Following Question ID: 328687

Previously described our  *friendly pharmacy* will feature the best in
customer service, the latest in technological innovation and much
more. Part of this *much more* package will be our own loyalty
program- let's refer to it as the *friendly pharmacy family* plan.
This plan is designed to reward regulars, people who have contributed
to the development of the pharmacy plus members of certain groups such
as 1) residents of client nursing homes 2) employees of the
institutions (nursing homes etc.) that the pharmacy serves 3)
immediate families (children & grandchildren) of the residents of
client nursing homes 4) each and every construction worker,
professional and other participant that worked on the *friendly
pharmacy*'s  development. ... We may offer to include certain
Researchers too!

As this is a public forum I shall not list our current benefits in the
*friendly pharmacy family* plan prior to retail opening scheduled for
June 1.

My question is based on the *lindstrom-ga compensation formulae* and I
solicit the following:

What ***innovative ideas*** should be included in the new *friendly
pharmacy family* loyalty plan to build & retain a permanent client
base while also building the *friendly pharmacy brand*?

Compensation shall be between $5 - $15 per accepted comment and is
*Open to All Researchers*.

Thank you for your interest.

Hi again!

Some marketers say that the success of a loyalty program usually falls
on the ability to identify the most valuable customers and then
pampering them. Before we start with suggestions, let us identify the
pitfalls.

"Frederick F. Reichheld, a vice president at consultants Bain & Co. in
Boston and author of The Loyalty Effect, a 1996 analysis of loyalty
programs, says most company loyalty programs don't slice data finely
enough to distinguish between customers who would recommend a
particular business to friends and those who would not."

"Many companies also tend not to do enough with their loyalty program
data to make Joe Sixpack feel special, too, says Woolf of the Retail
Strategy Center. According to Carlson Marketing Group, a
Minneapolis-based customer research firm, rewards programs cost
companies, on average, between 2 percent and 10 percent of a
customer's total spending at a given store."

"The clear message, says Marr: 'It's not enough to have CRM. You need
the hearts and minds of the customers to close the loyalty gap.'"

"CRM Strategies: Loyalty Programs That Are Working" (Page 2)
http://www.eweek.com/article2/0,1759,1424403,00.asp

---------------
Suggestions:

1. "Fire the Worst Customers, Reward the Loyal"

"Back in 1995, Norman Mayne, the CEO of Dorothy Lane Market, knew he
was creating a major stir when he was one of the first executives to
start talking about "firing" customers. But he did just that, and then
launched Club DLM. Still the most radical, data-driven loyalty program
in the supermarket industry, Club DLM is aimed squarely at attracting,
keeping and pampering only the most profitable and most regular
customers at the expense of everyone else."

"The perks vary. Sometimes they're highly personalized, as when the
chain offered its top 800 bread-buying customers three free loaves of
French bread from its bakery. Sometimes, the perks are event-driven.
During a local price war on milk, Maynes recalls, grocers were paying
$1.70 a gallon for milk and selling it for 99 cents. Mayne knew the
one way to go broke was to lose 71 cents on an item that people buy
200 times a year. So for good customers, DLM printed coupons that let
them buy up to five gallons of milk for 49 cents a gallon."

"CRM Strategy: Fire the Worst Customers, Reward the Loyal"
http://www.eweek.com/article2/0,1759,1423605,00.asp


2. "Ebay's 'Anything Points'"

"How does the program work? Consumers can use the loyalty points they
earn from one business and swap them for points at eBay. eBay's aim:
to woo new customers to its site."

"Want to trade in those frequent-flier miles that will never amount to
anything for something you really want or need more?like an antique
rocking chair or a great deal on a mountain bike? People who have
unwanted miles or hotel points can swap them for eBay points."

"CRM Strategy: Ebay's 'Anything Points'"
http://www.eweek.com/article2/0,1759,1423589,00.asp


3. Make the Customer Profitable - Used in Harrah's Casinos

"Gamblers don't just win money when they play at one of Harrah's 26
casinos. When they swipe their loyalty cards, they're also eligible to
win a variety of perks, from appetizers to Swedish massages..."

"Here's how it works: Each Total Rewards program enrollee has a card
and a rewards account. Each time a customer plays a game or slot
machine, he or she inserts the card. A readout then shows how many
regular and bonus points he or she has accrued. After a certain number
of regular point totals are reached, the cardholder qualifies for a
Gold, Platinum or Diamond membership, which offers privileges such as
club memberships and speedy check-ins. Meanwhile, bonus points can be
turned in for free food and various other perks at the casinos. Away
from the floor, cardholders can check their balances and find out
about their latest perks from e-mails and Harrah's Web site. The
company also gives customers the ability to download a win/loss
statement for tax purposes."

