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How to win customer loyalty without sacrificing profits

Satisfy your customers

Naturally customers want to return to retailers who offer excellent service.  They want a great range of products, well merchandised and supported by good POS, with friendly knowledgeable staff to advise on the right solution.  Once you've got the basics right, your customers will also respond to inspirational presentation and an attractive store ambience.

But what if you want to go further in securing loyalty from your customers?  After all it's been proven that it costs much more to win a new customer than retain an existing one.  You'll want to consider other ways of ensuring your customers return - you might think of a customer loyalty scheme.

Winning customer loyalty

Now value for money is important to your customers, but do you really want to give up a big slice of your profits in order to retain a customer?  So why make your loyalty scheme a discount card?  A customer motivated only by price will just as easily migrate to the store with the best deal on offer that week.  There are other attractive benefits you could offer instead.

Remember that the benefits of your loyalty scheme need to be communicated to your existing customers and the best place to do this is at the check-out.  "Do you have our rewards card?"  A "No" can be turned into an invitation to join: but your staff will need help to quickly explain what's on offer.  The best way to do this is to point to a sign.  The sign remembers ALL the benefits and repeats them correctly every time.  What does the sign offer?

Advance notice of everything
Invitation only events
Free services such as delivery or assembly
Free design services such as "We plan, you plant"
Promotional giveaways
E-mail tips or newsletter
Website coupons or mail order specials

Enhancing customer loyalty

When your customers sign up you can help turn them into advocates of your store by giving that unexpected extra something.  Send them a "thank you" mailer and maybe a small gift such as a tempting new plant (if you are a garden centre).  When they make their first or next purchase reward them with a bounce back benefit. 

And if you offer members' only events, remember to organise them.  Not just a discount evening!  Organise a talk or demonstration, product sampling, free prize draw and some complimentary refreshment.  Consider booking a children's entertainer so the kids come too, allowing time for grown ups to shop in peace before pester power kicks in - cunningly prompted by adjacent Kids Section.

Our occasional Newsletter will include the Titles of any New Articles added to our Top Tips series.

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