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Benefits of identifying and rewarding online Facebook Fans offline at the point of sale

(Update: We have made several changes to Taggo since this post. Please visit the following sites for more details.

Besides ez-link, we now use mobile phone numbers as an ID, it can be anything now, email address, credit card number, etc..

Case Study: Charlie Brown CafĂ© Fan Club Benefits beats UOB credit card discount 115 - 18
Video of how Fans can register for Fan Benefits:

There are many posts about the benefits of using Facebook Pages for your businesses, but none about the benefits of identifying and rewarding online Facebook Fans offline at the point of sale.

Here are some of the benefits that and I have learnt from businesses and fans when pitching to them about about the solution.

1. Turn customers into fans at the point of sale
There are many fan pages out there and the success of the fan page is often determined by the number of fans that “like” the page.

However, most Facebook pages have very little fans compared to the number of customers that visit the store.

As such, the clients have agreed that the solution will turn more customers into fans because the customers now have a reason to be a fan. That reason is amplified when the customer sees a poster by the cashier that he/she can enjoy a discount or promotion by LIKING the brand’s Facebook page.

With the Facebook app a most have in all smartphones today, it is very easy for the customer to whip out his/her smartphone and LIKE a page.

Mind you, this “liking” is not a clickthrough via an ad, but rather a LIKE that resulted from a real monetary purchase in the store.

With this, brands don’t have to depend on friends of friends to LIKE a page, but rather on a paying customer at the store to be a fan.

2. Turn fans into loyal VIP customers
With brands bombarding Facebook users with fan pages, it isn’t surprising that fans might LIKE a Facebook page and totally forget about it.

The bombardment of Facebook pages will result in the fan asking “why should I like this page?” and “what benefits do I get for Liking this page”?

Many social media experts will tell you that it is all about content. While content equates brand awareness online, does it spur the fan to make a purchase offline?

Facebook users I asked do agree that content helps to keep the fan page alive, but they get very excited when I tell them that now the store can identify you as a fan and reward you because you are a fan.

These Facebook users usually go “Wow, I am being treated like a VIP offline just because I LIKE the page”.

3. Reduces the cost of loyalty marketing
Many brands take on the strategy to grow and retain existing customers. This is an important strategy because retained customers often results in repeated sale.

On the retail side, the cost of traditional loyalty marketing is actually very high. So high, that most often cards request that you spend a certain amount or pay a small amount to cover the cost of the program.

It cost about $10 per loyalty program member and this is just  the cost of processing the membership form, provision of the plastic card and the accompanying printed materials. There are also the cost that brands have to take consider to bride their customers to fill the form as most people now resist carrying a loyalty card.

Taggo is constantly identifying means of using existing RFID cards to help the brands reduce the cost of getting new cards. In Singapore, Taggo uses the popular EZ-Link card which is reported to have in millions in circulation. The reason is obvious as most Singaporeans require the EZ-Link card to travel in public transport.

In Malaysia, Taggo has identified the Touch-And-Go card as the RFID card for use there and are looking at ways to incorporate it.

Assuming that there is no unique RFID card to be used in the country, the solution would  be the sticker. However, the cost of turning customers into fans with the sticker would only be that of the sticker,  the cost per acquisition charge and minimal hardware. The cost of administration would almost be non-existence as the customer will most likely be a Facebook user.

In some countries, the number of Facebook users almost equals to that of the Internet population so it can be for certain that it is very likely the customer now at the shop is a Facebook user.

4. Offer instant gratification to the social media generation
Traditional loyalty programs require that you spend and gain points. It takes awhile to be rewarded as most rewards require lots of points so that the brand ensures the reward is actually paid for by the customer. solution provides the brand with a solution to reward the social media generation almost immediately at the point of the sale.

For example, it could be an immediate 10% discount or even a fan gets to get a gift from selected purchase.
The promotion may not even need to be at the point of sale, but rather before it. For example, a restaurant could identify the fan at the entrance and provide preferred sitting. Or the restaurant could give the table a round of free drinks or side dish because he/she is has been identified as a fan.

As such, provides flexibility for the brand and rewards the social media generation instantly.


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