When will consumers start enjoying the shopping experience again? The British Retail Consortium has recently reported that consumer spending increased 6.3 per cent from April 2008. With sales figures up on this time last year, can we see this as an indicator that the general guilt of spending any money unnecessarily has subsided? And is there anything businesses can do to make the public love shopping again?

Stephen Robertson, Director General, British Retail Consortium, said: “The best sales growth for three years is good news but let’s be cautious. A sunny Easter that fell in April this year is the key reason why overall sales are up compared with last year when Easter was in March and miserable. Sales of garden goods, outdoor leisure, clothing and food did well but other non-food sectors missed out on the seasonal boost and the total spent on food rose less than food inflation, indicating the amount sold dropped.

Following a tough winter, there’s some pent up demand but there’s no reason to think customers suddenly feel flush or eager to spend. With unemployment set to grow through the rest of the year, mounting jobs worries will hold back spending for some time. It would be great if the historically weak performance of the last twelve months was behind us but we shouldn’t celebrate yet.”

Businesses have done a lot to try and entice the public back into spending and it is working to some extent but there are limitations to the success consecutive sale periods can have. It can damage overall consumer loyalty, devalue the brand and the rewards can rarely match what a loyalty and membership programme can offer?

When the objective is to make consumers feel rewarded for buying and/or remaining loyal to a specific brand, a loyalty and membership programme can do this extremely effectively. The other advantage is that marketing a brand in this way incurs no cost for participating businesses; all they have to do is offer an exclusive discount for members. A business’ customers who are members of the loyalty or membership programme receive extra free rewards which give added value to the exclusive discounts they receive from the business.

The Rocket Marketing Group operates a number of loyalty and reward programmes and the largest of these is The Big Savings Club. The Big Savings Club features businesses offering exclusive discounts, from a variety of sectors including Shopping, Entertainment, Travel, Health, Fashion, Kids and Motoring. When a customer joins this club they are given seven free rewards which they can redeem along with the discounts offered by the featured businesses.

Rocket feel that consumers should really start to love shopping again when they receive the exclusive discounts and free rewards contained in The Big Savings Club. The rewards include a Free European Flight, Sail to France for Free, Free UK Hotel Accommodation, Worldwide Accommodation for a week for just £200, 2 for 1 Golf, City Cruise and £400 off a Holiday to Florida.

Contact Us if you would like to discuss how a Rocket Marketing Group loyalty and membership programme and free rewards can make consumers love shopping at your business.

Offers correct at time of publication and subject to terms and conditions.

With the state of the economy many businesses have realised the importance of giving their customers more in terms of offers and services, to ensure consumer loyalty and profit growth. Traditionally this has been the domain of businesses such as supermarkets and increasingly so in recent years as they have expanded into areas such as clothing, banking etc.

Not all businesses have the capacity to expand in this way but there are other ways to diversify and offer non-core products and services to encourage consumer loyalty. One option for businesses is to offer customers the opportunity to buy into a bespoke loyalty and reward programme which carries their branding but is operated by a third party such as The Rocket Marketing Group.

By a third party managing every aspect of the extra offering of non-core products and services through a loyalty and membership programme the business receives free added extras for the brand without having to commit additional resources.

These programmes can essentially offer non-core products and services at a discounted rate to customers who become members. The programmes can be fully branded with a company’s logo so that they feature under the umbrella of the one brand. The products the programmes offer can also be completely bespoke depending on what a business wants to offer customers. All of this means that a company’s customers don’t need to go anywhere else to complete their shopping experience. This has to help with consumer loyalty whilst providing an effective way for a business to gain profit growth through earning incremental revenue.

In the current economic climate businesses that offer the full service shopping experience at value prices are doing very well. A good example of this is the supermarkets that offer a wide variety of products and services at value prices and are reporting profit growth when many other sectors are experiencing a downturn.  Sainsbury’s profits have recently reported a total sales growth of 5.7 per cent in the preliminary results for the 52 weeks to 21 March 2009.

