Introduction - Customer Loyalty
 Within 5 years up to 50% of businesses in the retail sector will have some form of customer loyalty/reward scheme in operation. Benefits Customer Retention
The Key to success is keeping the customer base that you have built. Larger multiples are entering the Irish Market every day. These retail factories are able to compete on price like never before so in order to keep your customer base you have to make your customers loyal to you. Prevent Customer Migration:
By rewarding customer spending with you, you stops them from spending in several shops.
New Customer are Expensive:
Retaining your current customers is far cheaper than searching for new customers and the best way to do this is to make them loyal to you. Direct Marketing:
Each time your customers open their wallet they are faced with your card. This is direct Advertising at its best. Membership of Your Club:
By rewarding your customer for their loyalty or indeed making them loyal by rewarding them, you actually create a club. Customers see themselves as a member of your club rather than just a nameless, faceless number. The success of this can be seen with the likes of Tesco & Dunne's Stores.
Increase spend per visit / Track customer spending effectively.
By rewarding customers you increase their spend and YOUR profits. Profile Customers purchasing activity
You know how much they spend. Yearly & on each visit.
You can use your Database to reflect you entire customer base and market ALL your customers more effectively.
You can now track your customer habits like the large multiples do.
Software If you choose to purchase the software with the system you can use it store vital customer data and track
your customer’s spending habits. How much per head do your customer spend?
What ages profile is your customer base? By segmenting your customers at the application stage you can decide how best to market them. Should we be aggressively targeting the 18-24 yr bracket or the 25-30’s?
What sex should our marketing be directed towards? Once you have collected a persons details (at application stage) you can market your customers like never before.
Marketing – Mail Outs You can send marketing literature to people you know will open and read it. A person is much more likely to
open a letter addresses to them rather than a flier through the door. No more ineffective mail outs.
You Know which of your customers is spending more and you can target those customers with offers to maintain their high spend.
Those who have a small spend can be encouraged to spend more.
Mail outs normally attract the older customers. By segregating your customer base you can mail these customers and text the younger customers.
Marketing -Web Text
This is essentially free direct marketing at its best. You collect the customer’s mobile at the application stage. You get their permission to text them in the Terms & Conditions. You can sent them out adverts DIRECT to their phone for FREE.
Taking the web text a step further you can (while you are using the web text) offer a text back competition. These can be organised at a premium rate. Return On Investment - The 80/20 Rule The 80/20 Rule States that 80% of your business comes from 20% of your customers. If you reward the
loyalty of those 20% then YOU (not your competitor) will retain them and secure the long term viability of your business.
These 20% could in some businesses equal the breakeven point without which the Organisation would not be viable.
You can then use the system to increase customer retention. By increasing your customer retention from 20% to 25% the effects of just this small increase will increase your Turnover greatly. % No. Products €
20% 800 800
25% 1,000 1,000
40% 1,600 1,600 In this example a 5% increase in your returning customers = a 25% increase in your Turnover
If you work on a 30% GM = 7.5% Increase in your Gross Profit. While these figures are in their simplest form, this increase will pay for your system a number of times over in 1 year.
E.g. - Turnover 250,000 * 7.5% = 15,000.
Minimum Spend
You can set a spend level that your customer must reach before they qualify as a member. This will cover the
cost of your loyalty system and create a air of exclusivity for your scheme. For example, if you set a €30 min spend before membership is offered you can recoup the cost of the entire scheme over approx. 200 customers. (200X30*.35(GM)=2100) (software excluded) Savings on Your Marketing Spend You are marketing the people you know will spend with you. YOUR previous customer. There is no hard sell.
They have used your service and provided they were happy with it they should have no issue spending with you again. This is far cheaper than attracting new customers.
By segregating your customer base you can advertise in a manner only previously available to the larger multiples. Did you ever notice that you always get coupons for what you use? E.g. How do Tesco/ Dunne’s know that you may use a coupon for Nappies?
If your products can be added onto then you need to know who has purchased before. E.g. Furniture stores sell beds but they may also be able to follow up and sell the lockers, robes and other products that go with the first sale. How can you do this if you do not know who you have sold to?
Every time your customer opens their wallet your card is there serving as a constant reminder of your business.
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Simple, inexpensive, effective, self financing and financially rewarding. | 
