System Overview
 A unique handheld Loyalty System for the Retail Industry. Retail Rewards will help your business to: • Increase Profits Using the Retail Rewards Loyalty System, you gain all of the benefits of the famous branded Loyalty Systems, at a fraction of the investment. Reward your Business with Loyalty
Increase Loyal Customers Handheld Loyalty System The HawkWeb Retail Rewards Loyalty System is a unique, easy to use handheld loyalty system that uses
the latest smart card technology to offer a customer loyalty solution to the retail industry. Developed using the same technology as the highly successful Dunne Stores Value Club Card, Tesco Clubcard and Boots Advantage card, the Retail Rewards Loyalty System rewards your customers with loyalty points every time they make purchases from your business. The system uses plastic credit card style Loyalty Cards to accurately store this information, whilst providing
a professional image of your company that a customer’s keeps in their wallet, acting as a constant reminder of your company. Creating Customer Loyalty The Retail Rewards Loyalty System encourages your customers to become loyal to you, and in return for their loyalty you give them something back in the form of reward points that they then redeem with your
business. This relationship, whilst not only demonstrating how much you value your customers, generates repeat business; increasing the frequency of customer visits, and the amount of money they spend during each visit. The need for Customer Loyalty Keeping customers loyal to your business can be the difference between breakeven and profitability. By
using the Retail Rewards Loyalty System you can help minimise customer migration and improve cash flow. Returning customers are vital to your long term business success, and this has never been more apparent than in the highly competitive retail sector. As a customer’s relationship with a company lengthens, profits rise, considerably. Companies can boost
profits by almost 100% by retaining just 5% of their customers.. - Fred Reichheld Source the Financial Times Wednesday 31st March 2004 Using a loyalty system encourages your customers to keep coming back to you, but also at the same time encourages them to spend more. With the Retail Rewards Loyalty System you can:
- • Increase Customer Retention
- • Increase Customer Frequency
- • Increase Customer Spend
- • Increase Customer Referrals
- • Increase the Success of Your Marketing Strategies
- • Enhance Your Company Image
Discount Disasters In order to boost sales many businesses turn to discounts to attract more customers. Unfortunately the problem with discounts is that although sales may increase, the costs to your business stay the same. This can lead to the negative situation of having to work harder, and sell more, to earn the same amount of profit as you would selling less at full price. With the Retail Rewards Loyalty System you avoid the discount trap by rewarding your customers with
Loyalty Points every time they spend money with you. Customers collect their points until they reach totals where they can redeem them against future purchases. What this effectively does is, encourage customers to return to you, and encourage them to spend more with you. So now instead of depleting your profits through discounting, you are actually putting a system in place that
will increase your profits through repeat business. Whilst discounts may increase the number of sales you make, you require substantially more sales to reach the same level of profits as you would selling at full price. By using the Retail Rewards Loyalty System you never have to give discounts away again. Instead, you reward your customers with Loyalty Points, which they collect to the value of what they spend. You decide
the ratio, it could be 1 point for €1, or 20 points for every €10. Once your customers start collecting the points, they save them up to reach targets that you set. When a customer reaches that level you have already then established that they are loyal to you, a returning customer, and a frequent spender. You choose what rewards to give, and by using the Retail Rewards
Loyalty System you have ended the dependency on discounts to try and drive up sales. You effectively reinvested in your future growth, creating profitable and lasting relationships with your customers. Generating Repeat Business - The 80/20 Rule In many business activities 80% of the potential value can be achieved from just 20% of the effort, and one
can spend the remaining 80% of effort for relatively little return. Your source of income is your customer base, and 80% of your regular income is attributable to only 20% of your customers. This 20% are your regular, returning customers. The other 80%, conversely, only make up 20% of your income. In terms of the Retail industry this means that the 20% are those who return to you are
making up your repeat business and consequently your business security. The remaining 80% are those who walk in and don’t come back. The Retail Rewards Loyalty System takes this principle and works upon the 80% of walk in customers and through the running of the Loyalty System converts them across and increases the 20% of your core repeat business. Example:-
