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SpotOn, a 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.
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 15–50 percent 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.
Campaigns sent to loyalty members highlighting a promotion see an average open rate of 41 percent, compared to the 19 percent industry average open rate for email marketing.
Marketing campaigns that include a redeemable offer see open rates more than 20 percent higher than non-promotional emails, such as newsletters or announcements.
“This new data underscores that having a loyalty program doesn’t mean your work is done,” says Doron Friedman, cofounder of SpotOn. “Businesses that supplement their rewards program with consistent communication can amplify customer visits and dramatically impact revenues.”
SpotOn, whose stated mission is to be a Swiss Army Knife for small businesses, amped up 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,” Friedman says. “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 percent 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 15–20 percent,” says Bruce Chiang, owner of Davie, Florida, M&H Cafe.
SpotOn built their tablet-based loyalty app to function exclusively for Samsung’s Galaxy tablets and is partnering with Samsung to exhibit its technology at the 2014 National Restaurant Association Show, booth No. 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," says Jennifer Langan, director for mobility solutions marketing at Samsung’ Enterprise Business Division.