Small business retailers often feel pressured to mimic the strategies of major national chains. This is particularly true with loyalty programs. However, big retailers are often selfish in their approach. Their loyalty schemes are designed to benefit their bottom line first, often by extracting as much money as possible through complex systems that are difficult for the average shopper to understand.
The Confusion of Points
Most large supermarkets, hardware stores, and furniture chains use points-based systems. A certain amount of spend equals a specific number of points. The problem is that a point in one store does not have the same value as a point in another. This creates a “convoluted” experience for the customer, who has to mentally convert points into a tangible dollar value to understand what they have actually earned. These systems are designed to give customers a vague feeling of a reward without necessarily putting real value on the table.
The Power of the Discount Voucher
If you are a local independent retailer, you have a significant opportunity to differentiate yourself. Instead of points, consider using a simple discount voucher with a clear dollar amount. For example, a voucher that offers $5 off a customer’s next purchase within a set timeframe is instantly understood.
Shoppers appreciate simplicity and transparency. When a customer looks at a receipt and sees exactly how much money they can save on their next visit, they feel respected and appreciated. This approach moves away from the “copycat” mentality and creates a reward that is meaningful, tangible, and unique to your specific business.
Driving Repeat Business
Transitioning to a dollar-value voucher can be a “game-changer” for small businesses. Feedback from retailers indicates that this method brings customers back sooner and encourages them to spend more. It removes the friction of complex calculations and replaces it with an immediate sense of value.
By choosing a loyalty program that is easy to understand, you differentiate your shop from the big business down the road. You are telling your customers that you value their business enough to provide a reward that is clear and useful.
Flexible Loyalty with Tower Systems
Our Tower Systems software is designed to help you drive better outcomes for your retail business. Our software includes robust loyalty facilities that allow you to choose the system that works best for your brand. While we believe discount vouchers offer a superior experience for both the retailer and the shopper, our system also supports loyalty points if you prefer that model.
…
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.
Recent Comments