Loyalty programs for furniture retailers
Lawrence Galoni
My company specializes in direct marketing for retailers. Recently, we
have been approached by furniture retailers to develop a frequency
program similar to Airmiles and Club Z.
The big challenge in developing this type of program for the furniture
industry is the low frequency of purchase. I would appreciate any
thoughts on a program that builds loyalty either through a communication
program or, a frequent "flyer" type program.
Or, do you know of any good books on loyalty programs for retailers? An
excellent one I've read so far is from Brian Wolf - "Customer Specific
Marketing". Only problem is, the book focuses on food retail and more
importantly, on retail with traditionaly high purchase frequency.
Thank you,
Lawrence Galoni
Direct Access Marketing - lga...@netinc.ca
John W. Taylor
Lawrence Galoni wrote:
: My company specializes in direct marketing for retailers. Recently, we
Yes, you are right, loyalty programs work better when there is a
continuous relationship or frequent transactions. Hence their success
in credit cards, airlines, banks, etc.
But don't give up hope. Get a copy of The Loyalty Effect by Frederick
F. Reichheld, published by Harvard Business School Press. He runs the
loyalty practice at Bain & Company. It provides an excellent
explanation of how loyalty relates to retention, profits, etc. It won't
have your program outline, but it will definitely be worth your time.
Incidently, I have no connection with the author or publisher.
--
TAYLOR CONSULTING GROUP
Your Market Research Partner
John W. Taylor
tayl...@callamer.com
805.595.9427要oice ~ 805.595.9428庸ax
John Gerits
Lawrence Galoni <lga...@netinc.ca>, wrote:
>My company specializes in direct marketing for retailers. Recently, we
>have been approached by furniture retailers to develop a frequency
>program similar to Airmiles and Club Z.
>The big challenge in developing this type of program for the furniture
>industry is the low frequency of purchase. I would appreciate any
>thoughts on a program that builds loyalty either through a communication
>program or, a frequent "flyer" type program.
For the furniture industry, why not give *nice* personalized coupons with a
purchase? Depending on the price range, maybe something like a gold $100, silver
$50, Bronze $25. Further, make it transferable, thus a friend of a customer can
receive the discount. As a bonus to the customer, he/she receives the same
discount.
As for something like Airmiles, Airmiles is not just for specific retail
sectors, so why not look to expand any loyalty program (homesteader-miles,
mover-miles) to related sectors; major appliances, home furnishings, home
improvement -remodeling, home maintenance. If there are any new home
developments, see about enrolling these companies so that anyone taking a tour
will receive X number of miles (or coupon), buying a home XX number of miles (or
coupons). Also enroll apartment complexes
Hope this helps your thinking!
Al Hulaton
In article <333cad6f...@mbmm.gerits.nl>, lga...@netinc.ca says...
>My company specializes in direct marketing for retailers. Recently, we
>have been approached by furniture retailers to develop a frequency
>program similar to Airmiles and Club Z.
>The big challenge in developing this type of program for the furniture
>industry is the low frequency of purchase. I would appreciate any
>thoughts on a program that builds loyalty either through a communication
>program or, a frequent "flyer" type program.
Certainly mail to your customers with a concrete offer AT LEAST once a
quarter (with furniture though, maybe once a quarter is enough.) But
that goes without saying. Sure it's not a loyalty program like Delta
miles, but at least you're keeping in touch.
For all the stuff I bought retail last year, I don't recall a single
"thank you" from anyone. Or a newsletter. Or a "we miss you" letter.
Such simple things. Dumb.
No I take that back; I did get a postcard. From my dentist. Gotta
wonder what his ROI is on mailing those things out are... (and yes my
teeth were fine.)
>Or, do you know of any good books on loyalty programs for retailers? An
>excellent one I've read so far is from Brian Wolf - "Customer Specific
>Marketing". Only problem is, the book focuses on food retail and more
>importantly, on retail with traditionaly high purchase frequency.
Check out "the guerrilla marketing handbook" by Levinson. The
introduction relates the experience of Jordan's Furniture, Boston MA.
They started in 1973 with sales of $500,000 and at the time of writing
was up to $100,000,000 a year. They've got free car washes for customers
that pick up their own furniture, a snack and t-shirt shop (proceeds go
to charity), and a $3 million amuesement ride out back.
