You probably know about many different loyalty programs and how they've been implemented across many industries. From airline travel miles to coffee shop wallets, there are lots of different options to implement a loyalty program.

But for now we'll just focus on one of the simplest approaches you can take to implement a loyalty program at your club: a free membership card that grants a small discount when purchasing multiple drinks at a time.

This is one of the easiest and most cost-effective ways in which you could start to build a relationship with your customers. In fact, a first version could just consist of paper cards that you hand out to some customers at your club.

We've seen this strategy implemented successfully in several night clubs in Madrid. Next, were looking at some of the immediate impact this strategy could have on your business.

Inreasing Revenue with Loyalty Discounts

There are several incentives you could give members of your loyalty program focused on increasing revenue:

• Allowing free entry, even with a complimentary drink, before a set time. This will help you get that critical mass quicker and draw more organic customers from earlier on in the night. Most people without a plan on where to go look at how full and vibrant a club is before deciding to spend their night there, and having some of your most loyal customers already giving it all on the dance floor could be the bait prospective customers need to choose your venue.

• Offering a discount when purchasing multiple drinks at once. Something like a 10% discount when purchasing 3 drinks at once is all it takes to make customers happy. This strategy will make your customers spend more and stay longer at your club, while reducing operating expenses at the same time. We've seen some clubs even offer a 50% discount to increase attendance during the low season (that's during July and August in Madrid).

Optimizing Operations with Loyalty Program Data

Both of the above strategies will undoubtedly have a positive impact on your revenue and are relatively easy to implement. But I'm sure you're already thinking about many more possibilities.

The problem with a traditional system based on paper cards is that it's not easy to target the right customers with the right offers, and that it is quite difficult to measure the impact a particular loyalty benefit or campaign is having on your bottom line.

But it's actually not very hard to introduce some technology to help you track usage and start gathering some insightful data! Some clubs, like Fabrik (one of the biggest techno clubs in Europe) have moved their loyalty cards online. Users register for an account on the clubs website and get a PDF membership card.

Implementing a strategy like this one already allows you to reach out to your program members via email, even if you are not able to personalize communication based on their usage of the loyalty benefits.

While setting up an online platform to handle registrations might seem a bit daunting at first, there are some readily available options that could help you get started with little effort.

At FesteaPay, we provide a platform specifically made for clubs that can handle these kinds of simple loyalty programs efficiently without requiring club promoters to make an initial investment. Moreover, our technology provides room to grow as you start seeing your first results: from tracking usage and generating segmented campaigns to implementing a fully cashless system. Contact us today to find out how we can help you get started with your new loyalty program or take an already existing program into the digital age.