Reward Your Best Customers & Watch your Sales Grow

By Jane Eckert, Eckert AgriMarketing

Today, there are two primary goals for all retail businesses. The first goal is to encourage customers to shop more frequently. The second goal is to increase customer spending at each visit.

This may sound simple, however, there are many factors involved in bringing this situation about. Let us assume a good location, friendly staff, quality products and fair pricing. To increase business, maybe it’s time to look in a new direction and focus on building loyalty and increasing the customer’s average purchase.

During the 1980’s, the airline industry developed “frequent flier” programs that virtually changed how airline flights were booked. The airlines put an enticing carrot in front of the flying public.…FREE airline tickets in exchange for loyalty. It worked! Many people today have an airline preference and will travel at inconvenient times or make a stop over just to have those miles registered in their mileage accounts.

“Frequency” Promotions are a Bonus to Retailers & Customers Alike

The success of the airline frequent flyer programs spread its use into a variety of retail businesses. (How many frequency cards do you have in your wallet at this time? An inventory of my wallet shows 12 cards from a car wash, bagel shop, coffee club, department store hosiery card, oil & lube shop and more.) The frequency programs are popular with retailers because it is easier and more cost effective to increase sales with a “captured” customer, than it is to find a “new” customer.

Why are these frequency programs also popular with customers? People like to receive something for FREE even if means frequenting the car wash eleven times to get the twelfth wash FREE. Though this offer isn’t as lucrative as the FREE airline ticket, it is, however, more obtainable in the short-run. Those who carry these cards would probably pay for that twelfth car wash, but feel great the day they get it for FREE.

At farm markets, garden centers and pick-your-own operations, frequency cards can also be used very effectively to increase sales. It just requires creativity in developing the offer. In addition to increasing sales, another benefit of a frequency promotion is that the offer can be based on what needs to sell and/or what area of the business needs increased customer loyalty.

“Specific Number” Promotions

These offers can be based on a specific number of purchases or on a certain dollar level of purchase. Examples for a specific number of purchases could be: “Buy Five Gallons of Cider & Get the Sixth FREE.” “ Buy Eleven Monster Muffins & Get the Twelfth FREE.” “ Conquer the Maze Four times - Your next passage is FREE.”

Another example of a promotion to increase the number of purchases was developed by a midwest farm. The farm enjoyed a good daytime business at their ice cream shop but noticed their nighttime business was slow. To motivate people to come for ice cream in the evening, they developed the promotion “Sixth after 6:00 PM FREE.” The frequency card is good for purchase only after 6:00 PM. The result of this promotion was an increase in their nighttime business to the point they had to add staff.

“Level of Purchase” Promotions

Another method for increasing customer loyalty through frequency cards is rewarding a certain dollar level of purchases. For instance, purchases that reach $100.00 are eligible for a reward: garden center could offer
a FREE hanging basket; pick-your-own could offer a FREE half bushel of product or a FREE pie.

The Keys to A Successful Farm Market ‘Frequency’ Promotion

Remember the details in developing these promotions. It will save you headaches later. One detail that is important is to record the rules or qualifiers on the frequency card. These could include expiration date, exclusions or any other qualifications necessary to earn the FREE reward. If the rules are printed on the card, many misunderstandings can be avoided. Once the card is completed, be sure it is returned to you with the back of the card filled out with the customer’s name, address and email address. This is a good source for customer information for future mailings.

Also key to a successful frequency promotion is the involvement of employees in the program. Employees are crucial to the success of this endeavor, as they are the ones offering the card to the customer and insuring that the cards are marked or punched at the time of purchase.

Customer loyalty must be earned and employees are the ones who earn that loyalty by recognizing and thanking customers for their patronage; then by handing out another card to encourage the continuity of that patronage.

Frequency cards are “proven winners” to encourage repeat business and thereby increase sales. Recognize and reward your frequent customers, today, and business will blossom!

Jane Eckert is President of Eckert AgriMarketing, a farm marketing consulting firm. For more information on Eckert AgriMarketing call (314) 862-6288 or subscribe to the direct marketing e-newsletter via www.eckertagrimarketing.com.