Market research RE: loyalty programs

• justincredible

  

  I Wear Pants;1271720 wrote:Of course I read the stats, I do not allow facts to get in the way of mediocre jokes.

  
  Meaty oaker.
• justincredible

  

  Any other feedback here?
  
  From the responses I've got here and on twitter so far the program is already pretty much what people would want/expect. Which is nice that we're doing the right things already. Still gotta find ways to improve it, though.
• gut

  Why give discounts on a product they appear to be regular buyers of? Is it something they can really buy more of (in your deodorant example, I would say no). So you would only be cannibalizing the profit margin. To grow sales, you would want to offer complementary products, maybe at a discount to trial. If you can't do that, then look for partnerships to tie-in you could take a cut of (maybe shampoo, for example, so long as they have no deodorant line).
  
  I don't know. It's not a question that can be answered without knowing more about WHY customers buy your product. Do they buy because they like the brand/quality (i.e. less price sensitive)? Deodorant, for example, I think most people just buy what they like so long as it's competitively priced. Wouldn't expect discounts to do anything but give away margin. Usually such discounts are kind of "one-time" up front to get someone to join a loyalty program.
• justincredible

  

  gut;1274687 wrote:Why give discounts on a product they appear to be regular buyers of? Is it something they can really buy more of (in your deodorant example, I would say no). So you would only be cannibalizing the profit margin. To grow sales, you would want to offer complementary products, maybe at a discount to trial. If you can't do that, then look for partnerships to tie-in you could take a cut of (maybe shampoo, for example, so long as they have no deodorant line).
  
  I don't know. It's not a question that can be answered without knowing more about WHY customers buy your product. Do they buy because they like the brand/quality (i.e. less price sensitive)? Deodorant, for example, I think most people just buy what they like so long as it's competitively priced. Wouldn't expect discounts to do anything but give away margin. Usually such discounts are kind of "one-time" up front to get someone to join a loyalty program.

  Customers buy because it's effective and there are really only one or two other competitors.
• sportchampps

  What does your competition offer
• justincredible

  

  sportchampps;1274931 wrote:What does your competition offer

  Honestly, I'm not sure. I'm just the developer trying to find ways to improve the program. I don't know much about the competition other than the fact that they exist.
• Apple

  

  justincredible;1274008 wrote:Any other feedback here?

  Who buys deodorant twice a month?
• justincredible

  

  Apple;1274937 wrote:Who buys deodorant twice a month?

  It was an example. I just threw a product out there.
• gut

  justincredible;1274867 wrote:Customers buy because it's effective and there are really only one or two other competitors.

  Then I'm honestly confused why you would give away margin when price appears to have such little impact on the purchase decision. Would seem to me a more effective use would be to share distribution savings (i.e. discounts for buying in bulk) or to increase sales in lower periods to make demand more consistent throughout the year so as to maximize production efficiency.
  
  The point of loyalty programs, or any sales promotion, is to increase sales and/or increase margins. Doesn't sound like this program does either.
• gut

  justincredible;1271080 wrote:A lot have entered one code. A lot have entered the max of, I think, 25 codes.

  The company needs to focus on the people who have entered one code. Ton of information missing here, but the one thing that might say is most of the former customers are trialing and not buying again. There's a sales opportunity there.
  
  The ones entering the max are costing margin if they aren't buying because of the coupons, but maybe the data has business value to the company.