Justin King, Sainsbury’s chief executive, said: “Our business is growing because we have responded quickly and effectively to a rapidly changing environment. Total sales for the year were up 5.7 per cent and like-for-like sales excluding fuel were up 4.5 per cent..In addition we have continued to drive cost efficiencies offsetting over 75 per cent of cost inflation and delivered further profit growth.

Fixing fundamental parts of our operation through our ‘Making Sainsbury’s Great Again’ recovery programme has placed the business in a strong position. Although consumer confidence in the UK has declined during the year, our performance improved as a result of the strength of the Sainsbury’s brand and actions we have taken to adjust our offer to changing customer trends.”

So producing a white-label loyalty and membership programme can be an effective way to compete with the full shopping services and consumer loyalty of businesses such as supermarkets. The programmes can act as a way to simulate the success of supermarkets by adjusting a company’s offering in reaction to changing customer trends.

Contact Us if you would like your business to offer non-core products and services to your customers through a loyalty and membership programme, encouraging them to stay loyal to your brand.

During harsh economic times it’s good to hear of a success story and this is one such case. The Rocket Marketing Group specialise in developing, implementing and managing loyalty clubs, reward programmes and incentives promotions and recently reached its one millionth sales order using SAP Business One, business management software. This is a massive achievement for a company that only installed the system in March 2007. SAP Business One systems manage every aspect of the company including CRM, finance and stock control. This provides stability and consistent quality standards, allowing the business to grow and handle multiple programmes simultaneously.

The Rocket Marketing Group was established in 2001 and has been growing rapidly ever since. The company currently has over 120,000 full active members to its loyalty clubs and reward programmes and works in partnership with over 100 UK businesses, from large businesses to small retailers.

The company’s figures show a 375% growth since the installation of SAP Business One, from a turnover of £1 million in 2006-2007 to £3.75 million in 2007-2008. SAP Business One was instrumental in giving Rocket the capacity to expand whilst not compromising on quality. From managing just one membership club in 2007 Rocket has seamlessly grown and now operates a total of 5 different reward programmes. Using this system and maintaining quality standards have meant both profits and efficiency have greatly improved whilst operational costs have reduced.

Alan Saunders, Operations and Business Development Director said: “SAP Business One has been significant in the growth and stability of the company. It helps to ensure that the business is operated in a way that is efficient and controlled. The Rocket Marketing Group’s success, most notably its excellent standards of quality and efficiency has also been recognised by The British Standards Institute which awarded us with ISO 9001 Quality Management accreditation, and SAP Business One has been a large factor in this.”

The recent economic downturn has certainly helped improve the popularity of The Rocket Marketing Group’s products, as people become increasingly interested in discounts and non-core offers. Loyalty and reward programmes give consumers what they need and can create loyal customers for the businesses involved. SAP Business One has enabled Rocket to react and act upon the needs of consumers and their demand for discounts across a variety of sectors.

The one millionth sales order signifies a success story for everyone involved and is cause for celebration. With this in mind Rocket passed on the good fortune to the lucky customer who placed the one millionth sales order. They were treated to a slap-up meal at a local restaurant courtesy of The Rocket Marketing Group.

Contact Us to join the celebrations and find out how you can work with The Rocket Marketing Group.

If you believe what the statistics show, then staying in is the new going out. Over the last year the recession has taken hold of Britain and as a result the general public’s spending habits have changed. Through the real fears of redundancy, recession and rising fuel bills people have become more money-conscious. It’s almost no longer a taboo to collect discount vouchers, look for cheaper entertainment or seek discounts in shops and online. A lot of people find the easiest way to save money is to change their spending habits and stop buying non-essential goods and experiences. So how does this affect the businesses that offer these products and services and is there a way to make them affordable during a time of such uncertainty?

Research from Abbey Credit Cards conducted in January has revealed that: “British dining habits are being dramatically affected by the changing economic climate, with over half (56 per cent) of Britons cutting back on eating out.”

They also found that: “Dining ‘al desko’ is also gaining momentum with 17 per cent more starting to take a packed lunch to work in the last 12 months to save money.”

