Introduction to FiveStars Loyalty

Get customers back in the door and spending more when they do.

Get customers back in the door and spending more when they do.

http://www.fivestars.com/businesses/

How are you growing your business?

DIRECT MAIL

PUNCH CARDS

COUPONS

PRINTADVERTISING

WORD-OF-MOUTH

Marketing options are exploding.

What should your focus be?

The highest return for your limited time

The highest return for your limited marketing budget

Marketing that is fun & easy to execute

You want:

Experts agree that loyalty is the most effective and

highest return marketing.

6 to 7It is times more

costly to acquire a new customer

than to retain an existing one. Retailers with loyalty

programs, on average, are

more profitable

than competitors who do not.

88%

Customer loyalty is the single most important driver of growth and profitability.

Do you have any of these?

Fortune 500’s invest millions into loyalty marketing.

The total U.S. consumer membership in loyalty-marketing programs today is more than 1

billion strong, with an average of more than four programs per adult.

Loyalty can help you increase visits, increase spend per visit, get more revenue from promotions, anddrive more word-of-mouth.

How loyalty drives revenue

CUSTOMER BEHAVIOR COSTS ROI

REWARDCOSTS

PROGRAMCOSTS

NETREVENUEINCREASE

VISIT MOREFREQUENTLY

PARTICIPATE INPROMOTIONS

SPEND MOREPER VISIT

$R

EV

EN

UE

How loyalty incentives work

Lisa visits once every 3 weeks.

As she gets closer to a reward, she starts visiting more frequently.

At one point away, you’ve seen her come in once a week!

You give her a reward because she spent more money in a shorter period of time.

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345 People saw this post

30 people like this.

Lisa just shared a link via FiveStars.June 15

Gracie

Like . Comment . Tuesday at 10:22pm

Cafe Venetiawww.cafevenetia.comGet the FiveStars Hook Up! Earn 10 points and get: 1 Free Espresso Drink

Just got a FREE Latte

I WANT ONE!!

Now she visits more frequently AND promotes your business online.

Lisa is so happy that she registers her card online and connects with Facebook.

You can also send targeted promotions right to her phone or inbox.

Imagine what can happen when you sign up ALL your customers!

Why FiveStars?

FiveStars wins the prize for

small business loyalty.

Our mission is to help businesses and communities thrive by turning every transaction into a relationship.

Our founders are passionate about helping small businesses...

Matt Doka,CTO, Co-founder

Victor Ho,CEO, Co-founder

Advised industry-leading Fortune 500 brands on customer engagement and loyalty

Clients included the largest department store chain in the US and a $25 billion CPG conglomerate

Awarded rating of “Distinctive” at McKinsey (top 5 of 100 in nation)

Kilian Koepsell Software

Lead Scientist at Cal

(led project mapping the

human brain!)

Postgrad Mathematics Lecturer

(King’s College London)

Neural Computation Lecturer

(Cal)

Ph.D., NeurosciencePh.D.,

Theoretical PhysicsM.A.,

Mathematics

Chris LuoMarketing

Global Head of Small and

Medium Business Marketing

at Facebook

Head of Acquisition

Marketing, APAC at Google

Patrick Eastburn Sales

Built AT&T to 600 reps and

$144M in revenue

over 5 years

Experience running outside

sales, call centers, and sales

training

Melissa HajjDesign

Led design for iBooks and

Compressor at Apple

14 years of experience

designing media editing apps,

electronic medical records,

corporate identities, and print

...and they recruited a team of industry experts to do it.

How does FiveStars work?

We help you develop a customized loyalty program.

Buy 10 subs, get one free!

Spend $100 on stationary, get $5 off!

10 Points = Free Coffee

20 Points = Free Sandwich

50% off every 5th visit ($20 MINIMUM)

Instantly know your customers’ information

right on the POS.

Track your program results online...

...and get to know your customers.

For the first time ever, sync marketing with actual spending behavior...

...and see immediate results withtext message campaigns.

