Does Retail Marketing Encourage Return Customers?

The aim of retailers large and small is to encourage customers to spend money in their store and to return time and time again. So they use a whole barrage of retail marketing tools to achieve their goals. But the basic principle is to reward customers for buying their products, the more the buy the bigger the reward they can claim.

From the customers point of view they see these offers as meaning they are getting something for nothing or twice as much for the price of one. They collect points until they have enough to redeem them for a gift they have seen in the gift catalogue that has been sent to them. Or they may prefer to save up their points until a special occasion and get money off their weekly shop or get luxury items for free.

Many of the larger nation wide retailers face stiff competition from rival retailers so they spend a fortune on loyalty and reward programs which allow the customer to build up points that can be used in payment for their shopping once they have saved enough. This usually involves the shopper in handing over their points card each time they shop. The cashier swipes the card and points are added according to the amount of money spent.

Catalogue are sent to customers who have registered with the scheme which they can browse and choose gifts they want in exchange for their points. The choices are varied and the customer can choose from days out, cinema tickets, air miles or gift products. Many of the gifts can only be exchanged for points, but some of the more expensive ones can be redeemed for a mixture of money and points.

A reward program is another marketing tool, which is based on the same principle but is usually an addition to the points received for shopping. Customers are sent vouchers which allow them a set amount of money off when they buy a specific product and present the voucher at the till. Or if they purchase the named product they receive additional points.

Retailers use their marketing tools to promote certain products which may be new to the market place. It is also a useful way to increase sales turnover on products which may be popular, but for some reason have become slow moving and they need to move their stock.

The buy one get one free tool has become very popular with all retailers not just the larger supermarkets. But it is also the source of some controversy. Is it really a bargain if you get one for free if you only need the one, particularly if it is a perishable item? Many retailers often sell the single product cheaper, so instead of buying the offer pack, two singles give more value for money.

Retail marketing ploys impact on every aspect of our lives. Whatever we purchase in terms of products and services today has become subject to these type of selling practices. Whether the claims made are true and we really are getting a bargain, is only true when we really needed the product of service in the first place.

Creating Reward program since 1981, we’ll design a Loyalty cards strategy to meet your goals, surpass your customers’ expectations, and inspire long-term loyalty and growth.

No related posts.