More than six years in and the discount voucher loyalty program continues to be the best loyalty offering for newsagents. Sales reports show the value of the vouchers at marketing local newsagency businesses to locals as well as to one time only shoppers.
I mention discount vouchers today a reminder to newsagents that in thier newsagency software they have an awesome and proven tool for showing local shopper appreciation and driving local business engagement all at once.
Here are some data points based on an assessment of discount voucher engagement across a cross-section of newsagency businesses:
- 19.5% of all vouchers handed out are redeemed.
- 33% are redeemed the day of handing out.
- 33% are redeemed within a week.
- 33% are redeemed within 28 days.
- 18% of voucher redemption is for items priced at $25+ with a GP of 50%+.
- Magazines benefit the most from voucher use with magazines in 15% of baskets for which a voucher is handed out and magazines in 43% of baskets in which a voucher is redeemed.
- In every business instance assessed, the discount voucher loyalty program delivered a net revenue benefit to the business equal to around sx times the cost of the voucher value redeemed.
This is a business growth opportunity that is easy to setup and run, that genuinely differentiates your business and that provides you with a net financial benefit.
Here is an example of how it works…
I had a shopper who purchased a bag and a bow and received a voucher for $1.00. They used that to purchase two cards and with that they received another $1 voucher. They used that to purchase a $20.00 item for a future birthday.
The business gave away $2.00 for an additional $33.00 in revenue to a customer who is not local and will not be back in the centre any time soon. The additional GP earned was $18.45. I am happy for this to cost $2.00 as banking $16.45 is better than banking nothing.
It is common for one time only or infrequent shoppers to end up with three transactions in a visit because of the vouchers.
Things are moving faster. Shoppers want more and sooner. Social media has educated people to seek instant gratification. Discount vouchers provide this.
Bottom line: this is something you can do for your business and your customers.
It can differentiate your business.