Increase FootTraffic

Get MoreCustomers

Run SeasonalSpecials

Drive more word-of-mouth with social media.

Like . Comment . Share

345 People saw this post

30 people like this.

James just shared a link via FiveStars.June 15

Gracie

Like . Comment . Tuesday at 10:22pm

$UPDGLOOR�:LOO\·V�http://www.armadillowillys.comGet the FiveStars Hook Up! Earn 10 points and get: 1 Free Griddled Burger or BBQ Sandwich

-XVW�JRW�D�)5((�%%4�6DQGZLFK�IURP�$UPDGLOOR�:LOO\·V�

I WANT ONE!!

Partnering with FiveStars is one of the best business decisions we’ve ever made!

- Rosen, Owner of Verde Tea Cafe FiveStars client since February 2011

Case Studies

Actual text message sent onFeb. 14, 2013 at 11:15 am

One of our Client Success Managers convinced Jim, a FiveStars business owner in Texas, to send out a Valentine’s Day text message to their customer base using our Merchant Toolkit.

Jim had never used our texting services before,and wasn’t convinced it was going to bring people in the door.

Got 3 already. One within 5 minutes!

-

Well, you have convinced Don and one of my staff. I actually did get $107.40 in sales. I will have to try it again sometime.

Soulman’s BBQ had a 4 percent response rate from texting a timely, relevant promotion to its customers.

ACTUAL COMMENTS RECEIVED FROM OWNER AROUND NOON THE SAME DAY:

LATER THAT DAY:

Armadillo Willy’s (Watch Video)8 locations in the Bay Area, CA • Member Since Jan 2012

Armadillo Willy’s is an 8-store BBQ chain with a strong local presence in the Bay Area. Prior to using

FiveStars, they tried to connect with customers through an opt-in email list. They had successfully built a

small database of customers, but wanted a solution that would get all of their customers engaged.

GOALS

• To better understand their business through

customer spending analytics

• To have a loyalty program that could be used

across all 8 restaurant locations

• To send emails that were targeted to different

types of customers

• To grow their presence on social media

• To reward and turn more customers into loyal

repeat buyers

REWARD STRUCTURE

5 pointsFree snack or side

10 pointsFree burger or BBQ sandwich

*1 point = $5 spent

RESULTS

After a year on FiveStars, Armadillo Willy’s has

seen a tremendous response from their customers.

Their customer database exceeds 13,000 members,

and they have successfully rolled out weekly email

campaigns to their customer segments, with plans to

begin text message campaigns in the near future.

13,250members

1,035VIP members(10+ visits)

3,100referrals

$857Ktracked spend

38.5% increase in visits

per month

9,607 additional visits

to-date

Before FiveStars 1.3 visits per month

After FiveStars 1.8 visits per month

The ease of signing up customers has been great. We are now able to

better connect with customers and get to know who they are and how

often they come in. I love my customers and I love FiveStars! —Tim Ford, COO

http://vimeo.com/46069317

Bitter+Sweet (Watch Video)Cupertino, CA • Member Since Sept 2011

Bitter+Sweet was built with a focus on connecting with the local community. Recognizing and rewarding

loyal customers has always been their top priority. Before upgrading to FiveStars, Bitter+Sweet was using a

standard “Buy 10, Get 1 Free” paper punch card.

GOALS

• To provide a loyalty solution that appeals to

tech savvy consumers of Cupertino, yet is easy

enough for everyone to use

• To better connect with customers by knowing

their names and how often they come in

• To identify their best customers and target their

marketing specifically to them

REWARD STRUCTURE

10 pointsFree coffee

RESULTS

Bitter+Sweet has an iPad POS and has been

using FiveStars on a standalone netbook. The

owner has made it a priority to enter in all the

names of her customers to ensure that she and

her staff can treat everyone like a regular. As a

result, Bitter+Sweet has seen a noticeable increase

in customer visits and has received extremely

positive feedback from customers who love not

having to keep track of their punch card. FiveStars has driven customers back and increased their interest in my

business. The interactions with my customers are much more enjoyable.

