As Morrisons announce an underlying profit before tax up 22% to £359m (2008/9: £295m) and the Halifax reporting that house prises rose another 0.8% last month there are now definite signs that the recession is slowing and maybe even that the end of our current economic problems are on the horizon. What does this mean for businesses and the average consumer? Will consumers maintain their spending ransom on businesses, forcing them into drastic recession solutions or will we eventually see the end of the sale season?

It’s hard to know whether people have just changed their spending habits and this is how it is going to stay or if it’s just a fashion/fad/phase that will pass. Businesses and marketing departments definitely have a tough road ahead rebuilding the worth of recession battered brands. This has been an important era for marketing as the spending culture has changed so dramatically. In some cases this is not just due to the recession but the increasingly wide spread use of online shopping, the recession has just acted to highlight the shortfalls of ageing business models – and these are possibly the businesses that won’t emerge from the sale.

Throughout the last year marketers have relied upon discounts and sales as the complete recession solution but now as we move out of this era will the lower prices be forced to remain and move from a desperate recession solution to the norm. All businesses need to start regaining their brand value by ending the sale season and finding other ways to offer consumer incentives. There are other free marketing solutions available which both benefit the consumer and business involved.

These free marketing solutions involve consumer incentives that promote brand loyalty rather than a ‘shop where’s cheapest’ mentality. A good way for businesses to tap into this culture but maintain their brand value is through affinity marketing. This is a free marketing tool which can offer consumer incentives in a number of ways including through loyalty and membership programmes or discount clubs. These clubs work well because they are not exclusively recession solutions. Companies such as The Rocket Marketing Group operate a number of loyalty and membership programmes or discount clubs. Businesses feature in the loyalty and membership programmes or discount clubs as a free marketing solution; all they have to do is offer members an exclusive discount. These discounts act as consumer incentives and they can effectively drive loyalty for the brands featured in the discount club.

If you are interested in free marketing through affinity marketing – featuring your business in one of The Rocket Marketing Group’s loyalty and membership programmes, purchasing a consumer incentive or selling the clubs and generating an incremental revenue please Contact Us.

It seems like all people want at the moment is the cheapest deal, and that lowering prices and putting huge sale posters up is the only way to entice consumers into a shop/business. But with sale savvy shoppers and the help of internet comparison sites how far can this go? Have prices finally reached rock-bottom and how has this aggressive discounting damaged the perceived value of these items/services? Have we allowed the financial panic to reduce brands’ value? The possible recession solutions have raised so many questions for marketing professionals and as we start to see light through the economic gloom the answers are starting to become clearer.

In hindsight it seems short-sighted of businesses to look at aggressive or competitive discounting as the complete recession solution, for example will Pizza Express ever be able to return their prices to the level they were 2 years ago? Many people only visit Pizza Express if they have a 2 for 1 voucher because there’s always an abundance of vouchers online and you can basically download them whenever you like. A lot has changed from 2 years ago when the brand was known to belong in the upper level of high street chain restaurants, to now when you might think of it as a discount Pizza restaurant. It has not only changed our perceptions of the price but also with it the type of people who eat there – in many people’s view it’s not the experience it once was. By heading such an onslaught of discounts, this recession solution has effectively but gradually and probably unintentionally rebranded their business and the brand value has suffered.

Another example of this recession solution is Waitrose, who introduced their Essentials range, giving customers the opportunity to buy quality produce at a low price. This was in response to reports that supermarket shoppers were switching to own-brand goods to save money. Waitrose has always been known as a more exclusive supermarket and this is surely the primary reason people are brand loyal and choose to shop there; so if people are prepared to pay a premium for your products why change that? Waitrose positioning themselves using the same marketing techniques as less aspirational brands was always going to pose the risk of missing the target market. It’s still early days but isn’t it potentially damaging to long term profits if the brand were to be devalued any further or reach the point where their identity was forced to change as Pizza Express’ has?

These are just two questionable aggressive discounting decisions but they are definitely not alone. Is it therefore possible to give customers what they want whilst marketing your business out of the situation? Reducing the price does tap into the mood of the nation but there are ways to do this which make the discounts appear exclusive rather than the norm. Surely this is less damaging to perceived brand value?

