The major supermarkets, several other retailers and non-retail businesses are spending big pitching their loyalty programs already this year.
Their pitches tend to cast their loyalty program as key to unlocking value for shoppers. Value in this context should read as lower prices.
We think their increased focus on loyalty is their response to inflation and consumer sentiment associated with this.
Shoppers are concerned about prices, especially in must-purchase settings. From data we see, with want purchases, discretionary purchases, price is less of a concern.
We have found the best way to pitch value is through an easily understood loyalty program that does not compare to the poor-value over-hyped programs from the supermarkets and similar.
Seriously, what is a loyalty point worth anyway?
Each voucher has a dollar value. People understand $$ more than %.
On average, 19% of vouchers are returned and of those returned, a third are redeemed the day of, a third within 7 days and the last third within 28 days.
Guys are more likely to redeem right away whereas girls are more likely to redeem a week or more later.
In settings where shoppers don’t want the vouchers, there is an opportunity for a local charity connection, which extends the reach of the discount vouchers, better connects the business to a local charity and helps leverage that charity’s community to support you.
My advice, if you’re interested, is to take note that the major retailers are pitching loyalty more this year already. Consider what you can do in your business to engage with shopper interest in value.
We can help if you are interested.
Find out more:
- 1300 662 957
Thanks for reading.
We serve local specialty retailers across a range of product channels and are grateful to serve beyond our POS software, with retail advice and inspiration – to help local small business retailers compete and enjoy their businesses more. This is where local value can be nurtured and shared.