The Next Step, Customer Centric Retailing


In Monday’s post we discussed some of the basic reasons why having a loyalty makes business sense. Today’s post will detail how you go about setting up a program. I’m using the term “Customer Centric Retailing” because relationship the customer has with your store is an ” at will” relationship. The customer determines when they will shop with you, how often they will shop and when they will end the relationship. Everybody wants loyal customers, but it’s a dubious concept. Even you best customers shop in other stores that offer similar merchandise. So what are the hot buttons that keep customers coming back.

  • Sales people they can trust who recognize them when they come into your store
  • Easy return policies
  • Sales people who are empowered to solve problems on the spot
  • Quick and efficient checkout
  • Effective store signage
  • Pre notification of sales
  • The feeling that their business is appreciated

Price is not one the top reasons that shoppers choose to shop at specialty retailers.

The first steps in establishing a Loyalty program:

  • Create in-store signage and a brochure explaining the program
  • Thoroughly train your cashiers on the program and incentivize them to sign up customers
  • Set your reward levels at realistic points. If possible look at your POS data to determine your average sale and the shopping frequency of your better customers to help you establish the reward levels.
  • Include an application as part of the program brochure. Get as must information as possible: Family members, email address, preferred method of communication.
  • Prove key fobs or a customer card when they join. Most POS system will allow you enter the customers name or phone # if they don’t want to carry a card.
  • Continually monitor your cashiers on a daily basis to be sure they are continuing to sell the program.
  • Put the points they customer has earned to date on their sales receipts if your POS system supports this feature.

I can provide copies of my loyalty program design and implementation document and a sample brochure. You can email me rcalio@cox.net and I’ll send to you immediately.

On Friday I will provide a few additional details on the implementation of a program and how to start using the data you are collecting. The data is the gold of the program and how you use that date will drive the success of the program.