Loyalty schemes work for independents too
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In these cash-strapped times customer loyalty has never been so important. But with the rise of promiscuous shoppers driven purely by price, it's never been so hard to keep a loyal following.
Figures from the Centre for Retail Management (CRM) underline the importance of building a loyal customer base. According to CRM, only 12% to 15% of customers are loyal to a single retailer, yet those customers represent 55% to 70% of sales.
Large retailers with millions of pounds to spend on customer retention can simply throw their vast financial weight behind a loyalty card scheme and then inundate cardholders with money-off offers. But what about small stores operating on shoestring budgets? Is it possible for them to implement an effective loyalty card scheme at a relatively low cost?
There is no one-size-fits-all approach to loyalty marketing. The key to success is understanding what offer will truly add value to your customers without impacting too much on your bottom line says Rob King, director at smartphone loyalty application Loyalli.
"The most effective loyalty schemes are simple and transparent," says King. "If a customer is unsure how they will benefit from a loyalty scheme, they will stop using it. From this perspective, many find that a simple 'buy nine get one free mechanism' is preferred to a points accumulation model."
As well as offering transparency and value-added benefits, a loyalty scheme should utilise the latest technology and the data gathered should be used to strategically improve the retailer's business, adds King. However, retailers must never over-rely on it.
"Loyalty schemes are not the sole driver of success in your business," he cautions. "Factors like customer service and product quality still need to be offered at the very highest level. In fact, finding other ways to engage customers outside of your loyalty scheme - for example, sending a message to customers on their birthday - will have significant positive effects on your loyalty scheme and on your business."
Implement your own loyalty scheme
The Experts Gift Card programme has been designed with smaller retailers in mind.
With a low cost entry point, any retailer can get their own gift card or loyalty card scheme set up within weeks.
The Experts Gift Cards are fully flexible, meaning you can decide on the best loyalty scheme to suit your business. Start a point collecting scheme, offer a discount to loyal customers, or simply use the cards to monitor customer activity and offer targeted deals - it's your choice!
For just £199 you can receive an order of 100 gift cards which will enable you to be up and running with your own personalised card scheme within weeks. You will also receive access to a management information system which provides you with a range of information to help you manage your bespoke programme.
Click here to get started or call us on 0845 618 7256 to find out more.