|By Business Wire
|May 14, 2014 10:07 AM EDT
the leading digital loyalty and marketing platform for small businesses,
announced new data revealing that merchants who maintain frequent
communication with loyalty program members see three times more customer
visits than those that do not send any communications. The findings are
based on user data since February, 2014, when SpotOn launched their
Campaigns feature which enables merchants to send real-time, digital
offers to invite customers back. More than 2.5 million consumers
currently use SpotOn’s loyalty card or smartphone app to obtain rewards
at approximately 6,000 businesses nationally, including single-location
merchants as well as large chains like Chick-Fil-A and Denny’s.
The figures point to a direct correlation between communication and
increased customer activity, specifically:
Increased Customer Visits.
Small businesses that send loyalty members two to three communications
per week see three times more customer visits than businesses that do
not send any communications. Merchant sales reportedly increase anywhere
from 15% to 50% as a result of Campaigns. The data also found that while
consistent communication is good, there is a tipping point that can lead
to diminishing returns. Businesses that send more than 13 Campaigns per
month see reduced customer visits.
Heightened Customer Interest.
Campaigns sent to loyalty members highlighting a promotion see an
average open rate of 41 percent, compared to the 19% industry average
open rate for email marketing.
Customers Favor Deals To Email Newsletters.
Marketing Campaigns that include a redeemable offer see open rates more
than 20 percent higher than non-promotional emails, such as newsletters
“This new data underscores that having a loyalty program doesn’t mean
your work is done,” said Doron Friedman, co-founder of SpotOn.
“Businesses that supplement their rewards program with consistent
communication can amplify customer visits and dramatically impact
SpotOn, whose stated mission is to be a Swiss Army Knife for small
businesses, pioneered the digital loyalty and marketing platform in
2012. In February, the company unveiled a redesigned merchant dashboard
with more robust marketing features to enable businesses to better
target customers and track ROI. “In minutes, businesses can craft and
send new offers to customers via email, mobile push notifications,
Facebook, and Twitter,” continued Friedman. “We’ve also simplified the
redemption process for businesses and customers. Instead of printing a
coupon or presenting an offer code, Campaigns are redeemed digitally via
the Samsung tablet on the merchants’ counter.”
More than 60% of SpotOn merchants have already sent at least one
Campaign. “I've been in business for 7 years. We hit a record day in
sales after trying our first Campaign several weeks ago, and we’ve
already increased year over year sales 15 to 20 percent,” said Bruce
Chiang, owner of Davie, Florida M&H Cafe. Santos Chavez, General Manager
of Coast Car Wash in Long Beach, CA said “It’s like we’re married to
every customer. We send deals to loyalty members twice a week, and
typically see 900 to 1,000 redemptions.”
SpotOn built their tablet-based loyalty app to function exclusively for
tablets, and is partnering with Samsung to exhibit its technology at
the 2014 National
Restaurant Association (“NRA”) Show, booth #9166 at Chicago’s
McCormick Place on May 17-20. "We’re excited to partner with a company
that shares our belief in the potential of technology to not only
enhance the guest experience, but also have a significant impact on the
bottom line for restaurants and other businesses," said Jennifer Langan,
Director for Mobility Solutions Marketing at Samsung’ Enterprise
The annual NRA show hosts more than 62,000 attendees and nearly 2,000
For more information, visit www.spoton.com
SpotOn offers a consumer-facing loyalty platform and a merchant-facing
marketing machine. For consumers, SpotOn eliminates the need to carry
multiple punch cards with a seamless digital check-in to access rewards
and perks. Using SpotOn's tablet-based dashboard, merchants now have an
entirely new and simple way to connect with their customers using
social, mobile and email marketing. With one click, merchants can learn
more about their customers by viewing typical spend and campaign
redemption activity. SpotOn was founded by serial entrepreneurs with
decades of experience helping local businesses increase profits with
technology solutions. SpotOn is headquartered in San Rafael, CA, with
offices in Chicago, IL. For more information visit www.spoton.com.
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