Cash IS king when it comes to rewarding shoppers. We say that based on the results of the discount voucher facility in our small business targeted POS software. Launched in February 2013, this facility continues to outperform a traditional loyalty points offering, which is also available in our POS software.
In a typical shop, 20% of cash discount vouchers provided are redeemed with 33% redeemed the day of, 33% within 7 days and 33% within 28 days.
Businesses with less regular (weekly) shopper engagement benefit the most: garden centres, bookshops, gift shops, jewellers, outdoors shops.
Businesses that attract one time or very infrequent visitors benefit the most.
Guys tend to want to redeem immediately while girls will redeem over time. If they have the opportunity, girls are more likely to put two or more vouchers together for a better redemption.
Smart retailers calibrate financial support for the loyalty program in their pricing model.
The biggest discount voucher we have seen produced is $2,500 with the purchase of a jewellery piece. In that business, the typical voucher value almost always results in another purchase. In a smart move, the business rules require the voucher to cover a third or less of the purchase price.
At the other end of the scale, in newsagencies, tourist shops and discount variety shops, cash discount vouchers of $1 or less continue to drive incremental business.
The most interesting data to us is the cross product category drift: where a shopper accrues voucher value from one product category and redeems the voucher in a different product category. Newsagents offer the best example of this with accrual funded through the purchase of cards and redemption for magazine purchases.
This is all on our mind today because of the news this week that the Cashrewards program is shutting down immediately. In my experience, cash rewards offered shoppers to nurture loyal engagement help local small business retailers grow.
While we can see why some might say the Cashrewards news is a shake up for loyalty, I think it’s too early to say, especially given so many local and independent retailers are growing by offering their own self-managed cash rewards.
When it comes to shopper loyalty, Tower Systems is here to help local small business retailers to offer a loyalty solution over which you have easy and active control, to grow your business and to help your shoppers feel love from you.
…
While the right POS system for any retail business depends on the specific needs of the retail business, Tower Systems was built to serve Australian and New Zealand local small business specialty retailers. To see how we can help you…, request a free, no-obligation demo today.
Call 1300 662 957 in Australia or 0800 444 367 in New Zealand. Or, email sales@towersystems.com.au.
Recent Comments