Points in Colombia

What you don't know yet...

Some argue that loyalty programs began in the 18th century when merchants gave copper coins to their customers, so they could use them to buy from the same merchants later. With that purchase, the customer saved for their next acquisition at the same establishment; this is a customer retention strategy that is still in place today.

Over time, the copper coin evolved into stamps, coupons, points, and at the end of the 20th century, airlines launched their frequent flyer mile programs, and restaurants began implementing the famous stamp cards.

The green stamps from Sperry & Hutchinson (S&H Green Stamps), one of the first reward programs in the United States.

Crocker innovated with their program, where customers could redeem points for kitchen equipment.

These programs worked for the brands that included them in their strategy and service protocol. The same happened in Colombia, where customers kept the cards in their wallets, increasing their visit frequency, and the main goal was for the brand to achieve the highest level of visibility.

Many restaurants have tried to implement a points program to increase the frequency of their customers’ visits. However, why are these programs highly successful for some restaurants and a failure for others? It can be due to several reasons, including:

• Lack of a clear strategy
• The program is not offered to the customer and/or is not used
• Too much friction is created for the customer
• The rewards table is poorly structured
• Customer information is not collected
• There is no communication with the customer, or it is inadequate

On the other hand, with the increase in the gastronomic offer in Colombia, the system of cards with stamps stopped being attractive and became a headache for customers due to the overwhelming number of cards they had to carry in their wallets.

With technology, things have improved radically, but above all, if we understand that rewarding customers for their visits is no longer a competitive advantage. The brands that have successfully made a difference are those that now recognize that the true value of loyalty programs lies in understanding their customers and interacting with them effectively.

This knowledge of the customer is only possible with a robust Customer Relationship Management (CRM) system that allows you to understand the customer and identify their buying habits in order to impact them personally with relevant communications.

Through the tools provided by technology, you can learn what the customer thinks of you and take action to convert them into a frequent customer. Frequent customers will then become ambassadors for your brand, and what better advertising than from someone who loves you and recommends your business?

Thanks to a good loyalty program, restaurants today are able to manage the lifecycle of their customers, build their reputation, and increase sales through higher visit frequency and average spending — that is, the amount of money a customer generally spends at your business.

The key is to choose one that fits the needs of your business, considering that there are different types of loyalty programs, and adjust your processes to ensure it becomes an integral part of your business strategy. If you want to learn more about this topic, we can advise you — contact us.