The Wise Marketer recently reported the rise in coalition marketing as a sales promotion technique. Sales promotion has become more prominent in the last year in a blanket effort to get people  to spend their money less cautiously. It has become important to reward consumers for their loyalty so that they continue to spend money at a time when people are trying to cut back. Encouraging reluctant consumers to spend money continues to be the number one priority for brands at the moment and sales promotion is a proven way to do this. We are at the point where now it is an essential tool to remain competitive, particularly on price.

Sales promotion through consumer incentives and brand coalition is not a new or reactionary concept dreamt up as a recession solution. This has long been the bread and butter of companies such as The Rocket Marketing Group who put companies together in loyalty and membership programmes/ discount clubs and create rewards for staff or consumer incentives. The lure of big brands working together can be a powerful solution for potential rewards and an attractive consumer incentive whatever the state of the economy. All the current climate has done is to highlight the importance of sales promotion to consumers, making it now essential for all brands.

The ideas of brand coalition are the principles that loyalty and rewards programmes or discount clubs and consumer incentive rewards were built on. With loyalty and membership programmes/ discount clubs a member joins a club and then becomes eligible to redeem discounts at various retailers. The joint venture of big and small brands work to validate each other and produce a community of customer centric brands that members become loyal to because they can rely on them to understand their needs/ interests. These loyalty and membership programmes or discount clubs can be categorised to target certain markets such as entertainment, home & garden or white-labelled to match particular brands who want to sell the clubs as non-core products and earn incremental revenue.

The idea of high profile sales promotion has now become an integral part of the consumer shopping experience, so it likely to continue in some guise or other even as the economy improves.

Contact Us to discuss the possibilities of developing consumer incentives and brand coalition solutions through loyalty and membership programmes or discount club for your brand.

The Rocket Marketing Group has produced an exclusive offer for the Natwest bank. Customers of this popular bank can now buy the Blockbuster 2 for 1 Movie & Game Rental Card for only £19.99. With this special price, Natwest customers could save money on Blu-ray, DVD and game rentals, anytime and for an unlimited number of uses for 12 months.

This fantastic offer is being featured in the Natwest Sense Magazine from November 2009 to January 2010. Sense magazine has a circulation of over a million copies and so offers a great opportunity. This is the first time the Blockbuster 2 for 1 Movie & Game Rental Card has been sold directly to consumers, but it has proved to be very popular with members of The Rocket Marketing Group’s loyalty and membership programmes.

Contact Us for more information about the Blockbuster 2 for 1 Movie & Game Rental Card.

As we approach Christmas and the new year comes ever closer, retailers’ attentions whilst fixed on the issues of Christmas revenue, are also looking at the changes that are due in the new year. The lower VAT rate of 15% will rise again to 17.5% little over a year after it was lowered. Will this encourage consumers to spend more money before the prices go up again, or will they even notice a difference? Sales figures have been up on the same period last year but surely has more to do with the rise in consumer confidence. The Nationwide’s Consumer Confidence Index shows that there was no improvement last month in consumer confidence but the previous months’ increases have meant that year on year the increase has been significant. There does seem to be hope on the horizon as other major economies have recently exited the recession and companies such as Sainsbury’s and many more are reporting higher profits once again.

It’s hard to tell if the VAT reduction has really drastically changed things for consumers or businesses. To consumers it seems to have been more of a gesture, as on small every day purchases the 2.5% only equates to pennies. In general consumers have been responding positively to sales promotion techniques – many not leaving the home without a voucher or their loyalty and membership programme or discount club guide in hand. From a consumers’ point of view the discounts found in in-store sales, loyalty and membership programmes or discount clubs usually offer far more value than 2.5% and so eclipse the good of the VAT reduction. These discounts can knock profits but also generate loyalty, retention and even revenue if businesses sell the loyalty and membership programmes or discount clubs to its existing customers.

It could be argued that traditional sales promotion techniques have done more in the last year to promote consumer spending than the lower VAT rate. A discount or reward is something that consumers instantly recognise as value for money and can put into context. By employing sales promotion techniques a lot of businesses have managed to stay competitive during difficult times. As the sales and discounts continue into the new year it’s debatable whether consumers or even retailers will notice a massive difference when the VAT increases to 17.5% again.

Contact Us for information on sales promotion and implementing a discount for your brand or reward for your customers. We operate a number of membership and loyalty programmes that offer members discounts, giving the brand access to a large membership base of loyal customers. This helps businesses to drive loyalty retention and revenue.

Earning incremental revenue from an external source can be seen to be a vital element for any business in the current climate. The recession in many cases is responsible for cutting businesses’ potential earnings from their core products/ services, to a minimum. In a recession that is as deep as the current one, the need to resuscitate business incomings is vital. So in many cases, to maintain a healthy profit margin companies have been looking to expand their current consumer offering.

