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Lessons in Loyalty: Customer Connection Cycle

Carolyn Schnare Chief Content Officer, Liquid Barcodes

02/14/2024

The Liquid Barcodes Customer Connection Cycle Explains Six Key Components to Operating a Successful Loyalty Program

In our last two Lessons in Loyalty articles, we explored the  3 E’s (having easy, empowering, and engaging programs) and the 3 C’s (clear, compelling, and consistent promotions and communications). Now, we are going to talk about really solidifying the customer relationship with the components of the Customer Connection Cycle.

 

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Loyalty Beyond Sales

The Liquid Barcodes Customer Connection Cycle is our innovative framework that redefines customer relationships beyond transactions.

On a basic level, retailers need to focus on getting customers in the store, upselling once inside, and enticing them to come back. Our approach transforms this into a limitless cycle symbolized by the infinity symbol, creating a virtuous cycle.

In future articles, we will dig into each step of the Customer Connection Cycle. To begin, here is an overview.

 

Customer Connection Cycle

1. Recruit

The first objective is to recruit members. This step ensures you have both the permission and the power to communicate with customers even when they are not in your store. An effective recruitment strategy uses a range of tactics to connect with your customers whether they are online, offline, or anywhere in between.

2. Engage

Gaining maximum participation is your goal and it should center on ensuring members feel welcomed through an interesting and relevant program. By treating users as members and making them feel special, they’ll reward you with their wallet share. Celebrating birthdays and program anniversaries, providing frequent rewards and perks, offering fun games, and asking for feedback are key ways to put the customer in control.

3. Promote

You must craft an effective promotional plan to boost awareness and encourage purchases and repeat business for key products. Your promotional calendar should be straightforward yet dynamic, incorporating both transactional and emotional elements to resonate with customers practically and emotionally. 

4. In-Store Visits

Getting customers into the store is the goal of your program but you must recognize them once they get there. Simplify redemption, acknowledge top customers, and make them feel special. Ensure the app is useful at the store by linking payments with the loyalty program for seamless earning and redemption. Encourage store employees to recognize program members and incentivize them to use the app themselves so they’re well-versed in the perks.

5. Reward

The pivotal “moment of truth” occurs with instant rewards, fostering trust and long-term loyalty. This cycle, when executed effectively, ensures customers return consistently. There are three common reward collection methods: digital stamps (buy 3, get 4th free), points (collect 1,000 points and get a free item), and subscriptions (a paid program offering unlimited products.)

6. Analyze

A loyalty program is a long-term company investment and it is critical to constantly assess how it’s performing. Regularly measure and analyze key program data on a daily, weekly, monthly, quarterly, and annual basis. Focus on recruiting a substantial and representative member base, closely monitoring growth and engagement levels. Utilize tools like Net Promoter Score, set targets for member transactions, compare spending patterns between members and non-members, and continuously collect and analyze customer data. Ensuring data is used to optimize campaigns and enhance customer understanding. 

7. Operate

Once you’ve hooked a loyal customer, focus on operating the customer program in a lean and efficient way. Welcome members with a well-designed communication cycle, maintain engagement and incorporate a “thank-you” campaign to show appreciation. Utilize automation tools to target and energize members with relevant offers. Additionally, identify and reward top customers, build business partnerships, support local campaigns, and implement fraud controls to monitor and prevent loyalty fraud.

 

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The Customer Connection Cycle Explained

This informative video explains more about the Customer Connection Cycle in this edition of the Liquid Barcodes Convenience Retail Loyalty Playbook video series.

 

 

Achieve Loyalty Excellence

Large or small, retailers have found that having a functional, sleek, easy-to-use loyalty app is the optimal way to stand above the competition.

Developing a distinctive loyalty program is essential in the dynamic landscape of convenience retail, where challenges abound. The Liquid Barcodes Convenience Retail Loyalty Playbook serves as your hands-on tool to make this happen.

