loyalty card headaches... - Barista Exchange2024-03-29T13:29:30Zhttps://www.baristaexchange.com/forum/topics/loyalty-card-headaches?feed=yes&xn_auth=noIt's better for a parent to h…tag:www.baristaexchange.com,2009-08-27:1688216:Comment:6040372009-08-27T14:33:57.705ZMike Spencehttps://www.baristaexchange.com/profile/MikeSpence
It's better for a parent to have a pre-loaded card their kids use at a cafe / coffeeshop than cash that will go right into the local bar / liquer store!<br />
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<cite>Tim Noble said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/loyalty-card-headaches?id=1688216%3ATopic%3A600748&page=3#1688216Comment603627"><div>A few years ago, the stat was that about $.15 out of every dollar spent on a prepaid card (loyalty and gift cards) was/were (?) never redeemed. That margin goes a…</div>
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It's better for a parent to have a pre-loaded card their kids use at a cafe / coffeeshop than cash that will go right into the local bar / liquer store!<br />
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<cite>Tim Noble said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/loyalty-card-headaches?id=1688216%3ATopic%3A600748&page=3#1688216Comment603627"><div>A few years ago, the stat was that about $.15 out of every dollar spent on a prepaid card (loyalty and gift cards) was/were (?) never redeemed. That margin goes a long way toward mitigating the cost of the program itself. The tracking data is also a big gain.<br/>I'm hoping to market my cards to the local college kids who can talk their folks into adding it to the cost of living...</div>
</blockquote> A few years ago, the stat was…tag:www.baristaexchange.com,2009-08-27:1688216:Comment:6036272009-08-27T03:01:38.757ZTim Noblehttps://www.baristaexchange.com/profile/TimNoble
A few years ago, the stat was that about $.15 out of every dollar spent on a prepaid card (loyalty and gift cards) was/were (?) never redeemed. That margin goes a long way toward mitigating the cost of the program itself. The tracking data is also a big gain.<br />
I'm hoping to market my cards to the local college kids who can talk their folks into adding it to the cost of living...
A few years ago, the stat was that about $.15 out of every dollar spent on a prepaid card (loyalty and gift cards) was/were (?) never redeemed. That margin goes a long way toward mitigating the cost of the program itself. The tracking data is also a big gain.<br />
I'm hoping to market my cards to the local college kids who can talk their folks into adding it to the cost of living... Awesome!
Kathy Fadorsen said…tag:www.baristaexchange.com,2009-08-26:1688216:Comment:6033022009-08-26T19:46:58.333ZMike Spencehttps://www.baristaexchange.com/profile/MikeSpence
Awesome!<br />
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<cite>Kathy Fadorsen said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/loyalty-card-headaches?id=1688216%3ATopic%3A600748&page=3#1688216Comment603220"><div>We bought our coffee shop in sept of 06 At that time the store was doing a punch card system byuy 10 get $1.50 off the next drink we changed it to buy 10 get 1 free right away. We upgrated our register system in june of 07 and went with a gift card/ Loylaty card and started to track what people get we…</div>
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Awesome!<br />
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<cite>Kathy Fadorsen said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/loyalty-card-headaches?id=1688216%3ATopic%3A600748&page=3#1688216Comment603220"><div>We bought our coffee shop in sept of 06 At that time the store was doing a punch card system byuy 10 get $1.50 off the next drink we changed it to buy 10 get 1 free right away. We upgrated our register system in june of 07 and went with a gift card/ Loylaty card and started to track what people get we realized very quickly that their were a few people that were taking advantage but they were outnumbered 10 to 1. We now have a small hand full of just brewed coffee drinkers and that is all they ever get. The rest have at least 5 of the drinks of each 10 are a specility drink. I still give a free drink to people when the mood strikes as a extra but this program beats the cost of running coupons or just putting ads in the paper. The advertising we get for going the extra mile is priceless. I currently have over 800 cards issused and growing every day. I don't think it has devauled my shop or drinks. On the day they get the free drink they also tip more than they normally would. The few people that take advantage or just a cost of doing business. Also my gift card/Loyality card system has no per card swipe fee it is all free after buying the cards. We also have about 10% of our gift cards that have never been used.<br/><br/><cite>Jay Caragay said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/loyalty-card-headaches?id=1688216%3ATopic%3A600748&page=2#1688216Comment602286"><div>Can anyone actually show demonstrable results that really justify these cash outlays? Giving 10% or 25% away for free seems ridiculous since the Prime Rate is now below 4%. Driving down your prices to match those of the chains then giving away up to 25% of your revenue sounds crazy to me.</div>
