On Saturday I saw another example of how what I call our front-ending loyalty approach benefits us and helps our customers. It’s based on using the Discount Vouchers facility in our software as opposed to the old approach of a VIP, points based, card.
A teenage boy purchased the airfreight edition of Doctor Who magazine for $17.50. This was a destination purchase. From when he entered the shop to returning to the counter with the purchase took no more than 90 seconds. When I gave him the receipt I pointed out the voucher on it offering $1.75 off the next purchase within the next 28 days. As I watched him leave the shop I noticed, mum, dad and another kid waiting for him. He showed them the receipt with the voucher. There was a brief discussion followed by dad coming in with the son. They soon returned to the counter with PC Powerplay Special #2 for $9.20 – after taking off $1.75.
The dad told me they are not regular shoppers in the centre. They stopped in for some suppliers on their way through for a family holiday a couple of hours away. Our front-ending loyalty approach generated an additional purchase for us. Instead of making $4.37 GP on the first magazine, we made $5.36 across two titles. I’d rather do this and have the family talking about what they saved with us than selling just one magazine and not having them talking about us.
Whether newsagents engage with this type of promotion is up to them. I share this story as another example of how this fresh approach to loyalty is working and how it is enabling me to connect with customers in a way that a traditional points based loyalty program cannot.
Footnote: The Discount Vouchers facility is available to anyone using the Tower Systems newsagency software or any software with the same facilities.
Hi Mark,
we joined in on training session for discount vouchers last week with Tower, have been using magazine cards for about 8 months now and have picked up customers from supermarkets and other newsagents – some of these customers are buying wday/nidea on Mondays and T5/Tlife Wednesdays. How do we reward these customers without making purchase amount very low to give a discount voucher? I picked up from the training that $10 would be the minimum, want to keep these customers so what do you suggest, and also are you using 14 or 28 day expiry for newsagents?
Thanks, Jenny
Jenny, the settings are up to you. In my own newsagencies I have set a threshold of $5. Someone buying just one magazine under $5 is not being loyal in the context of this campaign. We’ve not lost any customers.
So Mark do you give a 10% value voucher with all magazine sales $5 and over? And last question do you give discount voucher on a sale that has one redeemed?
Yes, all magazines $5 and over. I did this to ease transition from the magazine club card.
Yes, I offer a voucher on a sale that includes a redemption – as long as it meets the business rules I have established.
Thanks, the transition from the card to this is what I want to get right
I can’t find a heading for trading cards but I have to say that it has been (again) a debacle.
We arranged to have double the amount we had of AFL footy cards last year and we
saw we were selling well and put in a back order (none available for immediate supply) and waited 3 weeks (amid all the lost sales and disappointed kids and parents) and then got some more on Friday.
We ordered more immediately as we were selling them so fast and now I see that there are none available and we are only half way through the season.
I am not blaming GG entirely for this but surely there is some way of ensuring that
this sort of targeted, limited life, product is going to the right people.
I imagine there are agents with boxes of them sitting idle in back rooms because their demographic doesn’t demand these cards but those of us who need them are
so sick of looking as though we don’t know how to order product for our store when we continually sell out even though we have doubled our supplies (after halving the size of our store).
Please GG ASK THE NEWSAGENTS WHO WANTS THEM SO THAT YOUR DISTRIBUTION GOES TO THE RIGHT PEOPLE.
I get sick of being the fall guy for others inefficiency.
June I am sure I said the same thing to last year to you. Buy the cards direct get what you want and better margin. Use whatever you get from GG as back up stock.
June I have 2 boxes of AFL cards sitting unopened under counter (NSW) but can’t return to GG as they keep telling us we can not early return them. How stupid!
Jenny, you’re supposed to return them separately so they can be allocated to those who are waiting for extras. Like June, we have been selling out every year, the back order list is very long, and we never have enough. If you are in VIC, I’ll take them off your hands
Brett I have an alternate supplier for the Red footy cards, but none for the yellow from Gotch. Who is your supplier?
thanks,
Gary
Brett, I think you did tell me that last year but I forgot who it was that I should be
emailing. If you have the info I would love to have it.
Thank you and thankyou Jenny also for
reassuring me that GG get it wrong each
year.
Why send them to an agent that doesn’t
have an AFL demographic.
I must say (in GG’s favour) that they rang
me to tell me they were all gone when I emailed them for more.
That should count for something???
JUST ASK US.
Gary, I would have sent them back, but for months I have received the same email every Monday saying they will not be credited if sent back early – todays email says contact them if I want to send stock back early.
I know that I should call them but I really can’t be bothered waiting on the phone, I will spend as much time as I need chasing extra stock thru GG or publisher, but not for returns. That said if anyone wants them I will post them on.
Quick question regarding discount vouchers, can more than 1 voucher be redeemed on a sale?
Yes.
Thanks, I thought so but not working and can’t see anything odd in settings. Will call Tower.