Shopper loyalty programs seem to be popping up almost daily, as more and more online and offline stores jump on this busy wagon to create loyal customers. But most are very limited, as very few of them are universally accepted at many outlets. Typically, you can only use a Tesco ClubCard at one of thousands of Tesco stores in the UK. The boots have their own; Marks and Spencer have theirs, as do Morrisons, Waitrose, Iceland, and hundreds of other well-known retailers.
Sainsbury’s has embraced the Nectar card as its loyalty program, and the beauty of the Nectar card is that you can use it at many other retailers, as well as Sainsbury’s, so the accumulation of reward points can happen quite quickly. (Sainsbury’s does not own Nectar. The owners are the Canadian company AIMIA)
But probably 99% or more of loyalty programs are missing two vital ingredients:
- They fail to encourage members to recruit new people, but if they do, they do not reward them properly. Loyalty is most powerful when combined with the world’s most successful marketing system: network marketing or “word of mouth.”
- They fail to introduce new customers to the business. This continues to be a task for the expensive, unreliable and expensive initial “pay and pray” advertising.
Recruitment of new members. Let’s take the issue of getting a member to recruit new members. If you join a loyalty program and find that without spending money, or without having to buy some item or service like a specific utility company that you really don’t want, in addition to your ‘already spent’ money, you realize that You are starting to accumulate a large number of Shopping Rewards Points (SRP). How easy would it be for you to introduce your friends to join you? And if you were rewarded by getting a small portion of all your spending within your loyalty merchant pool, then surely that should give you a lot of incentive to do just that. But if this little reward were just, say, 10 or 20 pence, most people wouldn’t cross the street to pick up a 10 pence coin, but millions of us regularly present a loyalty card every time we shop, hoping to get a few pennies. in reward points. Is it worth the hassle?
Consider this. Many seniors (perhaps in their mid-eighties) will keep all their nickels and dimes in a can, ready for the Christmas shopping bonanza. They find it really exciting when the can was almost full, and they had the pleasure of counting around £ 200 worth of shrapnel!
But here’s the idea behind a loyalty program that also continually encourages and rewards its members when they get more people to join their programs: many ‘just 10 pence’ as your team grows is just as exciting.
So, let’s now compare two loyalty systems: the long-standing Nectar Card system with more than 20 million members, and the Idea Rewards card, still in its first year, but fully embracing the concept of network marketing or word of mouth. mouth. In the following comparison, both buyers have a Nectar card; They both spend £ 100 at the store, but only one is also a member of one of these network marketing based companies. Here, we will use the Idea Rewards card to compare.
Just nectar. 05% Buyer Reward Points. 100 Nectar Points (valued at £ 0.005 each) = 50p.
Idea rewards. 2.5% reward points for buyers. 2.5 SRP, valued at £ 1 each = £ 2.50 (5 times more)
PLUS 1.25% Loyalty Program Points from every Member in your downline. Value = £ 1.25 * Number of team members.
PLUS any point on the Nectar card if you are a member of both.
And this bonus is paid up to 7 levels deep.
So if you feature 5 members and they feature 5 each, and they feature 5 each …
- Is there a limit on the amount of 10 pence that can be won? Do not!
- Can You Benefit From Introducing A Small Business With Dozens Of Loyal Customers? Yes!
- Can you build a team of thousands of members in one year? Yes!
- Can you benefit from up to SEVEN LEVELS of recommenders? Yes!
High Street Community Support.
This is where Nectar is left in the dust, along with most of the other loyalty programs. With loyalty programs like Ideas, having a network marketing or ‘word of mouth’ facility associated means that for many independent retailers, on High Streets across the UK, where entire communities are in danger of collapse, now There is a proven solution that can not only help these independent companies increase their turnover and profitability, improve the loyalty of their existing customers, and also have the ability to recruit loyal new customers. And this can be done without the massive cost of direct marketing advertising (Pay and Pray). By having the ability for these new and old customers to become members of the local business loyalty program, the business can also benefit from the purchasing habits of these members.
When members spend elsewhere within the same loyalty program, such as large stores such as Sainsbury’s, Boots, B&Q, etc., and even when shopping online, the small business will find that new and independent passive income is created as they these members buy spend elsewhere. (even in competitive stores).
On top of all that, as the network of independent small businesses expands, so will the ability for each Loyalty member to shop at any of these outlets and earn an INSTANT THANK YOU, as any of these small businesses that They are also Loyalty merchants, you will have the ability to allow shoppers to choose between money or reward points (or a combination) to pay for their purchases.
So, by identifying a Loyalty Program ‘IN STEROIDS’ as defined above, even if each transaction only generates a few pennies in loyalty rewards, the overall benefit will likely be substantial, not just for shoppers, but for the small independent company. and communities as a whole across the UK.
You may have to change your shopping habits slightly here, but remember, shopping for convenience will give you short-term gratification, but buying opportunities, even if you have to change your shopping habits slightly, will greatly improve your quality of lifestyle.