Loyalty Programs -

Business By pichou Updated 22 Apr 2011 , 3:33pm by bbkk

pichou Posted 21 Apr 2011 , 3:09am
post #1 of 10

i'm thinking of offering a customer loyalty program. would anyone have suggestions of what might have worked in the past?

9 replies
Jenn2179 Posted 21 Apr 2011 , 4:11am
post #2 of 10

We have punch cards. Buy 18 cupcakes get the 19th free. I have 12 different flavors of cupcakes available for walk-ins and then do custom cakes.

indydebi Posted 21 Apr 2011 , 2:35pm
post #3 of 10

This is slightly different but I had a 5% referral program. Did it for 30 years. Alice refers Betty to me. Betty buys a $150 cake. Alice earns $7.50 toward her own cake. Alice could use it against a cake or save up referrals to apply to one cake that is totally free down the road.

One guy asked me, "You mean if I referred enough biz to you to earn $2000, then you'd do a thousand dollar event for free?" I said, "Yep! Because for you to earn $2000, that means you referred $40,000 in biz to me. And doing $2000 for free as a thank you is worth it to me!"

It turns every customer into a salesman for you. they are out there scounging up customers for you. With doing catering, my brides earned about $150 or more with each referral. Had one bride earn a free wedding cake 'coz she sent me 3 brides from the Knot. She sent me over $6000 in biz; I did a $300 cake for free (which actually only "cost" me around $100). I spent $100 ..... got $6000 in return. pretty cool deal! thumbs_up.gif

Here are a few testimonials about how the program works: http://cakecentral.com/cake-decorating-ftopict-423103-referral.html

bbkk Posted 22 Apr 2011 , 10:13am
post #4 of 10

Indydebi, your loyalty program sounds fantastic and is something I would like to copy (if that is ok with you). I need to think about this and set boundaries, then roll out for myself.

Can I just check please - was the 5% reward only applicable to the first order by the new customer that the current customer referred to you? Thanks for helping. I've been a lurker in this forum and find the info shared here so helpful.

AmysCakesNCandies Posted 22 Apr 2011 , 12:06pm
post #5 of 10

In my thank you notes for my larger cake customers I include a 5% off card for a future order, 1 for them & 1 to share. I have gotten a few referals from them.

bbkk Posted 22 Apr 2011 , 12:52pm
post #6 of 10
Quote:
Originally Posted by AmysCakesNCandies

In my thank you notes for my larger cake customers I include a 5% off card for a future order, 1 for them & 1 to share. I have gotten a few referals from them.



Hi Amy, can you explain what you mean by "1 for them and 1 to share" please? I understand the 5% off voucher/coupon for a future order part icon_wink.gif, just unsure about the 'share' part.

indydebi Posted 22 Apr 2011 , 1:48pm
post #7 of 10
Quote:
Originally Posted by bbkk

Indydebi, your loyalty program sounds fantastic and is something I would like to copy (if that is ok with you). I need to think about this and set boundaries, then roll out for myself.

Can I just check please - was the 5% reward only applicable to the first order by the new customer that the current customer referred to you? Thanks for helping. I've been a lurker in this forum and find the info shared here so helpful.




Alice referred Bettty. Betty spent $300. Alice earned $15. Betty orders another cake 2 months later. Alice gets nothing for that one because Betty is a returning customer, no longer a referred customer.

good question! thumbs_up.gif

bbkk Posted 22 Apr 2011 , 2:38pm
post #8 of 10

Crystal clear now, thank you so much for clarifying.

AmysCakesNCandies Posted 22 Apr 2011 , 3:20pm
post #9 of 10
Quote:
Originally Posted by bbkk

Quote:
Originally Posted by AmysCakesNCandies

In my thank you notes for my larger cake customers I include a 5% off card for a future order, 1 for them & 1 to share. I have gotten a few referals from them.


Hi Amy, can you explain what you mean by "1 for them and 1 to share" please? I understand the 5% off voucher/coupon for a future order part icon_wink.gif, just unsure about the 'share' part.




In the note I thank them for thier business, give the web address for reviews and say something along the lines of "the best compliment you can pay me is to recommend me to your friends & family" and I include 2 5% cards (basically a business card with the promo on back). I am a small one woman cake studio so I usually know if 1 of those coupons coming back to me is from a previous customer or a refereal.

bbkk Posted 22 Apr 2011 , 3:33pm
post #10 of 10

Ahhh, understood. Thank you icon_smile.gif

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