One of the most popular and successful loyalty programs in our software is issuing stamps.
Here is a typical offer. A person comes into the shop and buys something. Every time they buy, they get a stamp in our case an electronic listing too so here after ten (10) visits on the next trip, they get something.
This sort of offer works for anything, greeting cards, coffee, pet food, haircuts, etc.
Now follow where the problem arises.
At first, the customer comes in and buys a product. They are notified of the offer, so they get a card. One item stamped so they are 10% into it (1 stamp out of ten), and they work their way to ten. But here is the issue, once the person has their free article, they start again from zero. Starting from zero does not motivate people much.
So here is a better way to do it.
Make program active on the 12 visits.
Here is how it should be done.
- When the person first comes into the shop and buys something, they get one stamp for joining. They then get a stamp for their first buy. So they are starting with two stamps. This gives them the feeling that they are getting closer to their reward as now they are 17% (2 stamps out of 12) through it.
-Once they redeem their free item, they get a new card with one stamp credited for rejoining the program. They get another stamp for the free offer they redeemed. This overcomes this problem of them starting with zero as now they are at 17% again.
Give it a try and see how you go. Then let me know.
