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NRA 2017 NEWS: Targeting Less Frequent Guests Key to Growing Loyalty Programs

Paytronix Systems, Inc. explains that targeting low frequency guests is the key to loyalty program impact in its latest brief, “Target low-frequency guests. Here’s why.” Defining critical mass as the point where more than 15 percent of checks can be attributed to the loyalty program, the Paytronix Data Insights report reveals that, as a good program matures, the majority of new members come from low frequency and infrequent guests. This guest segment presents the marketer with the largest opportunity for increasing the number of times these guests visit a brand - resulting in more incremental visits won from competing brands. 

As the Paytronix Data Insights report explains, medium to high-frequency guests will be the first to join a brand’s loyalty program. However, by month four, the proportion of new members who have medium-to-high visit frequency drops to nearly one-sixth, with the majority of new members falling within the low and infrequent segments.

 The Paytronix Data Insights team has determined that a brand usually cannot reach 15 percent penetration by enrolling only its best guests. And to achieve higher levels of penetration, it is even more important to be skilled at enrolling lower-frequency members. According to the Paytronix brief, getting low frequency guests into your program requires:

Target the program design to the right segment – Focus the design on low-frequency guests. They will need to understand the value proposition quickly and be compelled to join on the spot.

Make it easy to join the program – Offer multiple ways to join the program, such as through mobile apps, text-to-join, mobile-friendly registration web pages, kiosks, iPads in the store, and even paper registration forms.

Always be enrolling – Your servers are the programs’ best ambassadors. They must understand how it benefits them, it must be simple for them to use, and it must be easy for them to explain the benefits to guests. Falling short in any of these three areas will likely discourage your servers from inviting guests to join the program.

Paytronix embraces Big Data, bringing together POS, loyalty, social media, and other disparate data sources to discover new opportunities for compelling visits and spending. The team answers the question, “what should we do and why?”  This report from the Paytronix Data Insights research team is provided to help brands uncover actionable insights for more effective use of their marketing investment.

The brief will be available at the Paytronix booth (#6070) at The NRA Show.
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