And it is not just the catering industry that is being hit by the public changing their spending habits and cutting back. Cheaper entertainment has seen an increase in business over the last year, as we saw earlier this year when companies such as Cineworld revealed their yearly figures, reporting a rise in sales.

On this, Chairman, Anthony Bloom commented: “Movies have an enduring appeal and a visit to the cinema is relatively low cost when compared with other forms of leisure and entertainment.”

People will continue to spend on large items but maybe less regularly, so what can these businesses do to encourage more regular sales during harsh economic times particularly companies offering experiences that aren’t considered cheap entertainment?

Price Reductions through a managed reward programme can reap good rewards even when people feel they have to change their spending habits, as they encourage a continuance of a certain type of lifestyle. In The Big Savings Club reward programme, The Rocket Marketing Group position companies that are larger, non-essential purchases next to everyday essentials and cheaper entertainment such as supermarkets and cinemas. For members the special experience or product doesn’t seem like so much of a luxury/ treat but rather a privilege of belonging to a reward programme. They need not cut back or go out less often; they can use it as an aid to maintaining a certain lifestyle because there are discounts on everything including Shopping, Entertainment, Travel, Health, Fashion, Kids and Motoring. It is a way for people to cut their spending without cutting back. Higher value products/services offering a discount include:

10% extra free on Theatre Tokens
10% free on Leisure Vouchers
15% off Virgin Experience Days
Up to 50% off Haven Holidays
15% off Champneys.

Contact Us if you are a company that would like to be featured in one of our reward programmes. It is a completely free marketing option; all you have to do is offer an exclusive discount for the reward programme members.

Offers correct at time of publication and subject to terms and conditions.

There are signs that the recession is starting to slow and in some sectors there is even speculation that it has bottomed out. This is fantastic news for the struggling economy and companies that rely on consumer confidence to survive. We’ve seen too many victims of the dismal financial times recently, from large British institutions such as Woolworths to smaller local independent businesses.

Paul Otellini, Intel President and CEO said: “We believe PC sales bottomed out during the first quarter and that the industry is returning to normal seasonal patterns”

As PCs are considered non-essential goods, the rise in the company’s fortunes are probably a reliable clue as to the way in which the economy is travelling. Even the housing market, which many people use as an economic barometer, is starting to show signs of a recovery. The Royal Institute of Chartered Surveyors has just released its Housing Market Survey, which highlighted the recent increase in people interested in buying and how this is starting to translate into actual sales:

“Significantly, the tentative signs of a pick-up in activity have become more broadly based over the past month. New buyer enquiries have now increased for five consecutive months with the positive net balance in March climbing to its best level since September 2003.

More importantly, there is now clear evidence that the higher level of buyer interest is feeding through into actual sales. Newly agreed sales, measured on a net balance basis, rose over the month as did the average sales per surveyor series (for the first time since the tail end of 2007).”

With this in mind it is maybe time for both large and independent businesses to start thinking about how to launch out of the recession positively? How to be the first one to reap the rewards of a healthier economy and build a customer base that is willing to start spending money?

One answer is to start building a loyal customer base now. It is a time for consolidation; when the economy picks up and consumers start spending money again they will probably be spending it on the brand with which they have built a relationship with. If a brand has rewarded consumers during difficult times the affiliation that has been built will more than likely mean that these customers end up rewarding the business through affluent times.

Here at The Rocket Marketing Group our primary focus is to drive loyalty, retention and revenue for both large and independent businesses. Our combined reward programmes have a membership base of over 100,000. Becoming involved with our reward programmes gives both large and independent businesses a free platform to market a brand and tap into an established base of loyal customers. We manage everything end-to-end and in-house so it is an effective and efficient way for businesses to promote products and services.

Contact Us if you would like to discuss what a Rocket Marketing Group reward programme can do for your brand whether it’s a large or independent business.

The British Bankers’ Association reported that the amount banks lending to small businesses rose by 239 million in January, proving that small businesses can still emerge and grow despite the current economic climate. In some instances small and medium sized companies are actually better equipped to deal with harsher times as they can be more streamlined, determined and focused on consumers needs. But are there things that small businesses can do to optimise these advantages and boost consumer confidence?

