Here is a video shot just over a week ago looking at one of the most valuable tools I am finding for growing my newsagency – discount vouchers. This video looks at the April through June data.
To those who say this is a post advertising Tower Systems, I’d note that POS Solutions say they have the same facility in their software.
I don’t care so much which software you use – more that you engage in a smart front-end loyalty facility that is genuinely competitive to the me-too points based programs.
Great video Mark, how is the discount determined? I assume bigger the purchase bigger the discount?
Also with the voucher say if it was $6, is there something that says they have to purchase something to use the discount voucher, or could they grab a couple of things that add up to $6 and get for free?
Thanks
Thanks Matt. On the discount amount -yes, dependent on the purchase size and the rules set by the retailer.
On redemption – there are lost of options for retailers to choose. It could operate either way you describe.
Mat,
Had a customer today, bought an item and got a voucher for $1.30 – took a Courier Mail for free with the voucher.
We find the less asterisks you put around redemption the better. Makes it easier for the customer to understand and easier for the business to manage.
Sure there are going to be a few people that will buy something at the value of the voucher but there will be others who will more than make up for these customers with big purchases well above the value of the voucher.
Would there be potential for a setup along the lines of this.
Spend $10.00 and get 1% off next purchase
Spend $20.00 and get 2% off next purchase and so on and so on. Capping at a certain percentage. Means the customer still has to purchase an item but still gets a reward for their initial purchase.
Just a thought on alternative means of these vouchers.
Michael I think that approach is less likely to be understood by many shoppers. The vouchers are working a treat right now.
Thanks all, sounds great.
Brett, I dont include papers or lotteries.
Lotteries are out but you can claim a paper
Same as Brett but not many redeem on a paper, usually a gift or magazine.
Magazines are the prime redemption item for me, followed by Cards then Gifts
We only preclude TAFMO, phone cards and similar low margin products. If a customer gets a free paper then they have made a previous purchase that has more than covered the paper cost and I want to encourage these customers to return and give us more of their business. With a 20% redemption rate I believe this is working a treat.
I should have mentioned that I am a sub for newspapers, if I could get full commission then I would gladly give away a newspaper but until then………(sigh)
Allan,
I too am a sub for news. The redemption of the paper therefore “costs” you very little. The Gain is the important bit, customers just don’t get this anywhere else.