Shopper loyalty programs seem to be springing up almost daily, as more and more online and offline stores join this rather crowded bandwagon to create loyal customers. But most are very limited, as very few are universally accepted in many outlets. You can usually only use a Tesco ClubCard at one of the thousands of Tesco stores across the UK. The boots have their own; Marks and Spencer has theirs, as does Morrisons, Waitrose, Iceland, and hundreds of other well-known retailers.
Sainsbury’s has adopted the Nectar card as its Loyalty programme, and the beauty of the Nectar card is that you can use it at many other retailers, as well as Sainsbury’s, so you can rack up rewards points pretty 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:
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They don’t encourage members to recruit new people, but if they do, they don’t reward them properly. Loyalty is most powerful when combined with the most successful marketing system in the world: network marketing or ‘word of mouth’.
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They fail to introduce new customers to the business. This remains an expensive, unreliable, and expensive up-front task for “Pay and Pray” advertising.
Recruitment of new members. Let’s take the topic of having a member recruit new members. If you join a Loyalty program and find that without spending money, or without having to buy any item or service like a specific utility company that you really don’t want, in addition to your ‘already spent’ money, you find that you are beginning to accumulate a large amount of Shopping Rewards Points (SRP). How easy would it be for you to introduce your friends to join you? And if he was rewarded by getting a small share of all his spending within his group of Loyal Traders, then surely that must give him a lot of incentive to do just that. But if this little reward were just 10 or 20 pence, most people wouldn’t cross the road to pick up a 10p coin, but millions of us regularly present a loyalty card every time we shop, hoping to get a few few cents. in reward points. Is it worth the hassle?
Consider this. Many older people (perhaps in their mid-eighties) will keep all their dimes and 20p coins in a tin, ready for the Christmas shopping bonanza. They find it really exciting when the can was nearly 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: lots of ‘just 10 pence’ as your team grows is just as exciting.
So let us now compare two Loyalty systems: the long-standing Nectar Card system with over 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 are going to use the Idea Rewards card for comparison.
Just nectar. 05% buyer reward points. 100 nectar points (worth £0.005 each) = 50 pence.
IdeaRewards. 2.5% Buyer Reward Points. 2.5 SRP, valued at £1 each = £2.50 (5 times as much)
PLUS 1.25% Loyalty Program Points from each Member in your downline. Value = £1.25 * Numbers of team members.
PLUS any Nectar card points if you are a member of both.
And this bonus is paid up to 7 levels deep.
So if you introduce 5 members and they introduce 5 each, and they introduce 5 each…
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Is there a limit to the amount of 10p that can be won? No!
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Can you benefit from the introduction of a small business, with dozens of loyal customers? Yes!
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Can you build a team of thousands of members in a year? Yes!
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Can you benefit from up to SEVEN LEVELS of recommenders? Yes!
Support from the High Street community.
This is where Nectar gets left behind in the dust, along with most other Loyalty programs. With Loyalty programs like Ideas, having a network marketing, or associated ‘word of mouth’ facility means that for many independent retailers, on high streets across the UK, where entire communities are in danger of collapsing Now there is a proven solution that can not only help these independent businesses increase their turnover and profitability, improve the loyalty of their existing customers, and also have the ability to recruit new loyal customers. And this can be done without the massive cost of direct marketing advertising (Pay and Pray). By having these old and new customers become members of the local business loyalty program, the business can also benefit from the buying habits of these members.
When members spend elsewhere within the same Loyalty program, such as big box stores like Sainsbury’s, Boots, B&Q, etc., and even when shopping online, the small business will find that a new and separate passive income is created as that these members buy spend elsewhere. (even in competitor stores).
On top of all that, as the network of independent small businesses expands, so will the ability for every Loyalty member to shop at any of these outlets and get INSTANT GRATIFICATION, as any of these small businesses that also are Loyalty merchants will have the ability to allow shoppers the option of money or rewards points (or a combination) to pay for their purchases.
Therefore, by identifying a loyalty program ‘ON STEROIDS’ as defined above, even if each transaction only generates a few cents in loyalty rewards, the overall benefit will likely be substantial, not just for shoppers, but for the organization as well. independent small business. and communities as a whole across the UK.
You may have to change your shopping habits slightly here, but remember, convenience shopping will give you short-term gratification, but opportunity shopping, even if you have to change your shopping habits slightly, will greatly improve your quality of lifestyle. .