Commenting on this data, BBA statistics director, David Dooks, said: “There have been net rises in term lending to small businesses each month since last autumn, albeit at levels below last year’s monthly average, reflecting subdued business investment in the economic downturn. At the end of last year, the outstanding level of term lending was some 9 per cent higher than a year earlier. The many small businesses that don’t borrow are drawing on cash reserves to fund current cash-flow needs, such as January’s tax payments. Despite the recession, people are still embarking on new business ventures, as shown by the number of new start-up relationships in early 2009 being in line with last years average.”

There’s always room for small to medium sized businesses to flourish in the current economic climate because of the unique relationships they can foster with their customers. It is so important to get the small details right and build mutually respectful relationships with consumers, as it’s far easier to adapt to individual needs and build brand trust and consumer confidence at a grass roots level. But businesses that rely on reputation and word of mouth can’t afford to make mistakes. So it’s particularly important during the current economic climate to give customers what they need and make sure that their recommendations become an effective form of free marketing. This is something that has become increasingly important and recognised by all businesses, whatever their size.

In its latest quarterly referendum survey, members of the Forum of Private Businesses voted for restoring business confidence (65%) and restoring consumer confidence (63%) as the two issues they most want the Government to prioritise in the 2009 Budget in order to support their businesses.

For smaller businesses, finding ways to reward customers is particularly important when trying to develop and enhance consumer confidence during the current economic climate and that’s why The Rocket Marketing Group offers a number of reward programmes including The Midweek Dining Club, The Home & Garden Club, The Big Savings Club and The Entertainment Club. These are particularly good for small and medium sized businesses to be involved with, as they offer free marketing on a national scale to an ever growing customer base of 300,000 people. All our partners have to do to receive this free marketing, is offer an exclusive discount to our members. It is a way of giving customers something back for remaining loyal to the brand.

The Rocket Marketing Group’s range of reward programmes are also available to be sold to a business’ existing customer base. We currently work with clients such as JML who generate commission by selling a range of clubs to their customers. This gives JML incremental revenue and gives the customers a wider range of products and services at a reduced rate, which they associate with JML, making it more of a one stop shop for consumers’ needs.

With the recent announcement that the UK is heading towards a period of deflation, the worry is that consumer confidence will dip further. The fear of businesses is that the public become even more reluctant to make non-essential purchases, especially when the costs of goods are continuing to fall.

According to the Office for National Statistics, the Consumer Price Index was 3.2 per cent in February 2009, up from 3.0 per cent in January 2009. Retail Prices Index (RPI) inflation slowed to 0.0 per cent in February, down from 0.1 per cent in January.

In an already beleaguered market it’s hard to believe that things can get any worse, as surely people have already changed their spending habits as much as they are willing to or can do? But then in a bid to learn from history we have to look at the unfortunately lengthy deflationary period Japan suffered during the 90s and brace ourselves for what could be a long period of deflated consumer confidence. Ultimately though, only time will show us how it will all pan out, so all businesses can do is optimise every selling opportunity.

The Rocket Marketing Group offers a range of reward programmes developed to help businesses drive repeat business, promote brand loyalty and improve consumer confidence, which are important elements for optimising every selling opportunity in hard times. It is completely free for businesses to be featured in one of the reward programme brochures, websites and seasonal newsletters, when they offer an exclusive discount for club members. Membership numbers for The Rocket Marketing Group’s reward programmes have soared in recent years to an ever growing total of 300,000 people, so there is a large base of customers for businesses to engage with.

With a permanent sale season on the high street and online sites such as MyVoucherCodes.co.uk and MoneySavingExpert.com, the recession has driven consumers to become sale savvy and expect a discount whenever they spend money.

MoneysSavingExpert.com had only a 1,000 recipient mailing list back in 2003 and now it receives 15 million visits per month, with a 3 million person weekly e-mail list.

www.quantcast.com reported that MyVoucherCodes.co.uk receives approx 60,000 visitors per month, which is 4% up in the last 3 months according to Alexa – www.alexa.com

As consumers hold companies to ransom, unwilling to shop without the hint of a discount, how can companies distance themselves from the permanent sale but remain on the ever successful money saving bandwagon?