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</blockquote> We bought our coffee shop in…tag:www.baristaexchange.com,2009-08-26:1688216:Comment:6032202009-08-26T18:27:01.839ZKathy Fadorsenhttps://www.baristaexchange.com/profile/KathyFadorsen
We bought our coffee shop in sept of 06 At that time the store was doing a punch card system byuy 10 get $1.50 off the next drink we changed it to buy 10 get 1 free right away. We upgrated our register system in june of 07 and went with a gift card/ Loylaty card and started to track what people get we realized very quickly that their were a few people that were taking advantage but they were outnumbered 10 to 1. We now have a small hand full of just brewed coffee drinkers and that is all they…
We bought our coffee shop in sept of 06 At that time the store was doing a punch card system byuy 10 get $1.50 off the next drink we changed it to buy 10 get 1 free right away. We upgrated our register system in june of 07 and went with a gift card/ Loylaty card and started to track what people get we realized very quickly that their were a few people that were taking advantage but they were outnumbered 10 to 1. We now have a small hand full of just brewed coffee drinkers and that is all they ever get. The rest have at least 5 of the drinks of each 10 are a specility drink. I still give a free drink to people when the mood strikes as a extra but this program beats the cost of running coupons or just putting ads in the paper. The advertising we get for going the extra mile is priceless. I currently have over 800 cards issused and growing every day. I don't think it has devauled my shop or drinks. On the day they get the free drink they also tip more than they normally would. The few people that take advantage or just a cost of doing business. Also my gift card/Loyality card system has no per card swipe fee it is all free after buying the cards. We also have about 10% of our gift cards that have never been used.<br />
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<cite>Jay Caragay said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/loyalty-card-headaches?id=1688216%3ATopic%3A600748&page=2#1688216Comment602286"><div>Can anyone actually show demonstrable results that really justify these cash outlays? Giving 10% or 25% away for free seems ridiculous since the Prime Rate is now below 4%. Driving down your prices to match those of the chains then giving away up to 25% of your revenue sounds crazy to me.</div>
</blockquote> Thanks for pointing that out…tag:www.baristaexchange.com,2009-08-26:1688216:Comment:6031302009-08-26T17:11:41.625ZMike Spencehttps://www.baristaexchange.com/profile/MikeSpence
Thanks for pointing that out Brady - I know that the overall sales went up in this survey as well. On the loyalty side, I think my point was muddled :). I have more people doing away with the traditional loyalty and moving towards methods of selling and re-selling the gift card. If you can make that gift card attractive by selling it at small actual loss ($5.00 of product is not $5.00 profit) then you can help boost business in other ways. Now, remember - I look at all of this through POS eyes…
Thanks for pointing that out Brady - I know that the overall sales went up in this survey as well. On the loyalty side, I think my point was muddled :). I have more people doing away with the traditional loyalty and moving towards methods of selling and re-selling the gift card. If you can make that gift card attractive by selling it at small actual loss ($5.00 of product is not $5.00 profit) then you can help boost business in other ways. Now, remember - I look at all of this through POS eyes with the thought that there is an easy way to track, market etc. It all changes if you are paying fees to use a gift card etc.<br />
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I love the discussion and seeing how all of you on the front lines are doing it! It's one of best things about bX!<br />
