Every couple of days I hear new stories about how shoppers are engaging with the Discount Vouchers we are using in place of the old VIP card points-based loyalty program. Each story shows changed customer behaviour. Here are two stories from the last couple of weeks:
A chap purchased a bunch of AFL card packs and a Discount Voucher was printed on the receipt offering cash off his next purchase. He said he’d be back as a result of this. This chap was not a regular. A week later he was back and purchased more cards, using the voucher for a discount. He received another voucher and said he’d be back again. What started as a once off purchase is now regular business for us.
A first time customer purchased three greeting cards and received a voucher offering $1.50 off their next purchase. They explained they don’t live in the area. Our brilliant sales expert asked if they had a printer at home – they did so we showed them our deal on ink. They bought two cartridges and received an additional $2.50 off the already good price. They received another voucher, for $3.50. They bought a door stopper for $29.95 and got $3.50 off. No more they said with a smile. They gave us the voucher from the door stopper to give to someone else.
These true stories show how front-ending loyalty can change shopper behaviour in an immediate and valuable way. Shoppers love the transparency of the Discount Vouchers. As a retailer I love the incremental sales.
The newsagency business model needs changing at the store level and nationally. The nature of our businesses and the channel is such that such wholesale change is unlikely. The Discount Vouchers offer a practical way for us to change at the store level, to play outside the field of the old and less trusted VIP and points based loyalty programs.