The major supermarkets, several other retailers and non-retail businesses are spending big pitching their loyalty programs already this year.

Their pitches tend to cast their loyalty program as key to unlocking value for shoppers. Value in this context should read as lower prices. It’s a big business code word. Value is bandied about in meetings as if they are doing something good for shoppers when, in fact, it’s marketing fluff to get people thinking they are saving money.

I think their increased focus on loyalty is their response to inflation and consumer sentiment associated with this.

Shoppers are concerned about prices, especially in must-purchase settings. From data we see, with want purchases, discretionary purchases, price is less of a concern.

I have found the best way to pitch value, real and genuine value, is through an easily understood loyalty program that does not compare to the poor-value over-hyped programs from the supermarkets and similar.

Seriously, what is a loyalty point worth anyway?

At my software com pay, Tower Systems, the specialty retail POS software / newsagency software has a good loyalty points facility in it, it’s the discount voucher loyalty program that many hundreds of my own retail customers prefer. I use it in my own shops and have done consistently since it was released 9 years ago.

Each voucher has a dollar value. People understand $$ more than %.

On average, 19% of vouchers are returned and of those returned, a third are redeemed the day of, a third within 7 days and the last third within 28 days.

Guys are more likely to redeem right away whereas girls are more likely to redeem a week or more later.

Discount vouchers work particularly well with habit-focussed shoppers.

In settings where shoppers don’t want the vouchers, there is an opportunity for a local charity connection, which extends the reach of the discount vouchers, better connects the business to a local charity and helps leverage that charity’s community to support you.

My advice, if you’re interested, is to take note that the major retailers are pitching loyalty more this year already. Consider what you can do in your business to engage with shopper interest in value.

Now for a sales pitch:

Find out more:

• www.towersystems.com.au
• 1300 662 957
• sales@towersystems.com.au

Thanks for reading.

Tower serves 3,000+ local specialty retailers across a range of product channels and are grateful to serve beyond our POS software, with retail advice and inspiration – to help local small business retailers compete and enjoy their businesses more. This is where local value can be nurtured and shared.

We continue to see Covid related bloat in parts of the supply chain, especially where products are sourced from China and have been unable to easily ship over the last 2 years.

From what I have seen, it appears most common with lower end gift and homewares products, from lesser known suppliers.

I think it’s important to be aware when considering product purchases – to ensure you’re looking at current design rather than products from two years ago.

I’ve heard from several suppliers recently that new newsagents are not aware of electronic invoices. While some handle their magazines with electronic invoices, apparently they say they did not realise they were electronic invoices and did therefore not think of this for other supplier situations.

This is a basic problem in the channel, for newsagents and suppliers.

There needs to be a co-ordinated effort to get more newsagents online with electronic invoices from the many suppliers that offer them.

Through my own newsagency POS software company, Tower Systems, we pitch it regularly, offer free training, offer a free stock file and invoice check service as well as working with suppliers to get them on board. It’s a time consuming process to bring a supplier on board. We work with their tech people, account management people, accounting and others as there is often a misunderstanding as to what is involved and the value for their business.

My newsXpress business is involved, too, as it tends to work with newsagents who are not traditional suppliers to our channel

I think one area where we (newsagents, software companies, newsagent suppliers and newsagents) need better engagement is when newsagents sell – they need to do a better job of training incoming newsagents.

Every time you type details of a new stock item into your computer system or manually process an invoice for stock you have received, it costs labour time and could result in data mistakes, which could lead to bad decisions.

Electronic invoices save time, and they cut mistakes, they help newsagents make more money.

CAEM's complementary Newspaper, Magazine and Snack Displays are perfect additions for store shelving within newsagents, or for anyone wanting to display literature (for example, in estate agents or travel agents): https://t.co/M4IwRDZiOR #retaildisplay #retaildesign

— CAEM Group (@wwwcaemnet) January 9, 2023

Individually, these strategies work, in any retail business. Done together, and consistently, the profit value compounds. I say compounds as each of the three strategies feeds into the other.

• Chase new customers. Serving the same customers is likely to give you the same results. Every day, do something to attract new customers through: a brilliant and different window display, engaging social media posts, a community group connection, a club member fundraiser.
• Maximise gross profit percentage. Buy at the best price you can. Be engaged in how you price what you sell. Every cent matters. Rounding up to .99 is a good start. Pricing based on the value you offer is more important than trying to compete with the cheapest. You’re worth it.
• Drive a deeper basket. Be smart about what you place where in the shop in pursuit of people buying more. At you’re counter and at the busiest points in the shop, make adding things to the purchase easy. Look at what people buy with what and use that to guide product placement. Use smart loyalty tools to disrupt shopper behaviour.

It’s easy in local small business retail to get caught doing stuff when what really matters is those things you can do ton drive profit, which increases the value, today and tomorrow, of your business.