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<cite>Brady said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/loyalty-card-headaches?id=1688216%3ATopic%3A600748&page=2#1688216Comment603103"><div><cite>Mike Spence said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/loyalty-card-headaches?page=2&commentId=1688216%3AComment%3A603072&x=1#1688216Comment603072"><div>There are a ton of statistics out there on gift cards. One of our referral partners in the credit card industry (mercury payment) did a study on their customers last year and shared some of the results with me:<br/>Stores using Gift Cards had a higher average monthly credit card volume (more sales): It was an average of $1,222 compared to $929 without gift cards. <br/>Average monthly credit card volume was $41,882 vrs $30,336<br/><br/>I'd take this with a grain of salt - they work with a number of types of locations but I still think it shows a tiny bit of how this can help in stores. There are many other stats out there on this as well.<br/><br/><cite>Jay Caragay said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/loyalty-card-headaches?id=1688216%3ATopic%3A600748&page=2#1688216Comment602286"><div>Can anyone actually show demonstrable results that really justify these cash outlays? Giving 10% or 25% away for free seems ridiculous since the Prime Rate is now below 4%. Driving down your prices to match those of the chains then giving away up to 25% of your revenue sounds crazy to me.</div>
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<br/>I think Jay (and others, like me) was looking for loyalty card data.<br/><br/>Interesting gift-card stat. My question is, what about the overall sales? If it was unchanged, that is a pretty bad deal - their CC fees went up by 30%. We're looking for ways to REDUCE our number of credit card transactions without changing overall revenue (i.e. migrate people to cash or gift card).</div>
</blockquote> Mike Spence said:There are a…tag:www.baristaexchange.com,2009-08-26:1688216:Comment:6031032009-08-26T16:51:38.825ZBradyhttps://www.baristaexchange.com/profile/Brady
<cite>Mike Spence said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/loyalty-card-headaches?page=2&commentId=1688216%3AComment%3A603072&x=1#1688216Comment603072"><div>There are a ton of statistics out there on gift cards. One of our referral partners in the credit card industry (mercury payment) did a study on their customers last year and shared some of the results with me:<br></br> Stores using Gift Cards had a higher average monthly credit card volume (more sales):…</div>
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<cite>Mike Spence said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/loyalty-card-headaches?page=2&commentId=1688216%3AComment%3A603072&x=1#1688216Comment603072"><div>There are a ton of statistics out there on gift cards. One of our referral partners in the credit card industry (mercury payment) did a study on their customers last year and shared some of the results with me:<br/> Stores using Gift Cards had a higher average monthly credit card volume (more sales): It was an average of $1,222 compared to $929 without gift cards.
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Average monthly credit card volume was $41,882 vrs $30,336<br />
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I'd take this with a grain of salt - they work with a number of types of locations but I still think it shows a tiny bit of how this can help in stores. There are many other stats out there on this as well.<br />
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<cite>Jay Caragay said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/loyalty-card-headaches?id=1688216%3ATopic%3A600748&page=2#1688216Comment602286"><div>Can anyone actually show demonstrable results that really justify these cash outlays? Giving 10% or 25% away for free seems ridiculous since the Prime Rate is now below 4%. Driving down your prices to match those of the chains then giving away up to 25% of your revenue sounds crazy to me.</div>
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I think Jay (and others, like me) was looking for loyalty card data.<br />
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Interesting gift-card stat. My question is, what about the overall sales? If it was unchanged, that is a pretty bad deal - their CC fees went up by 30%. We're looking for ways to REDUCE our number of credit card transactions without changing overall revenue (i.e. migrate people to cash or gift card). There are a ton of statistics…tag:www.baristaexchange.com,2009-08-26:1688216:Comment:6030722009-08-26T16:25:06.016ZMike Spencehttps://www.baristaexchange.com/profile/MikeSpence
There are a ton of statistics out there on gift cards. One of our referral partners in the credit card industry (mercury payment) did a study on their customers last year and shared some of the results with me:<br />
