Thanks to those of you who read last weeks issue and reminded us that the “Park“ retail development is in Hastings, not Napier. In fact we never said it was in Napier, we simply said we had been to Napier. In any event, well read!! Also just another note on The Warehouse at Hastings (The Park). We forgot to mention last week that TWL have changed the red in their branding. It’s certainly very sharp and clean and gives the whole brand a very fresh image.
This gave us an opportunity to give some thought to branding and rewards. It’s common practice in 2011 for Retailers and suppliers to grant rewards for money spent. All companies are right into it. Classic examples are Air New Zealand with “Air Points”, then there’s a number of companies who participate in “fly buys”, American Express gives points and bonus points, and Farmers and Whitcoulls offer points on spend or vouchers, as do Countdown. So is it worth it? Yes it is and it retains customer loyalty. Much depends however on how good the offering is and how long it takes to get a reward or voucher. A typical “dead loss“ could be the AA reward system that seems to offer, at best, a $20 voucher for a year’s purchases. But as the saying goes, something is better than nothing.
Southern Cross medical care received a lot of attention last week for not rewarding long serving customers. With Southern Cross, the older you get the more you pay. As one gets older then it is odds on that your medical needs will increase. So why don’t Southern Cross help this group who have been loyal for over 40 years or so, and give them some level of benefit for their loyalty to the group? Likewise, how many of you have been with a credit card company for a number of years and you are never acknowledged for your loyalty? We are talking about specific rewards, one offs for 10, 20 year loyalty. They just don’t seem to acknowledge one off loyalty!
Then there are the banks. Many of us have been loyal for 10 or 20 years or so. Do they ever send a Christmas card personalised or a bottle of wine for being a long term customer? Not likely, they just charge more for the privilege of banking with them. Why is that? It’s a case of really being remote from the customer, and treating them impersonally. Here at RCG we place great emphasis in keeping people informed and making sure our customers are reminded that we appreciate their loyalty. A brand is built around how your customers respond and what you give them back for being loyal.
Whether it’s the New Zealand Cricket team who repay their fans with a good performance (at last) or The Warehouse who brighten up their store to give their customers a fresh feel, its important to remember as we enter the Christmas season that we would not exist if we didn’t have loyal support.
SHAREWATCH – ON HOLIDAY!
Sharewatch is now on holiday and will be back in the new year.
IN THE PRESS
LOCAL AND INTERNATIONAL MEDIA HIGHLIGHTS 5 – 12 DECEMBER 2011
Topshop hits Australian soil
UK fashion retailer Topshop has at last opened its first Australian store in Chapel Street’s Jam Factory, and clothing prices are low enough to make competitors cringe. The 1300sqm store offers personal shopping, a shoe bar, styling, and encompasses the men’s diffusion brand, Topman. This shop joins a league of 750 Topshop chain stores operated in 32 countries.
(Source: Inside Retailing)
US flagship for NZ designer
New Zealand born fashion designer, Rebecca Taylor who is now based in New York City, recently opened her new Los Angeles store. Located on the legendary Robertson Boulevard, the boutique is Rebecca’s fourth US store.
(Source: Inside Retailing)
Hidden picture theatres get retail transformation
The leftovers of two picture theatres that have been concealed from public view for half a century are part of the city’s latest retail refurbishment, featuring a café, restaurants and soon a hairdressing salon. Tucked away just off Queen St, the Imperial Laneway is a $13 million makeover of the 100-year-old Imperial and Everybody’s buildings fronting Queen St, directly behind the Michael Hill, Louis Vuitton and Gucci retail stores.
(Source: NZ Herald)
Inching closer, the $1b Westgate Centre
The long-planned Westgate Town Centre is a step closer with approval for a $27-million library and town square. Westgate, Massey North and Hobsonville are part of a $1 billion development of Auckland’s northwest that will ultimately accommodate more than 10,000 people and provide business land for much-needed local employment.
(Source: NZ Herald)
{ 3 comments… read them below or add one }
After reading this I phoned a few people for opinions on loyalty cards and they got really passionate about it.
The worst loyalty cards are the ones that offer little to no discount, or reward and just want to track your purchases & use it as a push marketing database – I’ve heard a lot of women lately saying they are throwing these away – particularly Pumpkin Patch, JK Kids, Life Pharmacy, Postie, Sussan. From my quick survey many women have 24 or more of these cards in their purses! And 75% are next to useless, whereas some are excellent and they rave about them. A weak loyalty card does almost the reverse- it annoys the shopper.
Your people need to come South more often. Here in Rolleston (where RCG were involved from the start) The Warehouse used their new colour The Warehouse Red 2010 about 15 months ago here, and yes it looks cleaner and fresher. This store is the model for upgrading throughout New Zealand, and won many of their annual awards, including top store.
Countdown also opened here about 3 weeks ago, with new lighter colours, bilingual signs, lighter flooring and more natural lighting. A warmer, softer approach which “feels” great.
This sub conscious “feeling” factor is always advancing in retail; it would be good to see a paragraph on it in NIB,
Cheers,
Lloyd
With regard to rewarding loyal customers, I have been a customer of Mercury Energy and last week I chose to change power supply companies for my home. I accepted a deal from Energy Online with savings would be around $20 per month. Received a call from Mercury Energy who expressed concern, as I had been a customer for over 10 years and wanted to keep me. They offerd a $250 credit on my power account. I thought this was a good reward and accepted.