"CRM Strategy: Make Every Customer More Profitable"
http://www.eweek.com/article2/0,1759,1423600,00.asp

I hope these were helpful.

Easterangel-ga

Hi Brudenell,

Giant Food BonusCard benefits customers and schools.
"Giant is using BonusCard to enhance its community service program,
"Apples for the Students Plus," a school support program in which
Giant and Giant customers make contributions to local schools.
Under the new A Plus program, which will start Nov. 5, and run through
March 31, consumers automatically will earn credits for their selected
schools whenever they use their BonusCard, eliminating the need for
schools and customers to collect, collate and mail in receipt tapes.
At the end of the program, Giant will make cash grants to the
participating schools, which are free to use the grants as they wish.
By using their BonusCards, Giant's customers also will receive special
offers from other community-based businesses, including bonus interest
rates on certificates of deposit from a local bank, admission
discounts to local tourist attractions and museums, discounts from
local hotels and other benefits."
http://www.findarticles.com/cf_dls/m3374/14_22/65953296/p1/article.jhtml

hummer

Hi Brudenell!


Here is some interesting information regarding loyalty programs.


Kiosk-based loyalty program

This is a Kiosk-based loyalty program for restaurants that will expand
to include pharmacies as well.

?With IFY?s technology, diners will swipe radio-frequency
identification tags made by Texas Instruments to check themselves in
at wall-mounted kiosks placed in restaurant lobby areas. They will
simply enter the number of guests in their party on a touchscreen, and
be rewarded with personalized service and special offers.?

(..)

?Hyman said his company will expand the kiosk loyalty program to other
retail sectors including theaters, golf shops, car servicing and
sales, dry cleaners, pharmacies and specialty shops.?

Kiosk Marketplace
http://www.kioskmarketplace.com/news_story.htm?i=15597


============================================


New loyalty programs boost sales at Drugstore.com

This article describes the new three part loyalty program that
Drugstore.com started last year. This resulted in increased sales.


?After testing various loyalty-geared offers online, Drugstore settled
on three elements. They include ?Drugstore Dollars,? a rebate credit
on future purchases; ?Diamond Deals,? promotional offers that are
personalized according to customer behavior; and free shipping on
offers of $49 or more. Drugstore launched the three-part program with
slightly different objectives for each element, Drugstore?s manager of
customer retention Ramer Holtan tells Internet Retailer.?

You may read the full text here:
http://www.internetretailer.com/dailyNews.asp?id=9346


============================================


LOYALTY "SHOPPING GUIDE" by Adams Business Media, Inc

This is a comprehensive listing of the majority of the loyalty program providers. 

Each listing provides:

- Program options
- Additional services
- Costs
- Man-hours per week at store level
- Benefits for customers
- Benefits for retailers
- Difference between this loyalty program and competitors'
- Full contact information of provider
http://www.petroretail.net/npn/2002/0211/0211loy.asp


============================================


What drives consumer participation to loyalty programs?
By K. De Wulf
27 pages

The study holds major implications for the design of successful
customer loyalty programs.

Vlerick Working Papers 
http://www.vlerick.be/research/workingpapers/2002-2.pdf



I hope this is helpful!

Best wishes,
Bobbie7

Greetings again, Brudenell:

Back to those "Saturday Seminars" -- If the store space allows, there
are multiple topics to address here that can bring in all types of
purchasing groups.  If adequate space is not available, a newsletter
with the same information (whether electronic or paper) would be of
great assistance.  You could mail this or include one in each
prescription bag.  Offer monthly themes and address areas within that
topic -- a few that come to my mind are (I've purposely not read other
comments so I may be duplicating):

Warning Signs: Is your child abusing drugs or alcohol? What to do, etc.
Heart Smart series: Eating right, exercising, etc. 
High blood pressure
Diabetic help: wound care, diet, exercise, etc.
Mixing medications: make sure your pharmacist knows if you're taking
other medications, ask your pharmacist questions about mixing natural
medications with prescriptions, etc.
Bits on pharmacists in general: on-going education they are required
to perform, etc.

Start a "health scholarship" fund for area students "because we take
education to heart".  Funds to assist those students interested in
becoming health professionals, pharmacists, PAs, etc.  Each year at
high school graduation, you or a representative of the business
presents a scholarship to qualifying students who've applied to the
program.

I hope to someday see prince Edward Island as Anne Shirley introduced
my imagination to it a long time ago.  :)

Best regards,
journalist-ga