From a business point of view the danger of the constant sale trend, is the possible deflation of the brand’s value, as the consumer starts to view the sale price as the norm. There is no doubt that sales help in the short-term but they can ultimately be damaging to a brand’s image.

Many businesses have come to realise that offering discounts through loyalty and membership programmes is a more long-term solution that is actually beneficial to the brand’s image; yet still wholeheartedly jumps on the money saving bandwagon. And that is why the popularity of membership and loyalty programmes has soared.

The Rocket Marketing Group has seen membership numbers of its range of loyalty and membership programmes increase dramatically to 120,000 people over the last few years. The benefits for businesses include free marketing through member websites and brochures that reach a huge customer base. All they have to do is give the consumer what they ultimately desire – a discount. By offering consumers a discount in this particular way the offer remains ‘special’, as it’s only offered to a closed group of people; the brand’s image and values remain intact and the customer gets they want.

As a company that specialises in loyalty and membership programmes, we recognise the importance of customer retention for increasing a business’ revenue. Studies have shown that by increasing retentions, a company’s profits can grow dramatically.

According to a study by the global business consulting firm, Baines and Company: “A 5% increase in customer retention can increase a company’s profitability by 75%.”

In another study, Zero Defections: Quality Comes to Services by Frederick F. Reichheld and W. Earl Sasser, Jr. this theory was applied directly to a business, and the results were astonishing. Reichheld and Sasser reported that: “When MBNA America, a Delaware-based credit card company, cut its 10% defection rate in half, profits rose a whopping 125%. But defection rates are not just a measure of service quality; they are also a guide for achieving it.”

Although the exact figures from the studies vary, one thing is for sure; they consistently show that when customer defection rates are lowered, profits increase. And with the current economic climate in mind, these are results that can’t be ignored, whatever sector you trade in or whatever the size of your business.

Having confirmed that customer retention is essential, the question then has to be – what can a business actually do to increase loyalty?

The Rocket Marketing Group has created the answer for businesses, helping them to deliver excellent customer service and drive loyalty. Through our range of loyalty and membership programmes companies can offer club members (customers) exclusive discounts or alternatively sell our products to provide customers with a comprehensive shopping experience.

Loyalty and membership programmes not only drive repeat business for clients by offering members great savings, but customers can also feel exclusively tied to a brand by belonging to a club; their relationship with a brand is deeper than the average consumer – they feel special. Joining a club can also be an expression of the customer’s personality. It can enhance their affiliation with the area of interest, for example, The Rocket Marketing Group’s Entertainment Club is perfect for someone who considers themselves fanatical about films and The Midweek Dining Club is a must for all foodies. By offering members of a club exclusive discounts and rewards you are confirming their value as a customer and giving them a connection with the brand.

The Rocket Marketing Group loyalty and membership programmes include: The Big Savings Club, The Entertainment Club, The Midweek Dining Club and The Home & Garden Club. The clubs are managed by us and give a hassle-free way for businesses to offer customers more. And because we are proud of our excellent customer service record, achieved by our team of 30 technical, fulfilment, marketing, call-centre and creative specialists, all managed in-house, a partnership with us can benefit any brand enormously.

The Rocket Marketing Group announces a new signing with New Image TV for its national rewards programme The Big Saving Club.

Rocket makes an ideal partner as its club programme perfectly match New Image TV customers by offering a huge range of discounted offers and savings.

“New Image TV were looking for a reward scheme that would complement their key target sectors whilst being well aligned to their customer demographic. We have an appropriate offering in each category” says Andy Huggins, Rocket’s MD. “This will not only incentivise category sales, but will also create new and incremental revenue opportunities that would otherwise not have been available to them. We’re very pleased to have been selected by such a forward thinking company”.

Jim Coleman, CEO of New Image TV said “We’re delighted to be working with The Rocket Marketing Group. Having looked closely at the various club providers in this industry, we selected Rocket on reputation and their commitment to delivering both an excellent product and a quality customer experience.”