Spurr Loyalty Programs

December 23, 2020

Spurr’s digital loyalty program provides an automated and cost-effective way to retain your existing customers. Why? Because keeping one customer costs you 10 times less than acquiring a new one, depending on the industry you’re in.

A loyalty program can help you increase revenue in the following ways:

More Repeat Purchases: A loyalty program offers incentives for your best customers to visit and buy from you more often. These are the top 20% of your customers, who contribute up to 70% of total sales because they tend to spend more over a longer period of time.
Increased Purchase Frequency: A loyalty program offers incentives for your best customers to visit and buy from you more often. These are the top 20% of your customers, who contribute up to 70% of total sales because they tend to spend more over a longer period of time.
HIgher Order Values: A loyalty program offers incentives for your best customers to visit and buy from you more often. These are the top 20% of your customers, who contribute up to 70% of total sales because they tend to spend more over a longer period of time.

Spurr currently offers 4 types of Loyalty programs. You may select the program that best suits your business needs:

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Visit Based

The customer earns 1 stamp per visit with a minimum spend.

You may consider using a visit-based program if your customers visit your business on a weekly basis or more. We often see this in businesses with lower-priced items, like coffee shops.

Consider rewarding stamps based on a per-visit minimum spend, whereby the customer earns one stamp per visit if they match or exceed the minimum spend.

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Spend Based

The customer earns 1 stamp for every block of the minimum spend.

Spend-based programs are best if your customers visit your business once a month, or even less frequently. This usually includes businesses with high-priced items or long sales cycles.

Reward points based on the total amount spent before tax and tip. For example, 1 stamp for every RM10 spent on a purchase.

You can determine the value needed to reward your customers in a timely fashion using this equation:

Average customer return time (Days) x (Purchase requirement to earn a star) x (Number of stars required to earn a reward – 1) / Average transaction size = Time to reward

For example, a salon would like to reward clients for spending $100 or more on services. Its clients come in every two months for styling, and spend $75 per visit on average. The salon might consider a four-star program where clients earn a star for every $25 spent.

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Product Based

The customer earns 1 stamp per visit with a minimum spend.

A product-based loyalty program is best if you have a particular product you’d like to promote, such as a high-margin item or a best seller.

Reward points based on purchasing a specific item or category. For example, a drip coffee earns 1 point, a latte earns 2 points, and a sandwich earns 3 points.

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Cumulative Spend

The customer needs to achieve your defined total spend in order to earn a reward.

The total spend program can help encourage your customers to purchase more over a given period of time in view of the reward that you are offering.

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How to Reward Your Customers:

Earning rewards should not be difficult

Ever heard of hyperbolic discounting? It refers to the fact that people predictably prefer small rewards soon to larger rewards later.

Once we understand this, it makes sense that it’s better to have a small reward after a small number of visits (get 1 cup of coffee after 5 stamps) rather than a large reward after a larger number of visits (get 1 large chocolate cake after 20 stamps).

Most of our merchants require 8-10 stamps for a reward. Some like Fotofly (a photography studio in Utah) even give away a free session every 5 sessions.

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