A solid loyalty program has been proven to increase sales and drive customer retention. So it is interesting for retailers to see what the best are doing.
Roy Morgan research has released its latest research here.
71% of the Australian population are members of at least one rewards program. The most popular rewards program is Woolworths Rewards, which has 49% of all Australians 14 or over of which 78.2% of all shoppers in Woolworths/Safeway use it.
This rewards program is very simple and easy to use. For every dollar you buy, you get one point, when you get 2,000 points, you get a $10 discount on your next shopping trip. Based on a gross margin of 30%, it works out to about 1.2% cost/sales assuming that all of these points are used, which is within the industry average of what the cost ratio should be of a rewards program. As a rule, most reward programs are looking for about 30% of all customers to join although I have seen figures deemed acceptable as low as 10% acceptable.
This program is very easy to set up with our software and it seamlessly integrates into our point-of-sale system.
Most importantly it gives you a user base to market too and our POS system has a large section for doing such loyalty marketing which you will find in register reports marked with a red arrow.
Once you click on it, you will see the following.
Now you can select the special categories you can set up, for example, here it is lotto mail outs, Facebook's clients etc.
Now you can compose say an email to these people advising people on lotto mailouts if say a big draw is going to be held this week. Actually, today would be a good day to have sent out a lotto mailout as a black moon is coming and its an important sign astrologically.
The cost to you is nothing, and if anyone comes in, it has paid.
