Customer Loyalty Program - Frequent Shopper Program
Customer Loyalty Program - Frequent Shopper Program
But what kind of programs will all these enthusiatic retailers bring to market?
It is essential to understand the “RIGHT” program for your industry, your retail model and most importantly, your customers’ exclusive preferences.
Any frequent shopper program will allow you to store customer information, offer schemes and discounts and increase marginal sale. But does they potray your retail brand’s message or they add force to your retail expansion?
A loyalty program should be a logical and reasonable extention of your business, rather than a random attachment any service provider could offer.
Most likely, all such programs offers out-of-the-box points and rewards schemes. They are very easy to develop and deploy; but in a longer run they may be expensive, unyielding and worst at reaching the goals. Stand-alone CRM programs often narrows down your scope of expansion and minimizes lifetime customer value.
Such programs, as we’ve said before, may have serious pitfalls for the unwary:
1. Many reward programs treat all customers alike regardless of their potential for incremental business.
2. Those programs that do differentiate among customers with privileged status based on frequency find that frequency doesn’t necessarily correlate with profitability, and may not support the segmentation of customer needs.
3. They can be too expensive to be supported by some retailers’ margins.
4. Customers have a decreasing attention span and declining bandwidth; they already carry too many mileage cards, hotel cards, supermarket club cards and punch cards.
5. And the most serious drawback is that many structured reward programs fail to motivate incremental business, while rewarding purchases that would have been made anyway.
Building a right kind of program provides and extention to the current system and that allows not only points and reward schemes but also provides an integration.
Building a right kind of program will stimulate acquisition and usage. Integrated CRM programs not only provides points and reward schemes but also allows a retailer to make well-informed decisions.
1. It helps a retailer to differentiate a set of repeat customers with that of countless flying customers.
2. It will also build credibility amongst potential buyers.
3. It will help you to analyze their buying trends and thus helps you in choosing right product and services your customers are looking at.
4. It helps you to focus on service excellence and quality.
Retail operates in a tight market, with rivals offering similar value propositions – similar brands and product range including competitive prices.
You have customers. They have to have a great experience with you to become your advocates and a good one to remain customers. But if this value chain isn’t working seamlessly, you’re in danger of losing your customers.
Customer Loyalty Program Frequent Shopper Program - To learn more about this author, visit Nilesh Shah's Website.
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An unbiased potential area for implementing and enhancing customer relationship programs today is Retail Industry.
But what kind of programs will all these enthusiatic retailers bring to market?
It is essential to understand the “RIGHT” program for your industry, your retail model and most importantly, your customers’ exclusive preferences.
Any frequent shopper program will allow you to store customer information, offer schemes and discounts and increase marginal sale. But does they potray your retail brand’s message or they add force to your retail expansion?
A loyalty program should be a logical and reasonable extention of your business, rather than a random attachment any service provider could offer.
Most likely, all such programs offers out-of-the-box points and rewards schemes. They are very easy to develop and deploy; but in a longer run they may be expensive, unyielding and worst at reaching the goals. Stand-alone CRM programs often narrows down your scope of expansion and minimizes lifetime customer value.
Such programs, as we’ve said before, may have serious pitfalls for the unwary:
1. Many reward programs treat all customers alike regardless of their potential for incremental business.
2. Those programs that do differentiate among customers with privileged status based on frequency find that frequency doesn’t necessarily correlate with profitability, and may not support the segmentation of customer needs.
3. They can be too expensive to be supported by some retailers’ margins.
4. Customers have a decreasing attention span and declining bandwidth; they already carry too many mileage cards, hotel cards, supermarket club cards and punch cards.
5. And the most serious drawback is that many structured reward programs fail to motivate incremental business, while rewarding purchases that would have been made anyway.
Building a right kind of program provides and extention to the current system and that allows not only points and reward schemes but also provides an integration.
Building a right kind of program will stimulate acquisition and usage. Integrated CRM programs not only provides points and reward schemes but also allows a retailer to make well-informed decisions.
1. It helps a retailer to differentiate a set of repeat customers with that of countless flying customers.
2. It will also build credibility amongst potential buyers.
3. It will help you to analyze their buying trends and thus helps you in choosing right product and services your customers are looking at.
4. It helps you to focus on service excellence and quality.
Retail operates in a tight market, with rivals offering similar value propositions – similar brands and product range including competitive prices.
You have customers. They have to have a great experience with you to become your advocates and a good one to remain customers. But if this value chain isn’t working seamlessly, you’re in danger of losing your customers.
Customer Loyalty Program Frequent Shopper Program - To learn more about this author, visit Nilesh Shah's Website.
Like this article? Share it with your friends
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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