You’ve likely heard of the 80/20 rule, also called the Pareto Principle. In the retail world, it simply states that 80 percent of sales come from just 20 percent of customers. Which is why it’s so important to develop a loyal customer base.
In addition to providing a great product and equally great customer service, there are a number of ways a retailer can grow repeat business, including loyalty programs, gift cards, promotions and offering the convenience of a physical and digital card. Vantiv, a leading payment processor, has found a way to combine all of these into a single product, called the StoreCard, which seamlessly integrates with a retailer’s point of sale system. Homeslice Pizza of Durango, Colorado decided to implement the StoreCard a couple years ago. Here’s a look at their experience.
Durango sits in the southwestern part of Colorado, known for its scenic beauty and outdoor activities. It is also home to HomeSlice Pizza, a restaurant popular with local residents and students from nearby Fort Lewis College. Owner Cory Kitch, who started HomeSlice in 2002, and his partner Erin McCahill today operate two locations. Business is good, but like any restaurant, it can always be better. So 2+ years ago, Cory and Erin decided to try out the StoreCard.
What is the StoreCard?
The StoreCard combines a loyalty program and gift card with the convenience of allowing a customer to use a physical card or their mobile device. As a gift card, it comes customized with the retailer’s logo and info, and can be preloaded with any amount. It is easy to reload online when funds are used, or even set up to reload automatically. For HomeSlice, this has been very popular with parents of college kids. Cory said what he loves about the card on phones is “people looking at their phone can be reminded, ‘I have ten bucks at HomeSlice so I’m going to go there for lunch.’”
As a loyalty card, the StoreCard allows retailers to automatically track and reward customers by number of visits, purchases or however they’d like. The card also makes it easy to remember customers with promotions and on special occasions, such as their birthday.
The StoreCard is simple for customers to use, as they can either provide the card when they make a purchase, or can scan the card into a mobile wallet on their phone and just use their phone for purchases.
“It’s so easy and it’s quick. It’s just boom, scan it and it’s done, on to the next person. It makes our life a lot easier, makes everyone’s life a lot easier, and helps us sell more pizza,” Cory said. “I can see where all this can go and it’s pretty cool.”
How do you implement it?
The StoreCard is designed to work seamlessly with your POS system and implementing it is easy. You simply choose the benefits you want to offer and after a quick set up, start promoting and selling the card to your customers.
“At first, I thought it was going to be difficult, but actually, I learned how to do it myself quickly,” said Erin. “Training my staff has been super easy…everyone says, ‘OK, we can do this.’”
What are the benefits of the StoreCard?
StoreCard helps builds brand awareness, with a physical presence in both the customer’s wallet and on their mobile device. It makes issuing and processing gift cards simple, allows for easy reloading of cards and gives a great platform for sales promotions. And it differentiates a retailer from their competition and enhances their brand.
“When I flip through my phone and there’s Starbucks and HomeSlice Pizza ... oh yeah, we’re up there with those guys,” said Cory with pride.
So, can a loyalty and gift card program really help a retailer’s bottom line? According to Inc. magazine, acquiring a new customer costs 5 to 10 times more than selling to a current customer and current customers spend 67 percent more on average than those who are new to a business. What’s more, 65 percent of gift card recipients spend 38 percent more than the value of their gifts. Implementing a program like the StoreCard, which combines a loyalty and gift program in a physical and digital card that works seamlessly with your existing POS system, is a great tool to help keep customers coming back and grow sales.