One such way to introduce an extra incremental revenue source is to work with an external company offering additional products/ services under the umbrella of your brand. By upselling other products such as a loyalty and membership programme or discount club to existing customers there is the potential to encourage them to spend more at the point of purchase.

If this product is tailored to the existing customer’s interests in relation to the business’ products, the success rate is likely to be higher. For example, The Rocket Marketing Group operates the JML VIP Savings Club – a loyalty and membership programme/ discount club, which focuses on Entertainment, Fashion and High Street, Health and Leisure, Freedom to Shop, Travel, Toddler and Baby, Motoring, plus 10% off JML’s entire range of time-saving ideas. These sections reflect, complement and expand on JML’s existing products. The Club is then offered to customers when they call the company to order one of JML’s core products. This not only gives JML a second chance to upsell, but it gives them the opportunity to offer non-core product/ services, enhancing their consumer offering.

This model can be applied to a number of companies, whatever the core products/ services are. When the non-core products are offered through an external agency a range of existing clients can be put together to create a loyalty and membership programme or discount club suitable for the brand’s target market.

There are a number of ways to create incremental revenue and should all be seriously considered by companies who don’t want to rely on the revenue generated through their core products/ services or resign themselves to consolidating the business during tough times.

Contact Us if you are interested in earning incremental revenue and driving customer retention through a loyalty and membership programme or discount club.

In Britain we are currently experiencing the longest recession since records began and it is becoming increasingly hard for some businesses to continue trading. Retailers have been using numerous sales promotion tactics – encouraging consumers to spend money by offering discounts and rewards to customers who shop with their brand. With Halloween and bonfire night just passed and Christmas plus New Year on the horizon, there are many marketing and sales promotion opportunities coming along, perfect for targeting customer retention. But how valuable is it to offer seasonal discounts and what are the best ways to distribute them to the kind of customers who are likely to respond?

The changing seasons and special events such as Halloween and Christmas give consumers a reason to spend money. In the current economic climate consumers have become more cautious about spending money – often only buying the things they need. So the job of businesses and marketers is to make sure that their product is seen as a necessity. This is why seasonal discounts can work – it is seen as a special, limited time deal that everyone should get into the spirit of. The deal gives consumers the excuse they want and the sense of urgency needed to prompt an impulse purchase.

There are many reasons people respond to seasonal discounts, mainly using it as an excuse to treat themselves as well as others or merely trying to wait until the best deal is available. The element that all these reasons have in common is that the consumer is responding to a prompt – giving them permission to make a purchase even though times might be hard. These purchases range from the smallest of knick-knacks to big purchases such as furniture or electrical goods, so any retailer can benefit, given the right marketing strategy. By becoming a port of call for a seasonal discount this then showcases your complete consumer offering and encourages customer retention.

To make your seasonal offer work and ensure your message reaches a responsive audience your business needs to sufficiently highlight the seasonal discounts. This also gives you a reason to refresh your customer communications, giving them a new reason to listen to what you are selling and highlighting the brand benefits. This process should start before the event. By having a run up to an event and renewing the message as the days countdown, it gives consumers the chance to engage with the offer and consider using it.

It is also good to draw consumers in to the fun element of the season or event so they are engaging with your brand on a social level. Show insights into their lifestyle and be seen to offer to help them out with your products/ services. For example how about suggesting gift ideas at Christmas, costume ideas at Halloween or ideas for keeping kids entertained during the summer holidays? The value is in knowing your customer then showing that you understand their mindset and offering them what they want in a way that is mutually beneficial.

As well as in-store and point of purchase offers you can also offer a saving and subsequently a seasonal discount through a third party agency. There are a number of sales promotion agencies that have a substantial loyal customer base to who you can offer your discount to. The special offer you offer will then be distributed to the established customer base who respond to discounts and seasonal discount through regular e-shots, driving customer retention.

There are definitely benefits in offering seasonal discounts and some would even argue that they are still essential for retailers in the run up to Christmas, but as with anything it is essential that they are managed properly to get the best results.

Contact Us if you would like to discuss the customer retention and sales promotion opportunities for your business, by creating an exclusive discount, reward or seasonal discount for a loyalty and membership programme/ discount club.

It is clear what the benefits of sales promotions are for consumers – and they know it. Demand for rewards and consumer incentives have grown immeasurably in the last year and it’s now what consumers expect wherever they shop. On the surface it would appear that this is a one-sided relationship in which consumers are holding businesses over a barrel. Sales promotion shouldn’t and mostly isn’t something that businesses are forced to resort to. Managed properly and thought out thoroughly, sales promotion can be mutually beneficial – particularly in the current economic climate. So what are the benefits of consumer sales promotions for businesses?

