The POS Software Blog

The POS Software Blog

News from Tower Systems about locally made POS software for specialty local retailers.

The unexpected power of up-front rewards: our retail loyalty story


Forget everything you think you know about loyalty programs. This isn’t a story about points slowly accumulating towards a distant reward. This is about a small business owner who discovered the magic of front-ended customer appreciation, and how a simple $2 voucher turned into over $1,500 in sales.

Intrigued? Let’s dive in.

We own a shop. yes, this story is about one of our shops. It’s a newsagency, but it’s not really, it is so much more than that. We focus on high-quality, unique items that go beyond the daily newspaper. While most customers are regulars, a significant portion are passersby – folks who wouldn’t normally consider us a destination.

One day, a customer browsing our greeting cards made a small purchase. Little did they know, their receipt held the key to a much bigger discovery. It wasn’t a points reward, but a discount voucher for nearly $2.

This seemingly insignificant gesture had a profound impact. Here’s why:

  • Location Advantage: Being situated near the parking lot meant foot traffic was already in our favor.
  • Strategic Product Placement: The customer was drawn in by the greeting cards, a deliberate choice to showcase our offerings.
  • The Power of the Voucher: The discount sparked curiosity, prompting them to explore beyond their initial purchase.

This unexpected $2 nudge led them to a locked glass cabinet filled with beautiful, collectible items (it doesn’t;t matter exactly what they are for this story) – what they were looking for as a special gift. The price wasn’t a barrier; they wanted something lasting. And just like that, a $500 item found a new home.

But the story doesn’t end there. Weeks later, the customer, who rarely visited the shopping centre, returned for another $500 purchase. This became a pattern, with them placing yet another $500 order shortly after. A single $2 voucher had directly influenced over $1,500 in sales!

The Secret Sauce?

It wasn’t magic. It was a structured, consistent approach to loyalty built on three pillars:

  • Smart Software: Our system automatically generated vouchers based on pre-defined rules, ensuring a seamless experience.
  • Engaged Staff: A brief, professional explanation of the voucher by the staff member added a personal touch.
  • Strategic Product Placement: High-margin products, like the collectible items, were strategically positioned to capture attention.

This approach disrupted traditional loyalty programs. Instead of delayed rewards, we offered an immediate incentive to explore. And it worked. People responded in unexpected ways, ultimately leading to increased profitability.

Can This Work for You?

We think so. The key is to have:

  • The Right Products: Offer unique, high-quality items that resonate with your target audience.
  • Strategic Placement: Showcase these products prominently to entice exploration.
  • A Winning Pitch: Train your staff to deliver a brief, professional explanation of the voucher program.
  • A System That Works: Invest in software that automates voucher generation and tracks results.

By prioritising upfront appreciation, you can turn casual browsers into loyal customers, like we did in our own shop. Tower Systemscan help you achieve this with their flexible loyalty program software. From discount vouchers to other creative options,they empower you to craft the perfect strategy for your business.

So, ditch the traditional loyalty model. Embrace the power of up-front rewards and watch your sales soar!

By Mark
The POS Software Blog




Recent Comments

Monthly Archives