Loyalty programs for retail customers
Wal-Mart continues to see a drop in its same-store sales despite cutting some of its prices even further. Not only is this bad for Wal-Mart executives and employees, this is even worse news for the 3,425 suppliers in California. (Source: walmartstores.com)
But local retailers can actually learn a lesson from Target which showed a gain in sales numbers. Instead of cutting prices, Target is drawing in the customers through promotions. The company is offering a 5% discount on daily purchases in the fall to holders of its branded debit and credit cards. Their Pharmacy Rewards program is also undergoing changes. Beginning this fall, guests will receive a coupon good for 5% off a future day of shopping every time they fill five prescriptions at a Target pharmacy with a Target REDcard. (Source: http://investors.target.com)
If you have a small business, this is the right time to launch a loyalty program or ensure that the program you have in place is working effectively. But first understand who your most loyal customers are. Talk to your customers and ask them what makes them like your business, and more important, don’t be afraid to ask what would make them decide to choose a competitor over you. And then figure out what programs you can implement.
There are multiple sources to tap into to get great ideas for loyalty marketing. Let me know if you need any help.
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