The customer can choose from a menu of different loyalty plan options, each with a different value proposition. The different plans can help to differentiate the types of customers further, based on their preferences by identifying their preferences. For example, a customer may choose as a reward for their plan a high-end treatment they would not normally buy without the discount offered in the plan. This tells Red Door what that customer really wants, but has yet to regularly pay for. At present, Red Door mainly collects information about what the customer buys, not what the customer wants.
This interaction provides Red Door with new data on the customer. From that data, promotions can be customized to focus on those services and products that the customer wants. The customer may decide, after a few discounted high-end services, that they can no longer live without that high-end service. The loyalty plan would otherwise function as any other -- the company is using a sweetener (service or product) to entice loyalty. The difference in this case is that by asking the customer to choose their own sweetener, the interaction with the customer works in reverse and Red Door learns something new about the customer that can be used in future direct marketing.
This loyalty strategy takes a slightly different approach to segmentation. Red Door's current marketing dashboard system essentially segments customers based on their purchasing patterns. These segments can be analyzed for demographic trends but it is an important distinction that the customer drives his or her own segmentation. This strategy has worked brilliant over the past couple of years for Red Door. The loyalty program continues that strategy, with the underlying premise that the company will gain more from listening to the customer than from dictating to the customer. By giving the customer the choice of reward, Red Door learns what segment the customer should or could be in, in addition to the information the company already has with respect to what segment the customer is currently in. By eliminating any gaps in the appropriate segment and the actual segment, Red Door can more effectively maximize the revenue per customer, the referrals per customer and the repeat visits per customer. Segmentation in this case would be very specific with each segment being a single product/service category (face, massage, body, nail, hair, wax, makeup, gentlemen, and packages).
There are three metrics for this new loyalty program. One will be the number of new loyalty program members. We would like to increase the number of current customer visits by loyalty customers by 20% by signing up new members. The second metric is the new members -- we would like to double our loyalty program membership in a year. The third metric is the revenue generated from the marketing we engage in as the result of the information we...
Revenue recognition is significant because it not only defines to the leaders of the company that the product sold is doing well in its markets but also that the price on the product is comparable to the competition - shown through the return of high premiums and that all expenses to make said product are being received through the sale of these products. "Process of recording revenue, under one of
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