be part of the community, or get a coupon or freebie by bringing a friend?

Second: Think about all the ways you can communicate with your customers.
Do you have a business website? That’s one way.
How about a business blog? There’s another way. (Here are some business blogging ideas if you need them.)
A Facebook page?
A Twitter account?
An email list?
Those are your online options.
How about the local newspaper? Are there any community or trade magazines? Do you advertise on radio? Do you have a mailing list of customers? An ad in a local newspaper can be relatively inexpensive and can be a great way to promote your event. You might also look into community calendars, both online and in local print publications. Many will put your event on the calendar for free.
You can create a postcard or invitation and mail it out; you can create brochures and hand them out. You can hang signs in the windows of your store.

Don’t forget simple word-of-mouth as well. Have your employees invite every customer who walks in the door. It’s even better if you can hand each customer a paper invitation or flyer, so they can take the information home. Offering a “reward” (such as a special discount, coupon, or freebie) for every friend a customer brings to the event is a great way to increase word-of-mouth.

Third: Partner with other local business owners.
Think about the other businesses in your area. Some may not be set up to adequately host their own holiday event; would they be interested in becoming an event partner? They can help sponsor the event, cut some of your costs, advertise their own products or services, and promote the event to their own customers. Many professionals such as lawyers, CPAs, and consultants, may work from a small office or from their own homes; hosting an event may not be feasible for them, but partnering with you can be a great option. You both benefit from the increased exposure and from the new prospects you will bring to each other.

Fourth: Do something every day to promote the date.
Invest some money in traditional advertising, if you can. Post daily updates and news about your event online. And make a few phone calls, personally inviting people to the event. Five phone calls each day can add up to quite a lot of responses when the event rolls around.

A well-planned, well-promoted, and well-executed holiday event will not only boost your end-of-year sales, it will also leave your customers with a delightful impression of you and your business. You’ll get a chance to mingle with customers new and old, build new relationships, and re-establish old ones. And that kind of investment will carry over well into the year to come.

Image by Smart Destinations.

Tis the season for a holiday marketing strategy. Want to sell more in your retail store or restaurant this year? Try these marketing tips for your holiday sales event, and we bet you’ll sell more stuff!!

Know what people like about the holiday seasons? It gives everyone the excuse to party a little bit more. Holiday events – complete with holiday food – are one of the things people like most about the winter holidays. From Halloween bonfires and chili fests to New Year’s Eve late-night bashes and appetizer buffets, the whole gamut of winter holidays gives us all plenty of opportunities to get together, celebrate, eat, and enjoy the season.

So why not use the natural inclination we all have to mingle and munch? Create a holiday event for your brick-and-mortar local store; invite your customers; promote it publicly; and then be a great host or hostess and watch sales happen.

Keys to a Successful Holiday Event

First, you’ve got to create some holiday spirit.
Don’t try to host a Christmas open house if the only decoration you have is a spindly wreath on the front door. Put up a Christmas tree, hang some lights… you know, deck the halls. Get a selection of Christmas music and make sure it’s playing throughout the party. Make the place smell Christmasy by burning cinnamon-scented candles or having a big bubbling pot of apple cider.

The point to remember is that if you’re going to invite your customers in to celebrate the holidays at your retail store or restaurant, you need to create a holiday-themed, celebratory atmosphere. Go all out.

Second, give people a reason to linger.
Food is a key ingredient in a successful event; have plenty of munchable items and a selection of drinks. Make it easy for people to munch, browse, and talk. Keep trays and drinks refilled.

If you’re hosting a holiday event in your restaurant, your food options increase exponentially. You can host a themed dinner, a dessert party, anything you want because you’re equipped with the kitchen and seating. If you’re a retail shop, set up a food area and a bar, hire a couple of servers, and make the food easy to eat (think finger food) so people won’t struggle with using a fork while balancing a plate and a cup.

Entertainment is always a good option as well. You can have party games, a live band, an old holiday movie showing on a big screen, a raffle, a dance floor, a stage for karaoke. It’s up to you and what will work for your space and resources. People don’t need expensive, fancy entertainment to have a good time.

Third, display your products prominently.
Don’t be shy about what you’re trying to sell. Create holiday specials and make big, beautiful displays to show them off. Make it easy for people to see what you’re offering. You might consider having a raffle or giveaway and let one of your holiday specials be the prize. Offer special, event-only discounts and deals. Go over the specials with all your employees so they can easily show them off to guests.

Use your online presence (website, blog, Facebook, Twitter) to promote your event. If you have an email list, send out a special invitation to your email customers. Put up signs in your store. Put an ad in the local paper. Invite the town and be sure they know what you’re offering: food, drink, entertainment, a fun night out. And, of course, some of the best deals of the holiday season.

Image by ms. Tea.

I teach a small business marketing seminar for locally owned businesses that’s called “EIGHT Ways to Make Your Cash Register Ring in Any Economy.” In this seminar, one of the eight strategies that we outline is what we call “Pursuing Partnerships & Alliances.”

There are several different types of partnerships or alliances that work really well and should all be used liberally in local businesses and restaurants.

1.  There is the alliance or strength gained from “riding the coattails of an industry elephant.” This happens when you carry a major national brand in your store that is doing national advertising – and you mimic elements of that advertising campaign in your own marketing messages or images. This same strategy can be accomplished when you ride the coattails of a major trend (such as the green or environmentally friendly movement) or a major cause or organization (such as a political, religious, or industry promotional campaign).

2. There are the partnerships that participate in cooperative marketing programs generated or promoted by local or regional organizations. This strategy is implemented when local businesses join together under the banner of a common cause or organization. This would be the case when a Main Street or Chamber pools your money or even fronts the money for a promotional campaign for all of the businesses involved or to promote a certain shopping district or event.

3. Finally, there are those alliance that businesses make directly with one another. These are created with the purpose of co-promoting one another’s business. This is best configured when two or more businesses are targeting the same demographic or target audience, but they do not have a competing product. (This works regardless of geographic area – it works if you’re close geographically – it works when you’re not.)

Think about it. Are you using all three of these Partnership/Alliance strategies to grow your small business? You might be blown away by the results. I know I have been in my own business and in the businesses of our clients. Think about how you can work with others and get started today!

Photo Credit: exfordy

Want a free, easy way to keep customers “in the loop?” Use Twitter to connect – even with so-called – “non-Twitterers.”

1. Create a Twitter account for your business. (Want to know more about how to do this for optimum success? Check out our webinar.)

2. At every point of contact, let folks know to TEXT/SMS message: “Follow YourTwitterHandle” to 40404. That’s no quotes, the word FOLLOW,  a single space, then YOUR twitter handle. For example, if you were to follow me, you would text Follow ResultsRev to 40404.

3. Tweet out the insider info you’ve promised and it’ll get delivered, free of charge, straight to your customers and prospects cell phones.

I mean, what if the sign in this picture above instead said:

Shop Local. Text 40404

Follow MisterTAwards

It’s that easy… there’s really nothing else required of your customer or prospect AT ALL.

What are some other points of contact (besides exterior signage or billboards) where you can tell folks how to do this?

• Events – handouts, signage or verbal instructions
• Bag stuffers in your store
• Check presenters in your restaurant
• Point of sale signage
• E-mail marketing, web site graphics, posts on your Facebook wall

There are endless opportunities – don’t miss them! This is a marketing tip that really is THAT easy…

Photo Credit: Seven_Null7