Frozen Yogurt
Case Study
Overview.
This frozen yogurt shop located in Bowling Green, KY offers self-serve frozen yogurt, promoting good-tasting wellness with specially blended smooth & creamy yogurt.
They wanted a simple way to retain customers that stopped visiting or weren’t visiting very often. They also wanted a digital loyalty program with no apps or punch cards. Lastly, they wanted an affective method to promote deals, special offers, & new flavors. This study reflects how this company used this customer loyalty program to keep and boost revenue.
80% of Frozen Yogurt shop revenues come from 20% of the customers.
Acquiring a new customer costs 5 - 16 times more than retaining an existing customer. It is also much easier to sell to an existing customer than new ones.
Loyal customers can also be brand advocates. These are the people who are passionate enough to tell others about the shop. This helps grow the business in the best possible way, positive word of mouth.
Challenges.
To retain customers and get them returning more often, this merchant needed to know who they were. They needed to build a database of customers that could record when and how often they visited. Next, they needed a means in which to text them directly at random times and automatically when the customer had not visited in certain, measurable amounts of time.
Build a large database of customers to text directly
Promote special products & drive traffic to store
Provide incentive to bring lapsed customers back into the shop
Solution.
The kiosk provides an easy, fast method to sign up new customers to their text club. The loyalty program requires those customers to check-in every visit using their mobile phone number. The data provides activity data that can be used in Automated Text campaigns to bring lapsed customers back.
Use the kiosk platform for easy sign-ups and check-ins for the loyalty program
The Loyalty Program actively rewards customers who visit more often by giving a free yogurt up to 10oz to users who check-in ten times
The Loyalty Program allows the merchant to text directly with customers who haven’t visited the store in set amounts of time via the Automated Text feature
This text automatically sends to any user who doesn’t visit and check-in for 25 days. 32,910 sent with 1,721 redemptions (5.2%)
Advantages.
The kiosk placed at the point-of-sale location increases sign-ups as much as 10 times. The loyalty Program gives the ability to track customers’ habits and engage them based on specific criteria.
They use five specific Automated Texts to engage their subscribers. By using this strategy, they see upwards of 25% of their lapsed customers coming back each month.
1 hour after sign-up - $2 off $10
On Subscriber’s birthday - $2 off $10
25 days with no check-in - 10% off purchase
45 days with no check-in - 15% off purchase
60 days with no check-in - 20% off purchase
