1-888-353-5012Have you ever checked in for a flight and been upgraded to a seat with extra legroom? Or checked in to a hotel and been moved to a room with a view? Been invited to sit in a box suite at a hockey or football game? Or whisked to the front of the line at a club or bar? Take a moment and think back to how it made you feel.
At the October Platinum Elite Meeting, we heard some clients who are EXPERTS at giving their customers the red-carpet treatment and it reminded our VP, Kathleen, of a memory from many years ago after a long day of travel. When she finally arrived at her hotel, the front desk staff member stopped everything she was doing, smiled and said, “Welcome Ms. Dobin. We’ve been waiting for you.” Then she gestured over to her left to a simple sign that read: Guest of the Day – Ms. Dobin.
The funny part is that sign was ALL it was. That was Kathleen’s red carpet. A simple plaque with her name and a prestigious title. But it was something. It made Kathleen feel special and was such a respite after a long day of travel, and she’s still talking about the experience to this day!
With Royalty Rewards® on your side, you are already doing a great job of acknowledging and rewarding your best customers. But what if there was MORE you could do? What if you could parse out and segment your customers even further to create exclusive VIP Programs?
Yes, your Rewards Program IS a VIP program, but we’re talking a level up. This is about providing ADDITIONAL VIP levels, exclusive benefits, perks, and offers, with the goal of creating additional spending and value from targeted customers.
And you don’t need lights, cameras, limos or glamorous outfits to show these customers how important they are to you. This can be AS SIMPLE as offering soft benefits to your best customers.
On average, Rewards Members visit 2 times as often and spend 3 times as much as non-Rewards customers.
In the spirit of Revitalizing, Reinventing, and Renewing your business in 2023, AND in leveraging MORE value from your existing Rewards Members, why not take it up a level? This article covers the foundation to create additional VIP programs in your business. But don’t get overwhelmed, YOUR program can be as simple or as elaborate as you’d like.
Leverage even MORE additional spending by creating additional VIP levels WITHIN your program.
How Do VIP Programs Work?
VIP Programs generally fall into one of two categories:
A FREE Program made up of assigned customers based on spending or visits. In this case, customers EARN the right to memberships based on their value to you. For example, your Top 250 Rewards Members based on annual/lifetime spending or annual/lifetime visits.
A PAID Program made up of subscribed customers. In this case, customers purchase/subscribe to a package of benefits in advance, either monthly or annually. It rewards your best customers with perks they value and rewards you with an influx of guaranteed cash at the beginning of each renewal period. The math will be in your favor in other ways too. A recent report by McKinsey shows that consumers are 62% more likely to spend more after joining a paid loyalty program. Many Platinum Elite Members have had great success with paid VIP programs.
In either case, you may create one or multiple VIP Levels. Yes, one level is easier to manage, but multiple levels (like Platinum, Gold and Silver) create a great way to reach more customers and give them something to continually strive for.
Which Members Should I Target?
This is where you take a deep dive into your best customers. Who are they? How much are they spending? How many times a month do they visit? What are they buying? What insight does your team have about them? Don’t just go through the motions. Rather, USE this information to bundle an attractive package of benefits that will appeal to these customers and fit their spending habits. Need help finding out who these people are? Call your Coach.
As part of this step, determine how big your VIP Program will be. A great VIP program (either free or paid) doesn’t extend to all customers or isn’t open for just anyone to join. Exclusivity drives a sense of urgency and feeds into people’s need to feel special.
What Benefits Should I Include?
What you package in your VIP Program is up to you, but aim for benefits with a high perceived value and GET CREATIVE. We’ve included some ideas here to help your brainstorming process. We highly recommend consulting with other members of your team for additional insight into what could make your customers feel special.
- 1.5 points per dollar spent
- Double Points every (fill in the blank)
- 1 FREE (fill in the blank) per month or quarter
- Front of the line privileges / VIP seating
- First come, first serve access to exclusive parking spots
- Priority tickets to special events
- Priority access to new products and services
- Additional Services: Pickup/drop off, car detailing, or additional add on services following a car servicing appointment, free personal shopping sessions, etc.
If you’ve decided on a paid program, one format is to bundle benefits into a one-time membership payment that can then be used throughout the year. When the potential member does the mental math, the benefits need to clearly outweigh the fee, which will encourage sign-ups. Ideally, they see it as an easy decision. They would have spent the money with you anyhow so they may as well get the added benefits.
Here’s a look at an Annual VIP Membership offered by an existing Platinum Elite Restaurant Owner.
Total Value: $1800.00
Membership Cost: $1099.00
Memberships Sold: 29
For the Member, that’s over $700 in savings.
For the Business, it’s a $20,000+ cash advance with
guaranteed future monthly sales!
What's Next?
It’s time to market it. These are your future VIP’s – so you want to wow them from the get-go. A great way to set the stage is by sending a personalized letter inviting them to join or advising them of their new status. And we all know that one of the best parts of being a VIP is showing it off! Set your VIP Members apart with an exclusive VIP Card, like the one shown here, and ensure they get TOP KNOTCH service (by name!) from all your staff.
