Three-quarters of craft businesses offer loyalty scheme
Following Hobbycraft's announcement that they will be launching a loyalty card this October, ActSmart explore the options for small independent stores to compete with corporate retailers.
Hobbycraft have introduced a number of new initiatives, including a loyalty card, to focus on growing their sales. The loyalty card is due to launch in October and will be rolled out to all customers by Christmas.
Hobbycraft already has a membership scheme with 400,000 members and the loyalty card is being introduced to tie up in-store transactional data with the company's online shopping data.
Members of the loyalty card scheme will be sent personalised offers depending on their shopping habits that will be segmented by their hobbies.
So, how (and why) should smaller retailers try to compete and enter into the loyalty scheme market?
Why customer loyalty?
- 88% of businesses with a loyalty programme are more profitable than their competitors without one
- 64% of customers visit a business with a loyalty programme more frequently
- A 2% increase in customer retention has the same effect as decreasing costs by 10%
- It's 6 to 8 times more expensive to acquire a new customer than it is to retain an existing one
- 65% of customers say they would recommend a business because of a rewards program
Hobbycraft may be the latest retailer to introduce a loyalty scheme, but as a poll by Craft Focus found, over 75% of craft businesses currently offer some form of loyalty scheme.
Whether you're one of the majority who already offers a loyalty scheme, or one of those considering it for your business, The Experts Cards programme can help. Experts cards offer an easy, low cost solution to engage with your audience bringing in new customers as well as encouraging repeat visits to your business.
The Experts Cards are exclusively available to specialist retailers in the hobby and leisure sectors and encompasses a low cost entry point and national consumer promotion.
Increase your sales and encourage customer loyalty with the multi-functional Experts Cards. Design your own card or choose from a range of seasonal and industry specific designs online and you can have your own gift, loyalty, savings or promotional programme in place within weeks - all with one digital card solution.