Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
Issue link: https://read.dmtmag.com/i/658171
Customer Engagement 64 Beverage Dynamics • March/April 2016 www.beveragedynamics.com reaching out to a customer when their favorite vintage goes on sale or recommending the specific bottle of wine they bought for a dinner party last month, customers want to know that retailers are paying attention to them and their shopping habits. "Thoughtful engagement with customers on a consistent basis can not only increase loyalty and long-term value among existing customers, but it can also help attract new customers," Herian says. "This will ultimately help a businesses' bottom lines by maximizing check averages and driving sales, so it's a win-win for both parties involved." LOYALTY PROGRAMMING Today's beverage retailers are using loyalty programs as part of their customer engagement strategy. As Herian explains, retail- ers have several choices that offer different benefits. Outside of physical punch-cards, there are several apps and technologies that enable a more seamless loyalty program. According to Mark Harrington, vice president of marketing at Clutch, while loyalty programs are often focused on the trans- action, retailers with strong programs focus on using them as a channel to learn and understand their customers by gaining information on the individual's behaviors, preferences and ten- dencies. This data is used by savvy retailers to deliver highly rele- vant engagements that motivate the customer and move towards earning their loyalty for the store's brand. "Loyalty programs act as more than just a gimmick for more sales, they can be a great way to show appreciation to those who have helped keep your business strong," Lisotta says. "Treating these customers to a 'thank you' can be a great way to stay top of mind and keep a positive attitude toward your brand." Some of the most successful programs are focused on "surprise and delight" elements. "The customer doesn't know if or when they will get a reward, so there is no expectation, but research often shows that with this the surprise and delight elements are more valued and highly appreciated," Harrington says. "Beyond this, tiered programs where customers are rewarded for their longevity and frequency are often high-performing since the cus- tomers tend to feel more valued as they engage the brand more." Herian says one great option is building loyalty through a CRM program: retailers can capture customer emails through their POS and upload customer information, including purchase history, into email marketing programs like MailChimp. "This allows retailers to send bespoke offers and discounts that match a customer's purchase preferences," Herian says. For exam- ple, a customer who normally buys a Zinfandel from California could receive a discount for a Zinfandel at a higher price-point. This not only helps to increase customer engagement, but also maximizes check averages and increases customer lifetime value. Another successful loyalty program for retailers is using the email receipt function in cloud-based POS systems. Retailers can add their social media accounts like Twitter, Facebook and Ins- tagram to the bottom of the receipt, encouraging customers to engage with them online. "It's imperative that beverage retailers analyze and find value with their loyalty program," Herian says. "The biggest mistake retailers make is offering a loyalty program simply because other retailers are doing it; it can lead to building no real value, and a loss in profits. Make sure you research, test and evaluate the success of your loyalty program. If it's not actually increasing en- gagement and generating more revenue, it might end up hurting your business." Aron Ezra, chief executive officer at OfferCraft, says customer engagement is not only an important issue, it is the issue on the minds of many in the industry. "Thoughtful engagement with customers on a consistent basis can not only increase loyalty and long-term value among existing customers, but it can help attract new customers." — Ayesha Herian, communications manager, ShopKeep