Connecting with shoppers goes beyond the sales-point care offer. That is why merchants keep providing purchase-driven loyalty promotions for customers. They say it is their strategy to improve on sales and keep customers. TONIA ‘DIYAN reports
Who says a loyalty programme is not one of the many ways of boosting sales? As a matter of fact, it is the strongest tool for making huge sales. Loyal customers will just keep coming.”
These were the words of Sander Norman, centre manager at a Lagos mall.
Merchants in the metropolis have established some reward programmes, which they say drive patronage.
The outgoing Broll Nigeria head, Mrs Gbadebo Erejuwa, in an interview, spoke of how savvy retailers are defining innovative ways to achieve the benefits most important to their customers.
She said: “While the concept of loyalty is nothing new, we are seeing a significant surge in retailers; particularly those in Lagos investing in loyalty programmes that give them valuable insight into how to better meet customer needs.”
Loyalty programmes (defined as marketing programmes that reward customers with purchase incentives) aren’t just in good supply in major shopping places presently, but are also in high demand by consumers who want to be rewarded for being loyal to particular shops and brands.
Most shopping places in Lagos have now imbibed the trend and have kept it going since its inception in the country. They are aware that if customers are rewarded, they will visit again and again. When The Nation Shopping spoke with some shoppers, 59 per cent claimed that retailer loyalty programmes are offered where they shop and that they are pleased with the development. They pledged their continued patronage to retailers that offer loyalty programmes.
Mr Kenmeth Akunma is an accountant with a firm in Apapa. He said he has been rewarded twice by The Palms mall in Lekki Lagos. “I live in Lekki and often visit The Palms. Early this month; I participated in a promo organised by the mall. I was asked to write my details behind my receipt after making purchases. I did; dropped it in a box positioned inside the mall. I received a text message last week, saying I am one of the lucky winners. I went home with a cash prize of $1,500 and a gift voucher which I used within the mall. The second time was shortly after the mall was opened in 2008. It is an encouraging development” he said.
Imagine a shopping experience that rewards people with a candle light dinner for two (winner + spouse). That was what it was for 10 people who won a romantic dinner in this year’s Ikeja City Mall Shopaholic promotion. It was a consumer-led promotion which ran for a month with the simplest of participatory mechanics. Also, when the mall had its one month shoppers’ promo in October last year, winners went home with cash prizes and shopping vouchers. The grand prize was $1,000 worth of shopping voucher and an all-expense paid trip to Obudu cattle ranch for a couple; second prize was $900 shopping voucher and the third, $600 shopping voucher.
The promotion was for shoppers who bought a minimum of N25,000 worth of items in any of the stores in the mall. Mr Emmanuel Fariogun, the Outdoor Marketing Manager, Harmingham Safari, who sponsored the promo, said the reward system was use to give back to loyal customers. “Apart from giving back to loyal customers; a reward system is used to boost sales” he said.
In February last year, Shoppers were also given N100,000 in the Scavenger Hunt promo in the mall. A Lagos-based marketer, Mr. Anyanwu Collins, won the N100,000 and other gifts. To enter for the promo, customers wrote their names and phone numbers behind their receipts and dropped them in designated boxes placed around the mall. At the end, winners emerged after a draw. The grand prize winner Anyanwu said: “I have N100,000 to spend just for shopping at the Ikeja City Mall. I’m so grateful.”
Other comtestants went home with N15,000 each, branded items and gift certificates from all the participating stores.
Before leaving the mall the day he was presented with his gifts, Anyanwu was spotted shopping at the LG Shop for a big screen TV and a car stereo.
The history of retail loyalty programmes dates back to 1930 with Raleigh cigarette coupons and S&H Green Stamps, according to the book, History of Loyalty Programs. In the book, S&H Green Stamps were most popular in the United States between the 1930s and 1970s. Then, shoppers would receive stamps from cashiers at supermarkets, gas stations, and other retail locations. They were also collected from books.
After stamps were collected they were redeemed for merchandise from local Green Stamps stores or the S&H Idea Book catalogue. Also in 1981, American Airlines introduced the first FFP (frequent flyer program). The goal was to retain American Airline’s most frequent customers by rewarding them for their loyalty. Hotels began to partner with frequent flyer programs after they realised their potential. They started establishing their own frequent reward programs too.
In 1987, the National Rental Car also introduced the first car-rental program in the US called the Emerald Club. This exposed car rentals companies to such programs through partnership with airlines.
