Phase out or reduce perk on loyalty punch card....dilemma

[eda]

Hello All:

I have a punch card program that has been in place for the 6 years we have been open. It gives the customer $1.00 off on the 4th wash, $2.00 off on the 8th wash, $3.00 off on the 12th wash. so over 12 washes the customer gets $6.00 off,or.50 cents per wash.
In the last 2 years I have introduced a monthly of $14.95, and book of 5 washes that gives 25% off. They have both been relatively popular.
My punch card has a good following too, its just with the other 2 programs it becomes a bit more time consuming for bookkeeping, checking over reports. Naturally, the punch card program has a bit more vulnerability to it.

I am considering:
1) Abandoning the punch card program. If I do any idea on how to appease this customer type? I already have free vacuums. Offer a handout, etc...?
2) Reducing the monetary discount/incentive. Achieve this by reducing savings on washes, or change the card format.
3) On one or two of the present monetary discount incentives, substitute with a handout, or wash feature.

I have looked into a web based loyalty program, but with being an exterior and with our operation I believe it would hinder us.

Any feedback would be appreciated.

Thanks,
Eda

 

[dewey9876]

I would phase the punch card out. When they are used up do not hand out new ones. Your wash books and unlimited passes should be enough. We wanted to focus on our unlimited passes so we priced everything to make it the best deal. We still have Pre paid wash cards buy 6 get one free and buy 10 get 3 free but we focus on our unlimited. The punch cards are also a easy method for employee stealing. We have everything barcoded or RFID, easier control and much less risk of theft. Keep it simple, too many choices can be over whelming.
Just my 2 cents.

 

[eda]

Dewey,
Thanks for the response. I agree with your train of thought. I just wonder about the following I have, not getting alienated. How did you and the crew handle the complaints when you phased it out other then suggesting the other programs?
Should I consider giving them something when they go to pay with one for 10 days or 30 days? Or is it best not to promote such?
Thanks,
Eda

 

[JMMUSTANG]

We had punch cards that were 10 washes get 1 free. Very popular. Problem was control with employee theft.
So we fazed it out and told our customers that we were having to much fraudulent use by customers trying to stamp them with different stamps.
We told them that we had a new program that was better for the customers and us. Buy a booklet of 6 washes for the price of 5.
It works great and is easier to control.
Our employees have to mark down the packet number, license number and sign for it on a control sheet. Takes seconds to do.

 

[rph9168]

Any time you offer discounts or frequent wash programs you open the door to employee theft or fraudulent usage by customers. It is hard to pick up on what is going on until it is already been done. From my experience it seems that the ones like buy some and get one free is the most reliable. Coupon discounts are usually easy for employees to scam and unless you have good safeguards unlimited wash programs can be abused my customers.

 

[Earl Weiss]

HAd issues with Coupon Book Sales. Got some counerfeits and some enterprising employees realized that if a book allowed a discount of retail they could buy the book and substitute the tickets for retail sales and pocket the spread.

I now use a high security ticket with sequential numbering. Not a perfect solution but better.

 

[UponTheSquare]

We completely phased out discount purchasing and have seen no ill effects thus far. We had been using a "ticket system", where buying a booklet of numbered tickets gets you a discount over the individual wash prices. As Earl mentioned, there is certainly room for employee theft and customer counterfeiting in such a system, but then, I've never seen a perfect system. Wherever there is cash involved, there is someone trying to steal it. The only thing you can do is catch it before it gets out of control.

I had been contemplating unlimited packages after doing away with the books, but have come to the conclusion that it would likely not be beneficial, as after 20+ years in business we already have a committed clientele who come here, and only here, and giving them unlimited washes would drive up labor costs (we're old school and still do manual prepping), without much benefit. I am, however, looking into other promotions or systems.

What seems to be best at the moment is cards which can have value added to them, with a discount for X amount of purchases at once. Call me old fashioned, but I'm still a fan of people paying me full price for the service I am providing them. Times are changing though, the world is changing, and everyone expects something for nothing. Best of luck, let us know what works for you!

 

[madstack]

Phase out. Punch cards (and coupon books for that matter) don't make them come in more often or spend more per visit. They're coming in anyway so why reward them? Loyalty? An email address?

 

[Earl Weiss]

Phase out. Punch cards (and coupon books for that matter) don't make them come in more often or spend more per visit. They're coming in anyway so why reward them? Loyalty? An email address?

There are lots of types of "coupon Books" FWIW we sell groups of wash coupons at a discount for several reasons.

Good Charity PROMO

There is always failure of redemtion value.

People may tend to use things more frequently when they are not reraching in their pocket for actual $.

People can give them away for any number of reasons.

For fleets getting paid up front beats having to Bill and wait to get paid.

 

[hkim310]

We currently have an unlimited wash club and we use loyalty punch cards. We do not allow customers who are part of the wash club to receive punches for the loyal card. We have never tried to sell wash books as the punch cards were here when we originally took over this wash. The unlimited wash club is something we added when we came. A lot of our customers SEEM to really enjoy the punch card program so I do not see us removing it even though we have an unlimited club plan.

 

[madstack]

I'd like to see a program where rewards were based on dollars spent rather than visits. That way, all customers would benefit. Unlimiteds would get the occasional upgrade and others would get free washes.