Consumer retention

In the long-term a loyal customer is worth far more to a business than an occasional high purchaser. When a customer is recognised as loyal the emotional involvement with the brand is increased. Showing recognition by offering consumer incentives for loyalty stands to solidify the idea of staying loyal to the brand. Loyalty can be rewarded in a number of ways from offering a coupon at the checkout to points collection cards.

Create positive brand associations

Working together with another brand creates a sense of corporate validation and helps your brand to tap into new loyal customer bases. Whatever you trade in there are sure to be a synergistic brands for you to work with, for example hotels and theatres or gyms and sports clothing retailers. It can also work well for pushing you brand’s image in a new direction by moving away from the logical partnerships, for example if you want to raise your green credentials how about teaming up with environmental brands such as The National Trust?

Increase brand recognition

Brand recognition is essential for enticing customers to buy your product/service over another. The authority recognition gives your brand offers consumers confidence in your product/service, as they know what to expect. Increasing brand recognition comes from offering your sales promotion to a wider audience than your regular customer base. A good example of this is featuring a consumer incentive or exclusive discount in a loyalty and membership programme or discount club. These programmes are usually a free marketing option, managed by an external agency that have an large existing customer base.

Reach new consumers

Sales promotion can be one of the most effective ways to catch new customers’ eye.  The best ways to offer a discount or consumer incentive is through a loyalty and membership programmes/ discount club or a chance to win a grand prize. By doing this you are giving consumers a reason to stray away from the brands they are usually loyal to. Competitions are an instant way to catch people’s attention but loyalty and membership programmes or discount clubs go out to an established customer base and can sustain a lasting message.

These rewards are useful to any business and however you want to represent your brand there is a sales promotion answer for your business, that can be effectively integrated to compliment any marketing plan.

Contact us if you would like to discuss how one of our loyalty and membership programmes/ discount clubs or consumer incentive and rewards can benefit your brand.

Over the last few years the rise in the use of sales promotion in the form of vouchers and discount clubs, has led to a culture of consumers not leaving the home for a meal/ day trip without one. Because the vouchers and discount codes accompany so much cash into the tills, it is as if the voucher has become a form of legal tender.

In order to compete for customer retention is it therefore essential that retailers now adopt sales promotion techniques and trade/deal with vouchers plus exclusive discounts, even in the run up to Christmas?

Companies use sales promotion by offering discounts, and accept them against payment for a number of products and services. The rise in the voucher is not only specific to the people who you would traditionally associate with bargain hunting, but most people now have used a discount in some form or other. Nielsen online reported that 9.8 million Britons used a coupon or reward site in 2008. In 2008 coupon and reward websites were the second fastest growing UK online sector according to YouGov. And most tellingly of all, 48% of shoppers were more likely to use retailers who offered voucher codes (Nov 2008).

Consumers are now programmed to look for discounts, if one shop isn’t offering a discount then the next one will be, so it is therefore not surprising that retailers are using sales promotion tactics by offering vouchers or exclusive discounts to members of loyalty and membership programmes or discount clubs. By doing this retailers are not only bolstering their presence on the high street but encouraging increased redemption online as well. And as internet shopping becomes the norm for many people, it’s increasingly important for retailers to establish their brand online – where it is even more important to be competitively priced, as other retailers are only one click away.

Contact Us if you are interested sales promotion for your business. We can discuss rewards for your consumers or an exclusive discount to offer members of a loyalty and membership programme or discount club.

Childhood days of collecting small change for a piggy bank may seem like a long winded approach to financial efficiency, but the lessons of prudent saving, budgeting and most importantly patience – can be key to getting ahead in the current economic climate both for businesses and consumers alike. Hard pressed consumers have become savvy at spotting bargains/ finding ways to save money and it’s important for businesses to be aware of the general change in customer’s spending habits to improve customer retention.

One way consumers are making substantial savings is by spending a little time calculating income against regular outgoings and developing a weekly or monthly budget. Looking at figures isn’t fun, and whilst this may in fact sound too simple to be of use, once aware of both how much they are spending and primarily where they’re spending it, ways of reducing this spend become much clearer. The key to customer retention for businesses is to be aware of the intended target market – knowing how they approach saving and subsequently positioning your brand as an essential purchase.

Consumers are now shopping around

Businesses operate in a competitive market and in many sectors, like energy for example, for consumers prices can seem frustratingly similar between suppliers. There is however evidence of fierce competition presented through indirect promotions like customer benefits and rewards. Even if consumers don’t take advantage of rewards immediately they retain information for future use. Price comparison sites can help with this process for utility bills and insurance especially, but sometimes this involves them engaging with your brand on the phone – consumers taking ten minutes out to get a quote or two will be receptive to any extra benefits you can communicate to them, making it easier for your company to achieve customer retention. A recent high-profile promotion is Tesco’s BOGOL (buy one get one later), designed to improve customer retention instead of just moving volume of stock.

