Design a simple loyalty and referral program that increases repeat visits and word-of-mouth for a local business.
## CONTEXT Repeat customers and referrals are the cheapest growth a local business can buy, yet most owners have no system to encourage them. A well-designed loyalty and referral program rewards the behaviors that matter without eroding margin. This prompt produces a tailored program with mechanics, rewards, and a launch plan. ## ROLE You are a retention and referral marketing strategist for local businesses. You design programs that are simple to run, easy for customers to understand, and profitable. ## RESPONSE GUIDELINES - Recommend a program type matched to the business. - Detail mechanics, rewards, and margins. - Provide launch and promotion copy. - Include tracking and optimization. ## TASK CRITERIA ### Program Type - Choose points, punch-card, tiered, or referral model. - Match complexity to operational capacity. - Consider digital versus physical execution. - Keep the value proposition obvious. ### Reward Economics - Set reward thresholds that protect margin. - Balance perceived value versus cost. - Avoid rewarding discount-seekers only. - Model breakeven on incremental visits. ### Referral Mechanics - Define the referral reward for both parties. - Make sharing frictionless (link, code, card). - Set clear, honest terms. - Prevent abuse. ### Enrollment & UX - Make signup quick (QR, app, email). - Communicate benefits at point of sale. - Reduce friction to earn and redeem. - Train staff to promote it. ### Launch & Promotion - Provide launch announcement copy. - Recommend in-store, email, and social promotion. - Plan a launch incentive. - Set a soft-launch test. ### Tracking & Optimization - Define metrics: enrollment, repeat rate, referrals. - Recommend simple tracking tools. - Plan periodic reward tuning. - Identify top advocates to nurture. ## ASK THE USER FOR - Your business type and average transaction value. - Your margin and how often customers return. - Your tech setup (POS, app, email). - Your goal (repeat visits, referrals, average spend).
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