At The Watercooler

At the Watercooler with Peter Vogel of vLoyalty

Peter Vogel, CRO at vLoyalty, says loyalty programs don't have to be complicated to be effective.

February 14, 2024 by Mandy Wolf Detwiler — Editor, Networld Media Group

Describe your current role:

I serve as CRO at vLoyalty, primarily managing existing key accounts with a huge focus on targeting new tier 1 & 2 restaurants and retail chains. We think our loyalty solution is an amazing fit for QSR and fast casual brands as our patented technology moves people through the lines faster, eliminating the need for a counter person to constantly ask for a mobile phone number or an app. We track everything through the payment card used. It's all automated and fast.

What was your first-ever career role and what is one important lesson you learned from it?

I was head of sales for a dot-com start-up in the late 1990s. In addition to learning about the challenges of a booming industry and then a crashing dot-com economy, I learned several important lessons from start-up life. When you have to raise money, when you have to pivot, when you have to lay off staff, when it becomes tough to pay bills and if you have to shut down a business ... these are all humbling experiences and can always lead to valuable lessons, if you're willing to learn them.

One lesson I learned is don't be afraid to ask for help. None of us can do it alone, but I've seen countless entrepreneurs keep secrets, refuse to work with peers and even act antagonistically towards others who could have helped them. We all win together and it's very hard to get far 100% on your own.Also, admit when you don't know something. Ask for help. Get expertise everywhere you can find it. And then, return the favor. Help the next guy or gal who is in need.

What inspired you to work in your industry?

In 1998, I was a founder of one of the first online 'point' programs where users earned points and gift cards for completing online tasks and purchases, like completing a survey or signing up for a credit card. Back then some of our biggest clients were AOL (remember the discs?), BMG Music Club, Magazines.com, Video Professor and even Publisher's Clearing House. It was the beginning of performance-based marketing, and loyalty programs were a perfect way to motivate people.

Now 20 years later, I still see that loyalty programs can help align the incentives of both customers and merchants. Provide customers with a product that is fairly priced, provide good service and then 'thank' them for their repeat business with incentives/rewards and you will develop a lifelong bond with those customers. Loyalty programs, when done well, create a win-win for customers and merchants alike.

What do you enjoy most about your current role?

I love being in a role where we can help our customers solve problems. Typically a restaurant or retail chain comes to us with one of these problems:

1. They've hit some sort of glass ceiling and can't seem to grow the loyalty program past where they are right now.
2. They're having trouble engaging with their existing members or don't even have permission to contact their members.The Loyalty program is inconvenient for members to use or takes too long in a fast-moving line.

Our loyalty automation can help our customers solve each of these problems, by automating the whole loyalty process, directly on the payment terminal with no need for a counter person at all.
The initial enrollment is automatic. The tracking of the purchases is automated by tracking the credit card. Even the rewards are automatically applied during the purchase, with no interaction from the merchant or the customer. It's all automated.

What's a common misconception people have about what you do?

Most people think about loyalty programs as a 'nice-to-have' option or as a cost of doing business, but, in reality, a loyalty program should be a profit center.
Loyalty programs typically increase overall sales from 10-20%.
Loyalty program members typically spend 40-60% more per average purchase than non-members.
It's not uncommon for loyalty program to have 10-15 times the ROI.
A well run loyalty program can be integral to the success of your business.

What industry trends do you think are currently over-hyped and why?

I think there is too large of a focus on mobile apps. Most consumers do not want to download another app. Some brands like Starbucks or Chipotle have such a loyal fan base they can get away with it, but in general, the average consumer does not want to download a mobile app just to use your loyalty program. It's fine to provide a mobile app as an option for ordering or checking rewards status, but we encourage our clients to never require a mobile app, just for someone to participate in your program.

What industry trends do you think don't get enough attention and why?

Loyalty programs are known to be effective, but people forget that step 1 is just getting someone to join your loyalty program. I don't think nearly enough attention is paid to making it easy to join a loyalty program. Many programs today require a mobile app, scanning a QR code or interaction with a counter person, who has to manually create your account. Wouldn't it be easier if a customer could just click on a few buttons on a payment terminal and become a member of your loyalty program? That's what we're passionate about about loyalty. How can we get more people to join your loyalty program?

What advice would you give to someone just starting out in your industry?

The Golden Rule never gets old. Treat people how you would like to be treated — with respect and dignity:

1. Because it is the right thing to do.
2. Because it also pays dividends.

The loyalty industry is pretty small and if you want to stay in the industry for a few decades, you will continuously run into the same folks at new companies, new conferences, new clients etc... People move from job to job a lot, but they don't forget how they were treated and who went the extra mile for them, when they needed it.

What do you do to have fun outside of work?

I love to cook and tend to go on 'binges' where I'll cook something repetitively for a while like crème brûlée, risotto, homemade pastas or breads. Currently I've been on a fermentation kick making everything from kimchi to kombucha to pickled corn. I just ordered a box of eight Iberican pork cuts, so I'll have my hands busy with pork for a while!

To learn more about vLoyalty click here.

About Mandy Wolf Detwiler

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Mandy Wolf Detwiler is the managing editor at Networld Media Group and the site editor for PizzaMarketplace.com and QSRweb.com. She has more than 20 years’ experience covering food, people and places.
 
An award-winning print journalist, Mandy brings more than 20 years’ experience to Networld Media Group. She has spent nearly two decades covering the pizza industry, from independent pizzerias to multi-unit chains and every size business in between. Mandy has been featured on the Food Network and has won numerous awards for her coverage of the restaurant industry. She has an insatiable appetite for learning, and can tell you where to find the best slices in the country after spending 15 years traveling and eating pizza for a living. 

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