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Retailers urged to use 'genuine' loyalty schemes
14 Apr 2011

Many retailers could see loyalty schemes as being a great way to attract new business and retain existing consumers.

Indeed, a large number of companies, such as Boots, Tesco and Sainsbury's already have such initiatives in place.

However, in an article for Top Ten Wholesale John Stanley has urged businesses to ensure any programmes they introduce are "genuine".

He warned shops not to discount their core products as 80 per cent of a retail firm's profit comes from the top 20 per cent of its customers.

This means they are not looking for cheaper deals so it is better to offer them other rewards for coming back time and time again.

"I am a great believer in the Thank You Card concept where another retailer gets involved in offering a thank you present to your loyal customers," Mr Stanley continued.

Some of the other high street brands that appear to be realising how a loyalty programme could benefit them are Superdrug and Holland & Barratt, as they are both introducing new initiatives.