Wexford Retail analyses its monthly income and finds that it has taken €10,000 from the sale of 1000 products. Further analysis shows that 800 of those products were purchased by only 20% of thecustomers during that period. The other 80%, 200 products, were purchased by walk in clients. In order to increase sales and profitability Wexford Retail decided that it would start a campaign to capture
regulars from the 80% of walk in clients, and get them to become a part of the critical 20%. The table below shows a forecast of the potential sales increase by applying the 80/20 rule: % of Returning Products Sold Revenue (€10 average spend)
Customers
20% 800 8,000
25% 1000 10,000
30% 1200 12,000
40% 1600 16,000
50% 2000 20,000
60% 2400 24,000
70% 2800 28,000
80% 3200 32,000
90% 3600 36,000
100% 4000 40,000
In reality it is unlikely that you will convince 100% of your customers to become part of your core, repeat
business, but the effects of increasing only a small proportion of your customers to keep returning has a massive impact on your sales and revenue. By using the Retail Rewards Loyalty System, you are putting in place an incentive scheme for customers to return to you. By offering rewards every time they visit you, you are creating a compelling reason for them to keep coming back and spending more.
Returning Customers Cost Less Not only do returning customers help your business to grow and become more profitable, they actually cost you less than new ones. What this means is that in order for to attract new customers you have to advertise, and the costs of advertising can spiral upwards and take away considerably from your profits. However, if
you have a customer who returns to you, he or she does not cost you anything. The Retail Rewards Loyalty System works to give your customers the added incentive to return to you, building upon this principle and saving you considerable time, money, and effort upon advertising for new business. Increase Customer Spending By rewarding your customers every time they spend money with you, you are providing them with an
incentive to spend more. By offering bonus points on particular product lines you can make the difference between your customer buying an item on its own or buying an "add on" to go with that item. Using reward points as an incentive to spend you can offer bonuses for particular products in your range, for example those items that represent the greatest profit margins, or those items that are proving to be slow to sell. Customer Referrals Once you have happy customers who visit you regularly they are more likely to refer your business to their family and friends. The impact of customer referrals to any business is one of great consequence in terms of increasing your sales and revenue. If you succeed in holding onto your referrals then your new customers will also refer you to their family and friends, and a referral chain has been set in motion.
The Retail Rewards Loyalty System gives you the opportunity of capitalising on the referral strategy by giving your present customers added incentives for referring their family members and friends to you. You can do this by awarding bonus points for every referral a Loyalty Card Holder makes. Customer Referrals example: - Mrs. Smith is a Loyalty Card Holder at Wexford Retail.
- The manager runs a promotion to Loyalty Card Holders, where if a cardholder refers a family member or a friend the she awards them with 100 bonus points.
- In order to track the referrals accurately she uses a Retail Rewards Referral Card, which she explains to Mrs. Smith when she pays for her products.
- Mrs. Smith then refers her work colleague Joan who visits Wexford Retail and hands over the referral
card when paying for her products.
- The manager rewards Joan by giving her a Loyalty Card and loading it with 100 bonus points.
- The next time Mrs. Smith visits, the manager awards her the 100 bonus points for the referral, and she’s given the opportunity to refer more people in the future.
- The added advantage of the referral chain once it is established is that it does not cost you anything
in advertising for new customers, and with a minimum of effort involved it can create a steady stream of increased profit to your company.
Show Your Customers that You Value Them Whilst being beneficial to your profits and business growth, the Retail Rewards Loyalty System also shows your customers that you value them. Without your customers you would be out of business, and so by maintaining a high level of service you
demonstrate to them that you are thinking about them. The Retail Rewards Loyalty System gives them a real world symbol of their value through a Reward card, and by giving your customers something back for their business, you are showing that you value them and their repeat custom. In return you are fostering loyalty that will ensure that they think of you ahead of your competition. | 
