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This question has been answered, and points have been awarded.
Car Part Company New Loyalty Card Name And Tagline
1/2/2013 at 6:58 AM ET
Hi! I own a company selling car parts to the trade and public, much like a Screwfix business for the automotive trade.
I'm looking to launch a loyalty card for the retail customers, many often carry out jobs for their friends. We're looking to keep them returning through use of a loyalty card. There are a number of benefits but the key points are 5% off every order, exclusive offers and competitions.
I need some help with the name of the loyalty card scheme and a tag line.
1/2/2013 at 7:44 AM
we don't have much to go on here. If you are looking to the Screwfix approach, you need to call someone in because this will have a major impact on your business. I am sure that if you look in the directory you will find someone in your locality.
My point is that Screwfix are a big brand and spend very large sums on advertising. That they don't have to is neither here nor there. That is the way they do things, and if this is the way you want to do things, then expect bills equally large. You are in a market that is already saturated - I speak as one who used to trot down to Screwfix in an emergency and to my local parts dealer if my ex was burrowing beneath the transit. There was no shortage of alternatives.
Oh, and you can keep them returning with more than just a loyalty card. Because my experience of Screwfix is of waiting in long queues and having long waits as parts were found and lost. I presume you have a delivery arm, do you have an "emergency delivery arm" (= 1 or 1/2 hr service at a super premium price?). In an absolute emergency this could be a lifesaver for a tradesman facing a deadline* - and you could even do it using a taxi! (The pricing would allow for that).
Now: If you are going to get canny, you need to speak to your customer's existing frustrations (see above) and address these. Because once that has been sorted, a loyalty card is then a must for them because of the service they love. Put this way around and the minimal difference of 5% becomes a bonus rather than a stimulus.
You say you already own the business. What are your customers already saying about it? Take a look at my response to Nicol here
(Posted by Moriarty on 1/1/2013 at 5:04 PM) Because with this sort of information we can aim for the heart.
To your success,
*Guess why muggins here was trotting down to Screwfix!
PS for those of you outside Europe, this is the Wikipedia article on Screwfix
1/2/2013 at 8:33 AM
Thanks for the great response Moriarty. I'll flesh out my original post.
We treat retail customers and trade very differently, we've had clashes in the past where large trade customers have been upset over something quite minor which turned into something major when they stopped purchasing from us. This has always put other staff members off from targeting retail customers, but having leant from our mistakes, I think it's worth another go.
We already have several levels of pricing for the trade, much more than a 5% discount. They also already get free delivery on targets within 120 minutes, if not better.
Within our retail customers there are two sub categories so-to-speak, you have those who do not know anything about cars other than recognising there is something wrong, wiper blades need changing, bulbs need replacing etc. For example, customers of Halfords. The second group are the DIYers and those who repair their own vehicles as well as friends and families. It is second group we're looking to target.
They are knowledgeable on the basic mechanics and know what they are looking for. They do not expect 30 days credit, pay immediately and can wait for parts to be ordered in. However, they also have time to ring around other suppliers for better prices to negotiate price matching.
If we offered a flat rate discount card with other added benefits I was hoping it would get this group in the routine of shopping straight with us rather than the competition.
1/2/2013 at 8:58 AM
thanks for the great response!
(1) You say "we've had clashes in the past where large trade customers have been upset over something quite minor which turned into something major when they stopped purchasing from us."
Why would a trade customer be upset over something minor? This is very important as trade customers are very like individual ones - some of them are not worth the effort. When we had a building business in the UK we had niggly clients. I hated them because they always wanted more and never paid on time. Now just off the top of my head I started introducing new clients to our basic terms and conditions. This included the when and where of our standard follow-ups that put any snags to rights (not for genuine emergencies of course!). I also stated that we didn't do cash jobs (= they would always beat you down on an already agreed price - v. bad news).
This had a magical effect. The number of whingeing clients we had phoning at all times of day (and night) dropped 90%. We could plan in meetings for repairs and on-completion surveys, and these were always happy events. Our better clients liked the fact that they knew we would come and sort any minor problems out, and all they had to do was make a list. It actually made it nicer for them, because they didn't have to do anything* (!!). We came along and sorted it all out, having given enough time for the repairs they had booked. (*Like ring us up in the middle of the night because a door squeaked).
So take my word: nagging clients are dustbin fodder.
(2) "They also already get free delivery on targets within 120 minutes, if not better." - - - sounds as if a 30 minute emergency service is possible for 35/50 pounds extra.
**** **** **** **** **** **** **** IMPORTANT **** **** **** **** **** **** **** **** **** ****
(3) Your individual clients: what have they said to you that they like about your business? What have they said they *don't* like (!!). Because you can act on this last issue, or fess up to it and state it up front. That will stop any possible misunderstandings they might have. If you are that good, they will put up with the niggle knowing you are honest enough to state the matter in plain English.
**** **** **** **** **** **** **** **** **** **** **** **** **** **** **** **** **** **** **** **** ****
(4) "they also have time to ring around other suppliers for better prices" make sure your service is so good that they only need one telephone number! They will know the price is good enough given the quality of your service.
An example is that we would use a local hardware outfit called Drew's. More expensive, yes, but they did have almost everything you needed. It saved you having to slog all around town just to save a couple of quid. Wickes was always about price - and the quality was equally dire. So was their range. They never had enough stuff and you could never guarantee their having it. We used them only for plaster and cement (the sort of thing that Drew's didn't do in big batches).
Make your service fast and comprehensive. Offer free tea and coffee at your showroom*. Make the whole thing a relaxing experience that is nice to arrive at after half an hour in rotten traffic.
*All the Dutch supermarkets offer free coffee. Filter coffee too, not your powder rubbish!
**** Moderators please take note!
1/2/2013 at 12:06 PM
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