PLUM GOOD DEAL Attract customers and bring them back again and again -- via their cell phone.
By Abbie Westra
Windermere, Fla. -- Within the aisles of the February NAFEM Show, in the FS/TEC pavilion, a new tech company revealed its text message-based loyalty program to potential customers.
"Only 50% of emails are read within the first three days, whereas 90% of text messages are read within the first hour," explains Jonathan Goodyear, president of PlumReward. "Where that can really come in handy is real-time offers."
PlumReward allows retailers to send coupons and promos as text messages to participating customers, with tracking capabilities to assess customer visits and coupon redemption.
There are two ways for customers and retailers to use PlumReward. When a customer makes a purchase at a participating store, they can enter their cell phone number into the PlumReward device -- a countertop, pda-type tool. The retailer can then send messages with coupons and special promotions directly to the customer's cell phone. Then each time they make a purchase and enter their number into the device, PlumReward logs their visit. They can then earn free items or discounts based on their purchase history.
Meanwhile, the retailer can also use the service in their marketing and advertising material, telling consumers to text a certain code to PlumReward to receive a coupon. The system then differs from other text-based promos by allowing the retailer to track who is coming into the store to redeem the coupon.
"Even if the customer decides not to take action directly and go to your business, they are now subscribed so that the next time you have something to say, you can still talk to those people who at one point in time expressed an interest. And maybe on the second or third time you communicate with them they decide to take action."
Goodyear hopes retailers will see PlumReward as a more effective alternative to card-based loyalty programs. With PlumReward, all loyalty club information is stored within the customer's phone number, so they aren't required to remember a card, coupon, or email.
When it comes to offering promos, Goodyear has some advice for operators. He has found that one-day coupons tend to get lower redemption than a coupon with a three to four-day lifetime. "But then again you don't want to extend it much past a week because your redemption rates start to go down because people don't feel the urgency to use the coupon. It's a delicate balance.
"Also, people like to see the word 'free,' so determine what they have to purchase to get something for free."
PlumReward sends out a newsletter to clients with tips for campaigns and case studies on promos that have proven successful. The program also allows stores to target specific users, such as those who have not frequented the company in some time. Current PlumReward users include Planet Smoothie, Jersey Mike's and Quiznos.
Windermere, Fla. -- Within the aisles of the February NAFEM Show, in the FS/TEC pavilion, a new tech company revealed its text message-based loyalty program to potential customers. 