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Creating customer loyalty in retail

Oct 6th 2011, 08:30


Creating customer loyalty in retail

All retailers are faced with the difficult task of driving sales in specific periods for certain categories, regardless of what they’re selling. One way to do this that works particularly well is to implement short term loyalty programmers. Such programmes incentivise sales and get customers through a retailer’s doors.

An example of such a programme would be to say to customers that they will receive a free gift if they spend a certain amount of money over a given period of time in a particular category. Each time they spend money, they collect a stamp; once they’ve collected the required number of stamps, they can redeem a prize. This is the type of work that Dutch-based service provider, Brand Loyalty, is an expert.

According to Brand Loyalty’s extensive experience and research, this type of short-term loyalty programme applies to all LSM groups and any store format. It works because it provides consumers with an immediate call to action and guarantees every consumer who meets the criteria, a reward. It also increases basket value because consumers will end up spending more to claim their prize, which is related to the promotion, but is not a product that the retailer sells.

While the concept of short term loyalty programmes may be new to South African retailers, such offerings can be hugely successful in driving sales because little is more enticing to a consumer, the world over, than the opportunity to receive a free gift.

Wendy Smith

P.S. Look out for this editorial on our editor’s blog.

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