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News from Tower Systems about locally made POS software for specialty local retailers.

Customer loyalty programs: small business versus big business


In my retail newsagency customers who purchase 11 magazines in eight weeks can choose a magazine up to the value of $10.00 free of charge. The average magazine purchase is $4.50 and the average redemption $5.00. This equates to a 10% discount.

Over at Coles, if you purchase $49.50 worth of magazines, you accrue around 10 FlyBys points. FlyBys points can be redeemed for gift vouchers. You need 13,500 points for a $100 voucher. That equals 675 points for my free $5.00 magazine. So, I need to spend $3,375.00 to get a free $5.00 magazine.

Now from time to time FlyBys offers bonus points but a check of the Coles website and considering the range of product in store, current bonus items account for less than 1% of the products they carry.

Which deal is better? The Magazine Club Card I offer in my small business newsagency or the FlyBys offer from Coles?

I’ll let you decide.

State Governments ought to regulate to force businesses to prominently publish in store and on receipts a present value for each point accrued.

Small businesses, like mine, ought to promote the benefit of their loyalty campaigns by directly comparing the reward per dollar with the likes of FlyBys. While occasional bonus offerings make FlyBys points more attractive, this is not happening enough. Most small business loyalty programs I have seen reward sooner and with more value than their big business counterparts.

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By Mark