As the Mike’s Bikes business grew, so did the cycling market in general. The American market for bicycles is currently worth over six billion dollars, and competition is fierce. Understanding customer relationship marketing, and retaining clients with a loyalty program is extremely important for Mike’s Bikes.
Before signing on with Thirdshelf in February 2016, Mike's Bikes had a loyalty program, but they weren’t especially happy with the results. According to Chief Marketing Officer, Eric Lucan, the program wasn’t adding enough to the customer experience.
“For example, we would run a report that identified customers who had spent $6000 or more. We would inform them that they qualified for our club, ask them to fill out a form online, and then send them a package of gifts that including things like t-shirts and water bottles,” explains Lucan.
This program was far too manual, and didn’t reward the customer throughout their journey from a one-time purchaser to an ultra valuable customer.
Automation and better incentives with Thirdshelf
Mike’s Bikes now has a points/tiers program that gives customers instant gratification. Now, when a customer buys something for the first time, they immediately receive an email that gives them a snapshot of how many points they earned with that purchase. The process is automatic, whereas before it was manual.
For each dollar dollar spent, a customer earns one point. At various tiers (100 points, 750 points, 1000 points, etc) customers receive a free gift such as a gift card or water bottle.
Good news for all bicycle shops
“We would definitely recommend Thirdshelf to other bike stores looking for a customizable, turnkey loyalty solution,” comments Lucan. “We found that it was really easy to set up, especially because it syncs with our point of sale. There were no large upfront development costs, which is also really important for independent retailers.”
About Mike's Bikes
The original Mike’s Bikes was founded in 1964 in San Rafael, California. The staff and management of each Mike’s Bikes store are locals, and deliver a level of service and support that other neighbourhood bike shops can’t beat. Staff go through rigorous training to provide each individual customer with the right equipment for their needs. The Mike’s Bikes core mission: Get more people on bikes!