I’ve got the rules on my desk for ten difference loyalty schemes from major retailers and all are poor at best in terms of rewards. I’ve compared these ten schemes with ten from local small businesses and the small business loyalty programs are better by far. It is like comparing chalk with cheese. The small business schemes are simple to use and quick to reward. The national chain schemes require you to complete details and always use their plastic card with your purchase. (Of course this so they can find out your purchasing patterns.) The small business schemes like the newsagency magazine club card, the coffee shop card, the card shop card and the bakery buy 5 and get the 6th free are all about genuine reward.
I would like to see the state governments introduce regulations requiring disclosure of the real value of each point accrued at the time of purchase so the consumer can know how much their business is valued.
I know that if I spend $100 at one major department store I will accrue around 50 cents value in points for the sale. I know that if I spend the same amount on coffee I’ll get $15.00 worth of free coffees. If I spend $100 on magazines at my own retail business I’ll get to choose two magazines to the value of $10.00 each – that’s $20.00 value from a $100 spend.
The lack of regulation is allowing the bigger businesses to get away with what I’d call loyalty theft. Small business groups ought to consider campaigns around how much better value of their loyalty programs.