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DIY chain reports positive results from loyalty scheme
7 Nov 2011

Retailers in the DIY sector may wish to consider implementing a loyalty scheme after one chain of stores in Australia reported significant success through using the method.

Home Team issued reward smart cards in its outlets all over the country and also collected data about spending from the resulting transactions, Franchise.net.au reports.

It was discovered that loyalty card shoppers spend 30 per cent more in Home Team stores than non-members, while they also generate increased profit margins and more in-shop traffic.

Steven Cooper, owner of one of the outlets that started using the loyalty scheme, said: "Customers started seeing points add up to earn considerable discounts off their bill. Making it so easy for customers to earn rewards has ensured they come back to spend more at our store."

The data from the cards also means promotions can be tailored towards different areas so, for example, there are more discounts off beach furniture at coastal area locations.

Last month, supermarket Waitrose launched its own loyalty scheme for the first time.