Discount hunters often belong to externally managed loyalty and membership programmes or discount clubs that offer their members’ discounts on a variety of products and services. The discounts offered are seen by members of the discount club as a privilege and the brands’ value remains higher than the discount price.

A good example of this is Champneys Health Resorts which is a company offering premium pampering breaks. It’s important that they remain as an elite product because that’s what makes the product/services appealing, so to aggressively discount them would damage the perception of exclusivity. This doesn’t mean that the recession does not hit their business as it has other businesses but they have to approach discounts in a different way. Champneys have chosen to put a select few offers on their website but also offer a discount to members of The Rocket Marketing Group’s loyalty and membership programmes. The brand is still seen as luxury because the offers are presented in a way that makes customers feel like the discount is special.  The 15 % discount they offer The Rocket Marketing Group’s loyalty and membership programme club members is a great offer and has prompted a number of redemptions.

Businesses use loyalty and membership programmes to market their brands to consumers who are specifically looking for a special offer, enticing them to become brand loyal. The idea being, that the members of the loyalty and membership programme or discount club will become brand loyal to the businesses within the savings clubs by giving them what they want in a controlled way. These savings clubs are often offered to businesses as a free marketing option with the proviso that they offer club members a discount on their brand.

The Rocket Marketing Group operates a number of loyalty and membership programmes helping businesses create brand loyal consumers, driving both retention and revenue.

Contact Us for details of how a loyalty and membership programme (discount club) can work effectively for your specific businesses.

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

We understand it can be hard to know how best to pass on a discount to your customers, making sure the right people use them and become brand loyal. Below we discuss some of the most popular ways for businesses to offer a discount.

3rd party discount club

Loyalty and membership programmes or discount clubs are a good free marketing and sales promotion solution that enables brands to pass on an exclusive discount in a controlled manner. Discounts on the brand are only available to a closed group of people meaning the value you are giving them feels exclusive. It’s an excellent way to pass on an exclusive discount and encourage customers to create spending habits with your business, become regulars and eventually brand loyal. Loyalty and membership programmes or discount clubs are generally a free marketing tool for businesses; all you have to do is offer an exclusive discount for the members of the discount club. It is an excellent way to raise brand awareness and because it is a controlled, free marketing option there is minimal risk involved.

Discount cards

This is a widely recognised media in sales promotion used to pass on an exclusive discount to customers. Any company whatever their size or marketing budget can encourage return business through this technique, from independent hairdressers to multinational chains. This is a strong way to encourage a repeat purchase to a targeted section of consumers who are already likely to have experienced your brand.

Popular high street rental store Blockbuster worked with The Rocket Marketing Group  to develop a 2 for 1 Movie & Game Rental Card which is initially being given to members of Rocket’s Entertainment Club. The Blockbuster 2 for 1 Movie & Game Rental Card is also available for other agencies to buy from Rocket so they can use it for other partnership marketing offers/ staff incentives etc. It benefits Blockbuster as it drives loyalty to their stores throughout the UK rather than competitors. For the customer it feels like an exclusive discount because they have to show the Blockbuster 2 for 1 Movie & Game Rental Card in store when they make their purchase. The card is distributed to an initial active membership base of over 30,000 people so the targeted captive audience is considerable, heightening the chances of marketing success.

Rocket also promotes similar products like the Paris Pass and London Pass that offer discounts on multiple products/services like public transport and attractions. Plus the popular 2-4-1 Beautiful Britain which gives members of The Home & Garden Club access to some of Britain’s most beautiful gardens.

Loyalty rewards

Everyone likes to receive something for nothing so to reward a customer for using your products/services is a good way for them to gain a positive association with your brand. An exclusive reward such as a free product or even something like a free flight to Europe helps members to feel that they have received added value for purchasing a brand. A good example of this is when members of The Big Savings Club are offered a number of free rewards including a free flight to Europe for taking a trial of the club. This sales promotion technique entices people to extend their membership and also gives them a positive experience of the brands involved and the experience of using the club. In effect they get a free flight to Europe for being loyal to the brands within the club. This reward is provided by the savings club but is linked as a reward to the brands within the club. A free flight to Europe is only one of the rewards brands could offer to customers, there are also smaller ones that don’t offer as much added value but can act as unexpected special treat, such as a free mini beauty treatment.

