If you’re selling our system as being a “discount” or “coupon” service, you will get a negative, knee-jerk reaction from some merchants. Businesses who over-coupon will find over time that their customers are being taught to only pay discounted prices. When 80% of a merchant’s business comes from 20% of its customers, the last thing we want to do is undermine the merchant’s bottom line by discounting to their most loyal customers on a regular basis.
Our system is a “loyalty” solution, not a “coupon” service. Our Masterminds help to identify and UPSELL customers by providing added value and increased product awareness through regular mobile engagement! Hair Salons, for example, are not interested in discounting hair cuts that frequent customers would have bought at full price. They’re interested in getting that same customer to by a bottle of product in addition to the service. Customers love the idea of receiving additional services for free or at a reduced price because it feels as though they’re getting hooked up with something exclusive and unexpected.
It comes down to customer types at the end of the day. You have your regular customers (whom merchants don’t want to discount to) and you have the irregular customers (whom merchants have had to spend money on to get in the door). Merchants need to understand that the core of loyalty marketing is never to undermine their bottom line, but rather to upsell regulars and increase the frequency of the inactive customer. This is accomplished by targeting the two groups strategically with different offers. Provide greater value without discounts to frequent customers and buy back irregular customers with enticing discounts and offers.
SMS Masterminds does not only provide the technology to accomplish this strategic engagement, but also the training and best practices of loyalty marketing. With over 1.2 million subscribers in our network we must be doing something right!