We developed the Liquid Barcodes Customer Connection Cycle framework to illustrate how to strategically engage customers through various channels, converting them into loyal program participants. The framework uses proven loyalty mechanisms to ensure customers return sooner, becoming habitual purchasers. 

Recognizing the significance of a strong customer base in driving revenue, the key principle of the Liquid Barcodes Customer Connection Cycle is simplicity, ensuring your program is easy to understand, join, earn, and redeem. It’s not just a proprietary approach; it’s our shared strategy to elevate your loyalty program and drive your business to success.

Click here to download the first few chapters within the Liquid Barcodes Convenience Loyalty Playbook.

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About Liquid Barcodes

Liquid Barcodes is a leading global loyalty and digital marketing technology partner specializing in the convenience and foodservice industries. The proprietary, cloud-based technology platform allows retailers to create and manage their digital marketing campaigns with the “customer connection cycle” process to engage, promote and reward customers’ activities in real-time across digital and media channels.

Liquid Barcodes loyalty platform is powering loyalty programs for industry partners across several global markets, by offering unique subscription and mobile payment programsmachine learningpersonalizationgamificationloyalty, and other capabilities.

Learn more about Liquid Barcodes at LiquidBarcodes.com.

About the Author

Carolyn Schnare, Chief Content Officer, Liquid Barcodes

Carolyn Schnare has been involved with the convenience retailing industry for two decades with extensive knowledge of customer engagement and marketing, sustainability, and community outreach. Before Liquid Barcodes, Schnare worked at NACS (National Association of Convenience Stores) in a variety of roles from event production to membership and most recently as Director of Strategic Initiatives and host and producer of the popular industry podcast, Convenience Matters. Schnare currently anchors the popular Shop Talk LIVE! video series produced by Global Convenience Store Focus media group.


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Lessons in Loyalty: Powerful Promotion

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Lessons in Loyalty: Engage Members

An important component to having a successful loyalty program is to develop a powerful plan to engage with your members.

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Lessons in Loyalty: Recruit Loyalty Program Members

The first step in a successful loyalty program is to recruit a robust, loyal membership base with an effective recruitment strategy. In the ongoing exploration of loyalty programs, this article focuses on the pivotal first step in the Customer Connection Cycle: recruiting members. Establishing a robust and loyal membership base is paramount, and this article outlines […]

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Lessons in Loyalty: Customer Connection Cycle

The Liquid Barcodes Customer Connection Cycle Explains Six Key Components to Operating a Successful Loyalty Program In our last two Lessons in Loyalty articles, we explored the  3 E’s (having easy, empowering, and engaging programs) and the 3 C’s (clear, compelling, and consistent promotions and communications). Now, we are going to talk about really solidifying […]

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Lessons in Loyalty: Easy, Empowering, and Engaging 

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Subscription programs ensure recurring revenue by recruiting customers and enhancing the overall foodservice offer Subscription is a big buzzword referring to any recurring or prepaid program that is delivered or available on a regular basis. 

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Circle K Norway wins the prestigious NACS award for technology innovations, including car wash subscription program powered by Liquid Barcodes. NACS awarded Circle K Norway’s leaders with the NACS Convenience Retail Technology Award at this week’s NACS Convenience Summit Europe in Dublin.

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Liquid Barcodes

Put a rocket under your loyalty program

With our loyalty platform, we help design and operate world-class, tailor-made subscription and reward programs that make sure your customers always come back.

Book a Demo →

We are trusted by global brands.

Convenience retailers all over the world have engaged and rewarded consumers with our tailor-made loyalty programs.

To our case studies →

Liquid Barcodes
Liquid Barcodes
Liquid Barcodes
Liquid Barcodes

Convenience retailers all over the world have engaged and rewarded consumers with our tailor-made loyalty programs.

To our case studies →

Liquid Barcodes
Liquid Barcodes
Liquid Barcodes
Liquid Barcodes

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