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Why Loyalty

What are the benefits of a local loyalty scheme?
What would the perfect loyalty scheme look like?
And it’s easier than you might think
Avoid discounting – discounting destroys loyalty

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Shoppers Shoppers get actively rewarded for shopping locally
Shoppers feel they’re joining a special club
And it makes shopping locally fun!
Local Businesses Increases shopping frequency and spending
And the more frequently we shop, the more we spend on each visit!
Rapid take-up generates even more trade
Partnerships Helps local businesses – and your own town – thrive
Helps create a true businesses community
Shoppers start to visit other businesses in the scheme
Councils Inexpensive, particularly when compared with capital with projects
The council is seen to be helping local business
And it’s a wonderful news story


Shoppers Attractive, interesting, intriguing rewards
Clearly worth joining
Fun
Something I’d want to tell my friends about
Local Businesses Affordable and improves trade
Isn’t based on discounting
Points only redeemable in the business that granted them
Shouldn’t need a PC, WiFi or even a phone signal
Local loyalty members known to spend more
Partnerships Inclusive, self-funding, simple, no admin
Priced and designed so every business can join
Truly self-funding
No hidden admin costs
Easy to implement
Councils Minimal launch funding, lots of good PR
An effective local loyalty scheme should need minimal launch funding
And it musn’t need any follow-on funding
Every type of business must be able to join
Must be inclusive, and must also benefit people with no bank account


Establishing a successful local loyalty scheme is simple, but there are few important principles

Loyalty isn’t marketing

Effective loyalty schemes promise a future reward, but only if the customer comes back

So local loyalty isn’t a marketing tool – it’s a customer retention tool

Marketing = Attract new customers

Tools and techniques include time-limited promotions and social media

Local loyalty = Keep them coming back

Local loyalty schemes focus on bringing customers back and run alongside local marketing

Organisation is key

Owners must be able to participate, without impacting time managing their own businesses

We can offer some real-world experience and support in this area


The local loyalty schemes need to be financially self-sustaining

So we also provide meaningful financial support, as well as free support and consultancy

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Shoppers Makes shoppers more sensitive to price
Tells shoppers to go to wherever is cheapest
Can make customers feel foolish, for ever having paid full price
So it makes customers more fickle and less loyal
Local Businesses Forces local businesses to market themselves based on low prices
Can result in far fewer sales being made at normal price
Lost revenue is rarely recouped through increases in sales
So often reduces takings
Partnerships Cheap to implement, but dangerous
And many businesses would resist marketing themselves in this way
Businesses will quickly see it reduces takings
So a discount-based scheme has failure designed-in
Councils Drives shopping away from the town
There’s little benefit in supporting something that’s doomed to fail
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