Extreme(ish) Couponing

Last weekend I felt like the focus of an Extreme Couponing episode. I had just received in the mail my first cheque from Checkout 51 for $23.50, I went grocery shopping for dinner and received 6₵ off every litre of gas at Shell from shopping at Foodland and at the register saved $10 off my total from Air Miles…but it got better. A few days later I went to Loblaws for a big grocery shop where I collect PC Points and had $90 off my grocery bill- $90! This still left me with a $95 total, which I was quite happy with. However when I went to add my new receipt to Checkout 51, I checked my PC Points first and it turned out on that day for every $50 you spent, you received 30,000 PC Points- this is equal to $30 at Loblaws. I was beyond happy, but also a little sad that I was $5 away from another 30,000 bonus points- next time!

That week I earned/saved $155.50.

So what I love about reward programs is that all of these programs change my buying behavior, which I am very aware of- but love it. Instead of using my debit card, I use my PC MasterCard for as much as I can- ex: I used it yesterday at Tim Horton’s for $1.75 to buy a tea. I then pay it off every month so I don’t have to pay interest yet still earn some serious PC Points a.k.a. free groceries. With Checkout 51, I take a look at it before shopping and if, for example, Pantene has a deal I will choose that brand over another so that I get money back on it. What I like is that I am still paying for things in a way that doesn’t inconvenience me, for things I would be buying anyway. Another thing I am very aware of, especially while sharing this post, is how much I love to talk about these programs I use. Lucky you, because I’m not the only one.

Rewards programs aren’t a new concept by a long stretch. But they’ve come a long way from the old stamp cards from your local pizza shop. Starbucks isn’t just the king of coffee, they have a fantastic rewards program- because it’s not just a rewards program is a customer loyalty initiative. By turning their coveted gold card into a digital app they have the ability to reach their customers at a moments notice and the results are incredible. Starbucks card payments account for 11% of their yearly gross revenue with 50% of members achieving gold card status (for those of you not in the know, that’s 35 transactions in a 12 month period). What’s really crazy is when you picture who has a Starbucks Gold Card we pretty much all have the same stereotypical image in our heads- a yuppie on the go with their smart phone glued in their palm ordering their half-caf triple venti 4 pump vanilla soy extra hot caramel macchiato. That’s not a bad thing though! They have a community built around their business, which totally fits in with the mission statement they live by which is ah-mazing. Having an app based program gives them the added option of “surprise and delight” offers personalized to each customers buying behavior- bonus stars on espresso beverages for those who only get drip coffee, or 25% off breakfast for those who typically avoid the pastry case.

What are the benefits to small businesses? I mean who wouldn’t love to turn their little artisanal café into a Starbucks conglomerate? Dream big guys but lets start small here. A loyalty program is going to do just that- keep them loyal and keep them coming back. More than that it’s going to help develop your CRM and ensure you have a point of contact with all of your best consumers. Not to mention the all-important insight into what they value most about your business. I’m not saying go take out a second business loan to develop an app for your business. There are plenty of businesses that have made loyalty their business (that got confusing-just go with it). Belly has made it possible to set up email campaigns, has a built in loyalty program, and gives you the much coveted customer insights. This can set you back between $129 and $209 a month but that cash can be made back no problemo. If that’s not a path you want to travel down that’s cool. I’m also a huge fan of groupon for giving customers deals which can conveniently coincide with a businesses down time or less popular products….I’m all about the deal! There’s also nothing that says you can’t go the way of Shell and partner with another neighborhood business providing value to both of you and all your lovely customers. The possibilities are endless- all I’m saying is that if you haven’t already it’s time to hop on the rewards/rebate/loyalty band wagon and let me know when you do so I can come save money.

Does your business use a reward program? What has your consumer response been?

Want to talk more about loyalty? Give us a shout!