Succeed As Your Own Boss

ENDING SMALL BUSINESS FAILURE

  • Home
  • About
  • Book Melinda
  • Consulting
  • SBL Store
  • SmallBizLady University
  • Subscribe to Podcast
  • #Smallbizchat
    • Be a #SmallBizChat Guest
  • Blog
  • Contact
    • We’re Hiring!
You are here: Home / Women in Business / How to Use Loyalty to Quadruple Your Business

How to Use Loyalty to Quadruple Your Business

August 27, 2015 By Melinda Emerson Leave a Comment

Feel free to share...Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin
Pin on Pinterest
Pinterest
Share on Reddit
Reddit
Email this to someone
email
Print this page
Print

MistyYoung2Every week as SmallBizLady, I conduct interviews with experts on my Twitter talk show #SmallBizChat. The show takes place every Wednesday on Twitter from 8-9 pm ET. This is excerpted from my recent interview with Misty Young, the @Restaurant_Lady. Misty Young is the owner of Squeeze In, a privately owned Lake Tahoe, California-based restaurant chain known for its breakfasts and lunches.  Misty’s business acumen has taken Squeeze In from one location to multiple locations, seeing a sales growth of $548,000 to $4.2 million per year. Misty is also the author of the Advantage Best Seller, From Rags to Restaurants.

SmallBizLady: Why did you decide to build a loyalty program for your business?

Misty Young: We really wanted to grow fast. We knew by collecting information about our guests that we could build a relationship with them. Initially, we did it the old-school way by collecting data and entering it into our own “birthday club.” It grew quickly. I would personally print send-out birthday cards by the dozens. It was so popular it got out of hand fast! So, I said, “If it’s not on a list, it doesn’t exist,” and that included our relationship with our guests

SmallBizLady: So, you started with a hand-built system? Is that what you recommend?

Misty Young: It was what we had to do to understand the value of it. We moved to a professional system after several months. If you have to start that way, do it. Do whatever it takes to get a system in place and use it EVERY DAY! Your associates won’t integrate the loyalty system if YOU don’t believe in it, so get started ASAP.

I don’t recommend going it alone. There are many providers who can help you build professionally and fast.

SmallBizLady: How did you know the loyalty program was being successful?

Misty Young: We started our loyalty program in 2006. We had been thinking of opening a second location about 60 miles away. The hand-built loyalty database we made blew us away because we found out that 65 percent of our guests were coming from a market closer than we originally thought. We were shocked because we never imagined the vast majority of our guests were coming from so near. We opened a second location in the closer market on Feb 1, 2008 – the same day we kicked off our new professional loyalty system.

SmallBizLady: What direct results have you seen from the loyalty program? How do you know it works?

Misty Young:  We did ZERO traditional advertising to open our second location. We ONLY reached out to our members. The place was packed from Day One and we’ve since opened three additional locations the same way. We had 750 members from the hand-built list whereas now we’ve got 107,179 members in 44,658 households.

We ONLY market to people we know, like and trust that happen to be the same people that know, like and trust us: our loyal guests.

SmallBizLady: You have a big loyalty database, but does it convert into actual money in the bank? How can you tell?

Misty Young: We professionalized our system years ago so everything is 100 percent trackable. As of yesterday, we’ve tracked $7,854,309.87 in sales directly attributed to database guest spending. We know how often they visit, what days they visit, exactly how much they spend and more. We strategically segment our database by spending and frequency so our offers will differ based on the data.

SmallBizLady: Well, you’re a restaurant company. Do you think a loyalty program will work for other kinds of businesses?

Misty Young: I don’t care if you’re a hospital – loyalty programs work. Why? Because people want to be treated in a special way. My orthodontist has a loyalty program. Businesses must connect with their customers. Loyalty programs do that for you.

How can you have relationships with people if you’re not collecting information?

What’s one of the very first things people do to get to know one another? They exchange names. It’s all about getting to know people and then serving them. Just like in social media, it can’t be all about selling.

SmallBizLady: How do you avoid coupon clippers?

Misty Young: First of all, we only give offers to people in our database and each offer has clearly defined terms and conditions. Our goal is for guests to automatically think “Squeeze In” when they think breakfast or lunch. We give motivating, high-value offers, but remember: we don’t print those in newspapers. To get Squeeze In offers, promotions, invitations, specials and more, you’ve got to opt-in to our loyalty program.

SmallBizLady: Logistically speaking, is it going to take all my time to run the loyalty program?

Misty Young: The real question should be, “Do you want to make money?” If you do, get a loyalty program. The single highest value activity you, as the owner of your business, can do is marketing. With loyalty, the most important thing you can do is believe in your program so your associates believe in it too. Assign an appropriate person on your team to manage, report, promote and grow your program.