Similar models also include points collection discount cards such as Nectar, customers can build up their discount by being loyal to their brand and those associated with them. Though this is a variation the end result is the same.

Discount voucher

Discount vouchers are another popular sales promotion technique and can be distributed in a number of ways. Some of the most popular include offering an exclusive discount through in store promotions, e-shots or loyalty and membership programmes. Discount vouchers or coupons did have a stigma attached but in recent years but as the credit crunch hit Britain they’ve become mainstream again. Giving discount vouchers away in store is a good way of rewarding existing customers and making sure they remain brand loyal but can fail to entice new customers. E-shots have been used more and more over the last few years but can be passed on to too many people and encourage too much redemption from bargain hunters. Loyalty and membership programmes give discount vouchers to a large closed group of active members who have specific interests such as entertainment or DIY. Discount vouchers distributed in this way not only appeal to existing customers but also to a selected closed group of potential new customers. To distribute the voucher through a loyalty and membership programme or discount club is a free marketing solution as the voucher is produced by the club for its members.

If you would like more information on free marketing through loyalty and membership programmes and discount clubs or exclusive rewards such as the Blockbuster 2 for 1 Movie & Game Rental Card and free flight to Europe please Contact Us today.

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

At the moment there are lots of sales and discounted goods for consumers to choose from as well as the rise of discount stores on the high street. Price reductions have almost become the norm. So what different consumer incentives are there and how appealing are they to potential customers? And are there particular brands that benefit from offering certain discounts such as 2 for 1 or a free product trial? The Rocket Marketing Group specialise in developing and managing specific or bespoke member reward programmes and consumer incentive promotions. The Big Savings Club is the largest of our reward programmes. Below are a few of the most popular offers from The Big Savings Club and the partner businesses that are involved. Have a look and decide on the type of discount that would work best for your business.

There are a variety of companies, from a range of sectors that we work with for our Reward programmes. The exclusive discounts that they offer through our clubs vary but here are a few of the most popular ones:

A one-off voucher
A voucher is a consumer incentive that can encourage customers who wouldn’t normally try your brand to sample what it offers. This is a useful tool for switching a customer’s loyalty to your brand and breaking their existing spending habits. Businesses that successfully offer vouchers through The Big Savings Club are:

Virgin Wines
D&A.

2 for 1
This is an offer we all see on a daily basis. Many supermarkets adopt this offer to up-sell certain products and encourage consumers to buy more goods. It is good for brands that offer a game or experience as it gives the customer twice as long to get into the activity and enjoy the experience. And this is likely to improve the chances of the customers making a return visit. In The Big Savings Club a 2 for 1 discount is offered by:

Go Ballistic.

10% off
This is a very popular discount for businesses to offer. And although at face value this consumer incentive doesn’t seem to provide as much appeal as maybe 2 for 1, when in the context of a more expensive product, the saving for a consumer can be quite appealing. They might not bother to take notice of a 10% discount on something that costs £1 as they only stand to save 10p but on a larger amount such as £100 for example, they would save £10 – a far more attractive prospect. Here are just some of the partners that offer a 10% discount through The Big Savings Club:

Cottages4you
The Gluttonous Gardener
Early Learning Centre.

Cottages4you are particularly impressed with how offering 10% off through The Big Savings Club is working for them. They comment that: “By featuring in both The Big Savings Club and JML VIP Savings Club, the two accounts together have generated a total transaction value of £12,746 for Cottages4you.”

Cottages4you is just one brand that currently benefits from featuring an exclusive discount in one of our guides. Above is a small sample of the exclusive discounts that we feature in our reward programmes but we’re confident that we can find solutions to suit any brand.

Contact Us if you would like to discuss the possibilities for developing an exclusive offer and including your business in one of our reward programmes.

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