Sounds more like a Chuck E. Cheese pizza joint. But if you think I'd
complain if I did $100 mil a year in revenue, you're crazy.
Now I now that's not a loyalty program like a frequent flyer deal, but
you can bet that people that buy there and are impressed with the service
will buy again. I guess that's more loyalty-thru-excellence.
This is a problem with us marketers; our client sees something United
Airlines is doing and wants to do the same thing. But sometimes things
don't adapt well. I agree frequent buyer programs work great for
high-frequency purchases, but not always for infrequent purchases.
Does your client sell anything at high frequencies? Can they? Or
perhaps a frequent buyer tie-in with another related non-competing
company. Or a "trade in your miles for dollars off" co-op with a
regional airline. Just ideas.
Hope this helps. At least read the chapter I talked about above and tell
your client about it.
aloha!
al hulaton
[Al, glad to see you back! Watch those m&ms, they're addictive. Wouldn't want to
see you in m&mer's anonymous :-) -JG]
MatthewR3
: My company specializes in direct marketing for retailers. Recently, we
: have been approached by furniture retailers to develop a frequency
: program similar to Airmiles and Club Z.
: The big challenge in developing this type of program for the furniture
: industry is the low frequency of purchase. I would appreciate any
: thoughts on a program that builds loyalty either through a communication
: program or, a frequent "flyer" type program.
What I've seen in practice is a special notice mailed to previous
buyers, promoting a "private sale", exclusively for invited "special XYZ
customers."
Something like "because you purchased x amount of furniture from us in the
past so many month, we wish to reward our most valuable customers with
extra-special savings during this very exclusive event."
Marketing to increase the loyalty of furniture-buyers is also
addressed in the new book, "Predatory Marketing," which is in book stores
now.
Matthew
Phillip Michaelson
Lawrence Galoni <lga...@netinc.ca> wrote:
:My company specializes in direct marketing for retailers. Recently, we
:have been approached by furniture retailers to develop a frequency
:program similar to Airmiles and Club Z.
:The big challenge in developing this type of program for the furniture
:industry is the low frequency of purchase. I would appreciate any
:thoughts on a program that builds loyalty either through a communication
:program or, a frequent "flyer" type program.
:Or, do you know of any good books on loyalty programs for retailers? An
:excellent one I've read so far is from Brian Wolf - "Customer Specific
:Marketing". Only problem is, the book focuses on food retail and more
:importantly, on retail with traditionaly high purchase frequency.
A excellent bood on building retail customer loyalty is "Up The
Loyalty Ladder" by Murray Raphel and Neil Raphel (1995).
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The Michaelson Company
customer loyalty builders
for free information about increasing your customers' loyalty
please visit our website at http://www.increase-loyalty.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Jim Dompier
Al Hulaton wrote:
: Certainly mail to your customers with a concrete offer AT LEAST once a
: quarter (with furniture though, maybe once a quarter is enough.) But
: that goes without saying. Sure it's not a loyalty program like Delta
: miles, but at least you're keeping in touch.
I wonder what kind of loyalty furniture stores expect to get, when they
are constantly "Going Out Of Business" or "Were Closing Our Doors". <G>!
--
Jim Dompier
IslandSoft
isle...@lava.net
http://www.lava.net/~islesoft/
Russ
You need to look at this through the eyes of the customer and then the
answer will come to you.
I have done this for a paying customer so I can't, in good conscious,
give it to you for free. Good luck.
<G>
Russ
John Block
Lawrence Galoni <lga...@netinc.ca>, wrote:
Hi Lawrence,
>The big challenge in developing this type of program for the furniture
>industry is the low frequency of purchase. I would appreciate any
>thoughts on a program that builds loyalty either through a communication
>program or, a frequent "flyer" type program.
Another way to enhance loyalty is to make the product different.
Suppose your client produced furniture in special colours no one else had,
anyone wanting coordinates would have to come back.
With computers and colour specification systems like pantone, perhaps customerss
can be given the service of picking their own colours.
Your bedroom the colour of your favourite flower, your kitchen the hue of your
most loved blouse etc.
In a little village in England called Kilburn, there is furniture panelling
in stately homes as well cupboards etc.
Over each piece they produce runs a little carved mouse, which stands out like
a chocolate mouse. Search their work, and somewhere you find a mouse scurrying.
For loyalty it's probably the cat's whiskers.
John
John Block Creative, marketing aware work which
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