SmallBizLady: How is loyalty marketing different from other direct mail or marketing strategies?

Misty Young: Loyalty becomes a one-on-one, relationship-building opportunity with the people who pay you. Current customers spend 67 percent more than new customers. Build up loyalty! It costs up to 10 times more money to acquire a new customer than it does to sell to an existing one! You end up becoming a welcome guest in your customer’s inbox – not an annoying pest – when people voluntarily OPT IN to receive your marketing.

 SmallBizLady: What do you actually do with your loyalty program? How does it work on a day-to-day basis?

Misty Young: We track sales and visit frequency and then assign point values for purchases to award/reward guests. We build our database constantly and daily. Without one, we’re just a restaurant, but with one, we’re a marketing machine.

We recognize guest birthdays, anniversaries, six-month membership anniversaries and purchases.

SmallBizLady: What are some other ways you’ve leveraged your database?

Misty Young:  Most notably, we’ve used it to raise money. Through special sales to our best members, we’ve raised over $150k towards new restaurants. We also host quarterly special VIP parties where everything is free. The food, wine, beer, gifts, swag and raffles – all free! We also send totally personal, hand written “thank you” cards and appreciation letters to our loyal customers. When opening a new location, we feed our database through geo-mapping software to build where we already have a guest base.

SmallBizLady: What do I do next if I want to have a loyalty program?

Misty Young: START IMMEDIATELY. Quit wasting time. Start collecting information from those that pay you. You don’t have to know every detail to get started, just take a step right away by making a data collection form. Visit www.mistyyoung.com to get a FREE $5,000 marketing jumpstart loyalty program – the same one we use at Squeeze In locations. Make the program about your guest / client / patient / patron. Love your loyalty program and believe in your program. Perception is reality. If you think it’s terrible, it’s terrible. Belief comes from YOU!

If you found this interview helpful, join us on Wednesdays 8-9 pm ET; follow @SmallBizChat on Twitter. Here’s how to participate in #SmallBizChat: http://bit.ly/S797e. For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.

Feel free to share...Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin
Pin on Pinterest
Pinterest
Share on Reddit
Reddit
Email this to someone
email
Print this page
Print

Filed Under: Women in Business, Your Small Business Tagged With: loyalty, Misty Young

Fix Your Business Now!

Order SmallBizLady's new book Fix Your Business, 90-Day plan to Get Back Your Life and Reduce Chaos in Your Business. It includes the 12 Ps of Running a Successful Business and readers will finish the book with a new strategic plan to take their business to the next level.

About Melinda Emerson

Melinda F. Emerson, “SmallBizLady” is America’s #1 Small Business Expert. She is an internationally renowned keynote speaker on small business development, social selling, and online marketing strategy. As CEO of Quintessence Group, her Philadelphia-based marketing consulting firm serves Fortune 500 brands that target the small business market. Clients include Amazon, Adobe, Verizon, VISA, Google, FedEx, Chase, American Express, The Hartford, and Pitney Bowes. She also has an online school, www.smallbizladyuniversity.com, that teaches people online marketing and how to start and grow a successful small business and publishes a blog SucceedAsYourOwnBoss.com. Her advice is widely read, reaching more than 3 million entrepreneurs each week online. She hosts The Smallbizchat Podcast and is the bestselling author of Become Your Own Boss in 12 Months, Revised and Expanded, and Fix Your Business, a 90 Day Plan to Get Back Your Life and Reduce Chaos in Your Business.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Let’s Connect

  • facebook
  • instagram
  • tiktok
  • pinterest
  • linkedin
  • twitter
  • youtube
  • feedburner

We’re proud to be part of the Mediaplanet Empowering Small Business campaign! The COVID-19 pandemic brought hardship and ruin on the nation’s small businesses, but there’s now reason for hope. Learn about the resources, support, and tools available to help your small business bounce back and grow stronger than ever by picking up a copy of the campaign in USA Today and reading it online here.

Get a FREE Chapter of SmallBizLady’s Book,
"Become Your Own Boss in 12 Months, Revised and Expanded"!

Become Your Own Boss

Sign up for the SmallBizLady Buzz Newsletter by Clicking
the Button Below:

Most Popular Posts

>Seven Ways to be More Profitable in Your Small Business
> 7 Ways to Attract Customers to Your Small Business
> 6 Tips for Managing Small Business Finances
> How to Run a Successful Multilevel Marketing Business
> 10 Ways to Grow Your Small Business With Instagram
> How to Sell on Facebook
> How to Get Over the Fear of Starting a New Business

Featured Videos

Bloomberg News Interview
How to Support Small Businesses During the Holidays

“12 Principles of Highly Profitable Businesses with Melinda Emerson” from Sonia Dumas
October 2020

