Godiva Shares Its Secrets to a Successful Loyalty Program

Nov 30, 2012 2:20 AM  By

When a retailer creates a loyalty program it’s not just the consumers who benefit from cheaper deals and free gifts. According to Jordan Majkszak, director of marketing with ProfitPoint, the businesses benefit too since consumers are 46% more likely to shop with companies that offer loyalty programs compared to those who don’t.

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During a recent webinar with Demandware, Majkszak said there are two types of retailers who are using loyalty programs: those who do it, and those who do it well.

One company that runs very successful loyalty rewards programs is Godiva. During the webinar, Godiva’s director of development, loyalty and acquisition, Barbara Eskin, shared some of the chocolatier’s latest programs and offered tips on what retailers can do to help boost customers.

Earlier this year, Eskin said, Godiva ran “The Cake Bash Sweepstakes” where one lucky grand prize winner was picked, after they “Liked” its Facebook page, to go on a trip to Los Angeles with six friends to meet famed baker Duff Goldman.

The purpose of the sweepstakes, she said, was to “drive fan growth and engagement.” Although she didn’t give exact figures, Eskin said, during the promotion visits to the Godiva Facebook site “exceeded expectation by over 30%” and nearly three-times the number of people “talked about us” than originally forecasted.

Besides free trips to L.A., on occasion Godiva gives away free gifts with a purchase to customers. Eskin said this year the chocolate company gave away a free Godiva apron with any purchase of $30 or more, and it also gave away Godiva gift cards to customers who spent more than $50 or more. The kicker for that particular program, she said, was that the card can only be redeemed during Dec. 26 through Jan. 31, 2013.

Why the time frame? Since after the holidays is generally a slower time for most retailers, so the promotion is a great incentive for people to come into the store.

“This is a great tool when traffic might be a little off,” Eskin said.

Erin Lynch is the associate editor at Multichannel Merchant. Erin can be by emailing her at erin@multichannelmerchant.com. You can also follow her on Twitter at @LynchMCM or on LinkedIn.