I would definitely recommend FiveStars for all businesses.

—Janice, Owner

3,410members

449VIP members(10+ visits)

1,818referrals

$160Ktracked spend

2,000 additional visits

to-date

13.5% increase in visits

per month




Tpumps Tea Shop San Mateo, CA • Member Since Sept 2011

Before opening, the owner of Tpumps knew he needed to stand out from the two other teashops in town.

He wanted an easy way to get first time customers to come back again and again. During Tpump’s soft

opening stage they used a mobile loyalty app, but had less than 20 customers signed up after the first few

weeks.

GOALS

• To encourage first time customers to come back

• To build a base of loyal customers to carry the

business from soft opening to a profitable new

business

• To offer an engaging loyalty program that all

customers would use and love

REWARD STRUCTURE

10 pointsFree beverage

20 pointsFree beverage + bag of tea

30 pointsFree beverage + eco-cup

150 pointsFree beverage + stuffed panda

RESULTS

Within the first 3 weeks of switching over to

FiveStars from a mobile app, Tpumps signed up over

300 people. Now, just a year and a half later, Tpumps

is so popular that it’s a regular occurrence to see a

long line of customers down the block. Tpumps is

now launching their second location, which will also

be using FiveStars.

—Alex Su, Owner

Partnering with FiveStars was an incredibly effective and convenient

way for me to ensure that customers who loved my product would

keeping coming back again and again.

13,905members

3,958VIP members

(15+ visits)

3,816referrals

$1.1Mtracked spend

35% increase in visits

per month

20.2K additional visits

to-date



Fibbar & Molly MaGee’s (Watch Video) 2 locations in the Bay Area, CA • Member Since Aug 2011

Fibbars was created to be a pub you can call home—with comfortable seating, regulars to talk to, and a pint

of Guinness. During the day, they’re open as a bar and restaurant, then at night, turn into a crowded bar. They

needed a loyalty program to appeal to both the casual happy hour customer and the late night partygoer.

GOALS

• To have an easy to use program to reward their

best customers

• To have a better way to reach their customers

than an email newsletter

• To have a customizable program that lets their

customers choose what rewards they want to

redeem

• To increase their word-of-mouth referrals

by getting more customers to check-in on

Facebook

REWARD STRUCTURE

5 pointsFree cover

RESULTS

Both Fibbar & Molly MaGee’s saw immediate success after launching their loyalty program. The lure of earning a free cover admission had a viral effect with their patrons because of its uniqueness and general appeal. This great reward, coupled with FiveStars social media integration, has also increased their word-of-mouth referrals. Friends of customers on Facebook have responded very well to seeing their friends earn free cover to a bar.

I love being able to use the texting tool to reach customers through

FiveStars. We’re able to send quick specials right to their phones at an

extremely low cost, and we’re confident our messages are reaching

them.

3,000members

321VIP members

(15+ visits)

635referrals

$97Ktracked spend

14% increase in visits

per month

476 additional visits

to-date



10 pointsFree appetizer platter

*1 point = $10 spent

—Lara, Assistant Manager at Fibbar Magee’s


TRY FIVESTARS FOR FREETo Celebrate National Small Business Week

In appreciation of small business owners nationwide, try FiveStars free of charge for 30 days and see why thousands of local businesses trust us to increase their foot traffic and sales.

FREEMONTH

ENDSJUNE 30

FREEMONTH

ENDSJUNE 30

• Fully Customized Loyalty Program

• Unlimited Free Cards

• Unlimited Email Campaigns

• Social Media Integration

• Text Message Marketing

• POS Integration (If Desired)

• Unlimited Training & Support

• Free Online Educational Resources

LIMITED TIME OFFER

RISK FREE

CANCEL ANYTIME(in first 30 days)

FEATURES:

10xRETURN ON TEXT MESSAGE

CAMPAIGNS

UP TO

20%INCREASE IN CUSTOMER

VISITS PER MONTH

ON AVERAGE YOU’LL SEE:

Introduction to FiveStars Loyalty

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