MSNBC Interview
Top Tip: Never Let a Customer Down

National Speakers Association
Winter Conference 2016

Fox 29 Philadelphia
'Small Biz Lady' gives best advice for starting a new business in the New Year

Fox Business
Starting a Business

MSNBC
The importance of job mentoring for women

#SmallBizChat Live
National Small Business Week: Q&A

Good Day Philadelphia
Expert Shares Tips on How to Become Your Own Boss

Google
Best Practice for Social Media

Testimonials

Become Your Own Boss is a must read if you’re thinking of launching a business of your own.
Jean Chatzky, Bestselling Author of Money 911 and Financial Editor of NBC’s Today Show
Great step-by-step advice for anyone looking to start their own business.
Andrew C. Taylor, Chairman, Enterprise Rent-A-Car
Melinda Emerson has written a remarkable book. It is essential reading for anyone seeking to make the transition from working girl to successfully working it, as an entrepreneur.
Cynthia McClain-Hill, Past President, National Association of Women Business Owners
The perfect companion for those planning to go out on their own. Melinda delivers firsthand practical advice on how to be the successful entrepreneur. Read it if you want to get it right the first time.
Kenneth L. Shropshire, Professor at the Wharton School of Business, University of Pennsylvania
If you are looking for a versatile speaker who can talk about how to grow small businesses or get started with social media, look no further.
Heather Van Sickle Executive Director, National Association for Community College Entrepreneurship (NACCE)
Her wit and depth of subject knowledge were entertaining and empowering. Melinda is definitely on our short list of seasoned entrepreneurs and business leaders we look to invite back in the near future.
Tennille M. Robinson Senior content & Event producer for Inc. magazine
Melinda Emerson, “SmallBizLady,” is an engaging and witty speaker and a great addition to any conference. Her terrific presentation and compelling delivery give people the information they need and want to become their own bosses and grow success… Read more
Laurie Dalton White Conference Director, Pennsylvania Conference for Women
Melinda Emerson has been a fantastic small business and social media resource for the Pitney Bowes team. Not only is she personable and easy to work with, but she also has an innate understanding of the small business audience. My marketing programs … Read more
Justin Amendola, Former VP, Global SMB Digital Strategy, Pitney Bowes

Latest #SmallBizChat

Bringing in Industry Experts to Go Further Faster with Jy Maze Featured Image

The SmallBizChat Podcast: Bringing in Industry Experts to Go Further Faster with Jy Maze

  Jy Maze is a speaker, author, and community advocate. She’s the CEO of Maze Freight Solutions, a third-party logistics service based in Overland Park, Kansas. Maze Freight Solutions provides logistical services, including one or more elements of commercial procurement, supply chain management, and fulfillment activities for all sizes and categories of enterprises. Jy wanted […]

Fix Your Business Q&A Video

Recent Posts

  • The SmallBizChat Podcast: Bringing in Industry Experts to Go Further Faster with Jy Maze
  • 20 Email Marketing Tips for Small Business Owners
  • The SmallBizChat Podcast: Building and Running a Strong Family Business with Christine Noh
  • March 2023 #SmallBizChat: What Your Customer Wants and Can’t Tell You
  • How to Create an Email List to Grow Your Small Business

Categories

  • 10 Things Lists
  • 12 Things
  • 15 Things Series
  • 31 Ways to Boost Your Small Business
  • Ask Smallbizlady
  • Become Your Own Boss Tips
  • Branding & Marketing
  • Business Inspiration
  • BYOB2011
  • Cash Flow & Finance
  • Customer Service
  • Featured Post
  • Featured SmallBizChat
  • Fix Your Business
  • Grow Your Business
  • Guest Articles
  • How to Start
  • Leadership
  • Melinda Emerson @SmallBizLady
  • Mompreneurs
  • My Recommendations
  • Pink Slip Entrepreneurs
  • Q & A Interview
  • SmallBizChat
  • SmallBizChat Live+
  • SmallBizLady Recommends
  • SmallBizRadio
  • Social Media
  • Solopreneurs
  • Special Reports
  • Starting A Small Business
  • Teams
  • Technology
  • Telesummit
  • The SmallBizChat Podcast
  • Uncategorized
  • Women in Business
  • Your Small Business

#SmallBizChat

  • SmallBizChat Archive
  • @SmallBizLady

Business Advice

  • How to Start

SmallBizLady Store

Products

Free Chapter

Get In Touch

  • Write For Us
  • FAQ
  • Be a #SmallBizChat Guest
  • Contact Us
Copyright © 2023
Quintessence Entertainment, Inc
PO Box 280
Drexel Hill, PA 19026
(610) 352-0680
Privacy Policy · Refund Policy

Let’s Connect

  • facebook
  • instagram
  • tiktok
  • pinterest
  • linkedin
  • twitter
  • youtube
  • feedburner