Fairfax newspapers today run a piece by Brian Robins questioning the future of the shopper docket in the wake of the sale of Woolworths fuel outlets to BP.
I am glad to see the value of the supermarket shopper docket questioned as it is, in my opinion, of dubious value, offering little or no genuine discount to shoppers.
Regulars here would know that since 2013 I have been using discount vouchers in my newsagency for a whole of business easily understood loyalty offering. The vouchers continue to have a measurable and beneficial impact on the business as they drive shopper engagement during a visit and encourage return visits.
I have countless stories from shoppers telling me that the discount vouchers have changed where they shop, often winning business from the supermarket a few metres from our front entrance.
Shoppers today want real value, value they understand. They wan to be able to access this easily. People are tired of having to sign up for a program, especially if this is their only likely visit to your shop ever or for a while.
In my newsagency, a third of all shoppers are first-time or irregular. This is where discount vouchers work well – they pitch a loyalty offer for greater engagement on the spot. And plenty of then do engage. Just yesterday I saw a $9.99 purchase grow into a total visit spend of $45.00 thanks to a discount voucher. That is $35.00 of good margin business I would not have won had the voucher not been offered.
What the supermarkets and other big business retailers have done is to damage loyalty programs in the minds of shoppers. They have trashed the value of a point. But I am happy with that as I choose to not use points.
I know of hundreds of small business retailers using discount vouchers to differentiate their businesses. Like me, they cite ease of use and ease of understanding as key benefits. With the right settings, the vouchers easily pay for themselves, delivering measurable bottom line benefit.
The best loyalty program a small local retail business can offer is one that promotes that small local retail business. Keep it inside your business rather than inviting purchases outside.
The software from my software company does offer points based loyalty, FlyBys integration. Vii Accumulate integration as well as the discount vouchers offering $$ off the next purchase. So, from a software perspective, I’m flexible. But as a retailer I want the program that works best for me in my situation … and that is discount vouchers. Hence my interest in the Fairfax report today.
FYI, here is an infographic video produced in-house at my software company that simply explains the value of discount vouchers:
Mark,
There is another story here. BP in UK similarly also took up with Marks & Spencer some years ago. They have subsequently opened some 250 M&S convenience stores in the UK attached to BP stations. This is the model Woolworths are about to follow in Australia.
The UK offering is quality and convenience. Discount vouchers are not part of the pitch.
This is more about the supermarket wars than vouchers. Aldi will battle it out with large supermarket outlets. Meanwhile Woolworths will retain share by targeting smaller convenience outlets. Price and convenience will be everything, loyalty schemes are history.
And vouchers do not work in the UK ?
In taking over the Woolworths fuel outlets BP has apparently agreed to continue the Woolworths shopper docket discount fuel for 10 years. Considering how quick large corporations jump in and out of things (quarterly reporting and linked exec bonuses have a lot to answer for) 10 years seems a hell of a long time. I sure wouldn’t be taking bets on it still being in place in 2027.