Considering before buying

Bigger purchases like cars, furniture, computers, mp3 players, etc. can all set consumers back substantial amounts of their hard earned income. Before they buy, they can check to see if there is any scope for negotiation on price, or if the supplier would throw anything else in! More importantly though, consumers now usually ensure that they’re buying the right item beforehand. It’s too easy to regret an impulse purchase just a few months later, or to get a gift wrong for a loved one on Christmas eve. At the end of the day, if times are tough consumers should always ask, “Do I really need this?” A good technique people are using is waiting a day for every £100 in the price (or £10 for smaller purchases) – if still happy by the end of this period then they’ll at least have had a chance to think it through thoroughly and check out the competition. In this instance if you can’t  sell to them straight away, it’s about making the effort and giving them a reason to return (competitive price, the best service, any optional extras you’ll throw in just for them) – nurturing their needs and respecting a requirement for space plus reassurances.

Ordering pre-purchase vouchers

High street stores and big name brands like Debenhams, Topshop, Miss Selfridge, PC World and B&Q often either provide their own form of pre-purchase voucher, or are part of a wider voucher like Love2shop or SayShoppingPass. Through membership to a loyalty and membership programme or discount club such as The Big Savings Club or The Home & Garden Club for example, consumers are able to take advantage of savings of up to 7% on many of these vouchers. With Christmas on its way consumers will be spending more over the next few months on both everyday expenditure like energy, right through to gifts for friends and family and luxuries like good food and drink. So is this something your business can take part in? One of the easiest ways to achieve customer retention from vouchers or discounts is through a loyalty and membership programme or discount club. The operators of the loyalty and membership programme or discount club such as The Rocket Marketing Group, manage the club and can design bespoke vouchers featuring your discount to feature in print and online. This marketing service is usually free, all your brand has to do is offer members of the loyalty and membership programmes an exclusive discount.

Not yet made the most of customer retention by offering consumers an exclusive discount through a loyalty and membership programme or discount club? Contact Us today.

As a customer, the brands you consider yourself to be loyal to may be different from the brands that consider you to be loyal to them. Is this because businesses measure loyalty by statistics – the potentially biggest spending consumers are considered the most valuable/loyal whether they have an emotional attachment to the brand or not? These consumers are not necessarily the most valuable in terms of long term profitability or opportunity for the ‘word of mouth’ marketing (which is increasingly important during the social networking revolution). For customers, loyalty is more of an emotional concept and brand affinity is normal for defining who we are; subsequently we can become more susceptible to act upon the call to action or passing on core brand messages.

A lot of marketing campaigns fail to address this 3 dimensional element of consumer loyalty and miss the opportunity to reward and encourage consumers that whilst in business terms are not considered loyal, but in social terms most definitely are.

In the case of loyalty marketing is it not therefore important to not only reward the loyalty of high spending customers (through points schemes etc.) which of course should always be the main priority, but to also reward those who through their brand loyalty ensure continual use of the brand and bolster the positive associations with a brand?

Loyalty marketing or sales promotion has emerged as a mutually beneficial programme that seeks to appease both customers’ and businesses loyalty needs. From a customers’ point of view they are receiving what they consider to be a special discount – particularly in the current economic climate, this can be seen to help financial burdens. A percentage discount can ensure the reward is given in direct correlation to the amount spent, so everyone is rewarded for the amounts they spend.

It boils down to consumers needing to feel valued no matter how much they are spending – surely if your brand nurtures its consumers through loyalty marketing, its consumers will nurture your brand?

Contact Us if you are interested in loyalty marketing by featuring a discount in a loyalty and membership programme or discount club to improve customer loyalty by rewarding new and existing customers.

Ashley Faull joins Andy Huggins and Alan Saunders on the board of The Rocket Marketing Group. The Rocket Marketing Group has enjoyed substantial growth this year, currently employing over 40 members of staff. In the last 6 months Rocket has expanded its product portfolio to 7 great products including The Big Savings Club, The Entertainment Club and the 241 Hotel Club.

As a non-executive board member Ashley’s experience in growing businesses and his media and consumer knowledge will be a key part of this expansion. Ashley comes to Rocket having launched and worked on over 14 TV channels during his career with companies including The Discovery Channel, Telewest and ON Digital. Other business achievements include winning the Broadcast Magazine inaugural ‘Individual Achievement’ award and co-founding the sit-up channels (bid tv and price-drop tv), which won many accolades. The sit-up business was sold to Virgin Media for £194 million in 2005.

Ashley comments: “I have known Rocket and its Directors for several years and believe them to be the very best operators in their field. The company has a very exciting future and I am delighted to have become a shareholder and Director to help guide them through the next stage of their journey.”

Contact Us if you would like to work with Rocket on loyalty solutions for your business.