Many small business retailers feel pressured to mimic the loyalty strategies of major national chains. Often, this leads to the implementation of a points-based program, where customers accrue points on every purchase to eventually redeem for products or discounts. While this is a familiar model, it may not be the most effective way for an independent retailer to demonstrate value to their customers.
The Complexity of Points
The challenge with points-based systems lies in their perceived value. If you ask a customer how much 50,000 points are worth, they often cannot give you an answer without looking it up. The value of a “point” is arbitrary and varies significantly from one retailer to another. What is worth a significant amount at a major supermarket may be worth very little at another national store. For a customer, this creates a layer of friction and uncertainty regarding the actual benefit they are receiving for their loyalty.
Ask any shopper and they know what a $ is worth whereas they will struggle to know what a point is worth.
Our approach at Tower Systems is to provide small business retailers with clarity, and options.
The Clarity of Discount Vouchers
At Tower Systems, we offer an alternative called discount vouchers. While the name is simple, the impact on customer engagement is significant. Instead of abstract points, this system calculates a percentage of a customer’s purchase and prints a specific dollar value directly onto the bottom of their receipt.
For example, a customer making a $500 purchase might receive a voucher for $45 off their next visit. This voucher can be set to expire within a specific timeframe, such as 28 or 60 days, encouraging a return visit to the store.
The primary advantage of this approach is immediate clarity. When a customer sees a $45 reward, they instantly understand its value. There is no confusion or need for calculation. Everyone knows what $45 is worth, which makes the appreciation feel more tangible and direct.
Tailored for Small Business
While large-scale retailers often find voucher systems too complex to manage across thousands of locations, we have simplified the process for the independent specialist. Our software gives you complete control over how the voucher amount is calculated and how it can be used within your business. You can choose to enable points, vouchers, or both, depending on what best serves your specific customer base.
Hundreds of our customers are already using discount vouchers to drive repeat traffic and increase average spend. By providing clear, dollar-driven incentives, you can move away from the ambiguity of points and offer a loyalty experience that is easy for your customers to understand and appreciate.
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The right POS system or website for any retail business depends on the specific needs of the retail business. Tower offers POS software and websites made specifically for local small business retailers in a selection of retail channels. To see if we might 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.
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