Stores using Gift Cards had a higher average monthly credit card volume (more sales):<br />
It was an average of $1,222 compared to $929 without gift cards.<br />
<br />
Average monthly credit card volume was $41,882 vrs $30,336<br />
<br />
I'd take this with a grain of salt - they work with a number of types of…
There are a ton of statistics out there on gift cards. One of our referral partners in the credit card industry (mercury payment) did a study on their customers last year and shared some of the results with me:<br />
Stores using Gift Cards had a higher average monthly credit card volume (more sales):<br />
It was an average of $1,222 compared to $929 without gift cards.<br />
<br />
Average monthly credit card volume was $41,882 vrs $30,336<br />
<br />
I'd take this with a grain of salt - they work with a number of types of locations but I still think it shows a tiny bit of how this can help in stores. There are many other stats out there on this as well.<br />
<br />
<cite>Jay Caragay said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/loyalty-card-headaches?id=1688216%3ATopic%3A600748&page=2#1688216Comment602286"><div>Can anyone actually show demonstrable results that really justify these cash outlays? Giving 10% or 25% away for free seems ridiculous since the Prime Rate is now below 4%. Driving down your prices to match those of the chains then giving away up to 25% of your revenue sounds crazy to me.</div>
</blockquote> I'm with you on that, Bryan;…tag:www.baristaexchange.com,2009-08-26:1688216:Comment:6028222009-08-26T05:41:20.670ZFraser Jamiesonhttps://www.baristaexchange.com/profile/FraserJamieson
I'm with you on that, Bryan; we have a few regulars who, quite honestly, tip too much. Every now and then I tell them to stop trying to pass off counterfeit and I'll slide their money back to them. It's much appreciated; as is their business.
I'm with you on that, Bryan; we have a few regulars who, quite honestly, tip too much. Every now and then I tell them to stop trying to pass off counterfeit and I'll slide their money back to them. It's much appreciated; as is their business. Yeah, Jay, right on.
We had…tag:www.baristaexchange.com,2009-08-25:1688216:Comment:6024722009-08-25T23:57:06.567ZBryan Wrayhttps://www.baristaexchange.com/profile/BryanWray
Yeah, Jay, right on.<br />
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We had a loyalty card program, and then I was made general manager. I did some figures and put them in front of the owner. We did away with loyalty cards the next week. We allowed people to still cash theirs in if they had free ones, but we did not give out any more punches or cards.<br />
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When we did away with them you know what the most common thing we heard from customers was?<br />
"Oh, yeah, given how everything is that makes sense. Kinda saw it coming." Things to that nature.…
Yeah, Jay, right on.<br />
<br />
We had a loyalty card program, and then I was made general manager. I did some figures and put them in front of the owner. We did away with loyalty cards the next week. We allowed people to still cash theirs in if they had free ones, but we did not give out any more punches or cards.<br />
<br />
When we did away with them you know what the most common thing we heard from customers was?<br />
"Oh, yeah, given how everything is that makes sense. Kinda saw it coming." Things to that nature. Very little complaining.<br />
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Instead, now, a semi-common phrase around the shop is, "Hey _________, when was the last time we thanked you for being such a regular?"<br />
Confused look.<br />
We pass their money back across the counter and smile.<br />
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Guess where that money normally ends up?<br />
Tip jar.<br />
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-bry Can anyone actually show demo…tag:www.baristaexchange.com,2009-08-25:1688216:Comment:6022862009-08-25T21:03:28.536ZJay Caragayhttps://www.baristaexchange.com/profile/JayCaragay
Can anyone actually show demonstrable results that really justify these cash outlays? Giving 10% or 25% away for free seems ridiculous since the Prime Rate is now below 4%. Driving down your prices to match those of the chains then giving away up to 25% of your revenue sounds crazy to me.
Can anyone actually show demonstrable results that really justify these cash outlays? Giving 10% or 25% away for free seems ridiculous since the Prime Rate is now below 4%. Driving down your prices to match those of the chains then giving away up to 25% of your revenue sounds crazy to me.