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Many retailers complain about how tough the market is. But amazingly, they continue to market themselves exactly the same way as everyone else: advertising, catalogues and discounts (A, C and D).
If that sounds like what you’re doing and it’s not working - or not working well enough - maybe it’s time to try some new marketing strategies.
Following are eight strategies that:
* You can implement now
* Will increase customer visits
* Encourage higher value purchases and re-purchase
* Can be used whether you have one store or 100 stores
* But probably the greatest advantage of the following strategies is that your competitors are probably not using any if not all of them.
The ‘Fly Buys’ loyalty program accounts for 35 per cent of Shell’s total sales. Those customers earn one Fly Buy point for every $5 they spend. How much does that one Fly Buy point cost Shell? A microscopic 0.2c.
Loyalty programs work. The secret is doing the numbers and ensuring you can pay for the rewards out of the incremental sales the program will generate.
Your program can be large or as simple as ‘Buy 6 XXX and get the 7th XXX free’. Either way, a loyalty program offering appealing rewards will keep customers coming back to your store, even if your competitors are offering discounts and you’re not. Remember, Shell is not known as the cheapest petrol retailer in Australia.
The National Office for Information Technology (NOIE) ranks Australia fifth in the world behind some of the most connected and advanced Information Economies – the US, Canada, Sweden and Hong Kong. A massive 89% of Australians aged 16 or over have internet access at home or at work and 89% of businesses with 10 or more employees are connected to the internet in 2003. Right now, 65% of us over the age of 16 also use a mobile phone. We’re communicating like rabbits (or is that MICE)!
Despite these phenomenal numbers, many organisations in Australia today are still undertaking old style analogue ‘hit & miss’ (but mainly miss) mass-mail campaigns. They’re sending out slick messages to as many people as they can and hoping like hell for a 1.75% response rate in order to justify the expense of it all.
Your store is surrounded by 1,000s of potential customers who might not even know you exist. These customers work in offices and factories in nearby streets and suburbs and, as such, are prime prospects.
All you need to do is identify the employers of the greatest number of people and contact the HR departments or social clubs of those companies.
Propose a special offer specifically for their employees and create a printed value card that can be given to each individual with your logo as well as their employer’s. Such micro-marketing programmes are uncommon and that means big potential for those who give it a run.
Non-profit organisations – schools, churches, charities etc – are always on the lookout for ways to make money. Using this strategy, you can help them do that and at the same time drive customers into your store.
Here’s one way it can work. You create a ‘currency’ redeemable only in your store that volunteers selling raffle tickets hand out as an additional incentive for people to buy. So not only does the raffle ticket buyer give to a good cause and enter the running to win the big prize, but they also get say, $5 guaranteed off their next purchase in your store.
The non-profit organisation makes money, the buyer feels good and can save money when he or she next shops in your store, and you have helped a good cause and created a potential new customer.
Recently, an independent petrol station operator in Melbourne advertised petrol at dramatically lower prices than anyone else. While it was meant as a protest, it had customers queuing for kilometres and attracted national publicity.
What a great way to introduce customers to your business. No matter what your business, imagine running an event for a very limited time where you offer a key product or service at a ridiculously low price. It’s like a ‘red spot special’ but to such an extreme that you can potentially attract lots of (free) PR.
The single focus you must have is to give those customers – many of who may have never been into your store before – compelling reasons to come back. Repeat business is the end game of this strategy, otherwise all you’re doing is throwing away money.
If such an idea sounds expensive, consider how much you’re already spending on A, C and D with a hope and a prayer that it works.
Customers who walk out of your store without you having captured their name, address, email address, shopping preferences and other personal information cost you more in lost sales than any shoplifter could.
Simple database programs allow retailers of all sizes to capture data and then send out promotional emails, letters and phone calls to entice customers to come back. Plus, the more you find out about that customer, the better you can target your promotional
messages to them.
It’s not as easy as A, C and D but it’s a darn sight more cost-effective and enables you to create a dialogue with your customers. And that’s an incredible advantage for any retailer.
Before supermarkets and shopping malls were invented, corner stores developed loyalty via personal customer relationships. When was the last time that you felt good about going into a store? Or you felt they really cared about you?
Small, personal touches can make a huge difference for two reasons. Firstly, in their zeal to simplify their service, most retailers have done away with personal touches so using them will make you stand out. Secondly, people like doing business with people they like.
So what can those personal touches be? How about offering a valet service if you have a large car park; if your customers are 18 - 24 allow them to send SMS messages to their friends from your specially configured PC.
All you need to do is ask your customers what’s important to them and what they’d love to get from you. Then as long as it’s within your budget – and funnily enough, most of the ideas will be cheaper than an ad campaign or creating a catalogue – go ahead, make it happen. Your profits will reflect your customers’ approval and they will soon spread the word.
You won’t hear some of the ideas in this report being proposed by traditional ad agencies or marketing companies. Being able to create and implement these strategies needs a Direct to Customer mindset and focus that Tick Yes has.
We can help you help your better serve your customers and local community by creating effective direct mail, loyalty programmes, email marketing, consumer promotions and in store POS. And make you a fortune in the process.