Twenty two months after we launched Australia’s first magazine loyalty program it continues to power extraordinary growth for us. To the close of business yesterday (June 26) magazine sales were up 16% for the same June period for the same store a year earlier. This is extraordinary growth by any measure. What started in my shop is now offered nationally through the newsXpress retail group. It has also been copied by many individual newsagents and two marketing groups.
The Magazine Club Card I created promotes the whole category. The average redemption costs $5.00. The program itself has a cost of under 2% of total magazine sales so with growth of 16% plus add on sales in other categories we continue to be well ahead.
Customers reward themselves with the free magazine. They often tell us that without the program they would not get the free title chosen. Australian Women’s Weekly is the most redeemed title – customers tell us it’s nice to have the luxury of it without spending anything. In reality, with the way we run our loyalty program, they are spending more on magazines in our store. There’s no doubt we’re pulling some sales out of supermarkets nearby – but not enough for them to notice.
The keys to the success of this loyalty program are: it’s simple; there is no registration; if provides real rewards (and NOT points); we delight in giving away the free magazine.