Generating More Revenue for Your Supermarket is Easier Than You Think
Eli Langer, CEO, Harvesting Media
There are no two ways about this: In this fast-changing consumers’ world, retailers are constantly enhancing the services they offer. More than ever, customers want supermarkets to personalize specific deals just for them, and on a consistent basis.
That right there is the reason loyalty programs of every kind are exploding, and why retailers are constantly creating targeted marketing strategies from a single, cohesive platform. The best part? Customized emails, personalized text messages, hyper-focused coupon campaigns and the like are relatively simple to launch in 2019.
Smart retailers are aware that customer loyalty programs are highly effective at retaining customers. According to a recent study, 58% of consumers make a purchase at least once a month from stores and brands whose loyalty programs they belong to.
Well-crafted programs have the ability to influence core behaviors in consumers. Furthermore, 50% of customers tend to change their purchasing behavior in order to reach a higher tier within the loyalty program. This means that not only are the customers coming back to shop, but they’re coming back even more than they would due to the rewarding features of the store’s loyalty program.
So how does this impact the supermarket world? A well-designed program allows supermarkets to segment customers, thereby discovering profitable and unprofitable customers. Sharing coupons with customers who are already purchasing the required minimum or items can be counter-productive. On the other hand, developing strategies and deploying coupons to specifically targeted customers is key in generating additional revenue for the store. However, with time continuing to be a limited resource, the number of supermarkets who take advantage of the tools available to them within the loyalty program is low.
Recently, Harvesting Media started working with a client whose main objective was to utilize the multitude of tools within the loyalty platform they had already been using. For years, this client had a relationship with a loyalty program provider, though did not have the time or internal resources to take advantage of the program’s tools. That’s where Harvesting Media stepped in.
After the initial onboarding process, we took the time to schedule an in-person meeting with the loyalty card platform in order to better learn the inner-workings and potential of this platform from all perspectives. The two hour meeting, which Harvesting Media’s entire team joined, was created with a single goal in mind: What could we do on the loyalty side to generate additional revenues for our new client?
Harvesting Media’s team discovered that the loyalty program offered the store access to a collection of available data – comprised of a full list of customer contacts, the number of times customers had redeemed their points for rewards, amount of money spent in accordance with the point system, customer enrollment details, and a great deal of other information.
Over the weeks following the meeting, we began testing various features and campaigns while carefully collecting the results in order to optimize future initiatives.
One of the highlights of this period was the positive feedback from our clients’ customers. The everyday consumer wants to feel taken care of, while having a simple and positive relationship with their neighborhood supermarket. Customers saw the initiatives were benefiting their wallet, and our client was happy that the average basket sizes and store visits started to climb.
Harvesting Media ran one particular campaign that generated unbelievable results. Customers who signed up for the loyalty program received a deal via text message encouraging them to spend a minimum of $100+ on their next visit in order to receive a free cheesecake ahead of a holiday.
Within 5 days, this promotion generated nearly $50,000 in additional sales. Nearly 1 out of every 4 people who received the text redeemed the offer. Additionally, promoting this to customers in a text-message-only campaign encouraged other shoppers to opt-in for similar deals, thereby giving us a new channel with which to reach them. These remarkable results drove our client to encourage Harvesting Media’s team to run similar initiatives on a repeat basis.
Loyalty programs are here to assist both the consumer and the business. Customers want to know what else is “in it for them” to shop, and stores want what will retain and gain customers while getting the most bang for their buck. It’s a pity for a supermarket to invest in a loyalty program while not taking full advantage of the product, or even worse: not invest in a loyalty program at all.
Harvesting Media can help with that. Send the team an email (email@example.com) or give us a call (516-837-0815) and we’ll advise you on the best way to get the right deals in front of your customers at the right time.
Raise basket sizes, increase weekly revenues, and grow your customer base. It’s easier than you think.
About the Author
Eli Langer, CEO, Harvesting Media
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