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.

The British public’s spending habits have changed in the last year, not only with how much they are spending but what they are buying. Consumers expect a bargain and there are plenty of sales on the high street to cater to this. But the changes in peoples’ lifestyles extend beyond the brands they’re buying, as it’s also impacting on the way they spend their time. Striving to save money is no longer a taboo and there is an increasing amount of consumers having money saving fun.

Possibly the simplest example of money saving fun is to make something yourself; this can be anything from clothing to food. The drop in restaurant trade and increase in supermarket profits suggests that more people are cooking dishes and meals themselves – both saving money and spending time on a new hobby. Back in December 2008 electrical store Comet noticed a rise in sales for gifts that were designed to save people money. Sales of coffee machines and breadmakers were up 433% and 1275%. Coffee machines can help Brits save up to £500 on regular trips to the coffee shop and breadmakers produce around three loaves for less than the price of one in the supermarket. Chocolate fountains, were popular in 2007 but in December 2008 were bottom of the wish list, below microwaves and toasters.

In December, Bob Darke, Commercial Director at Comet commented: “Christmas shoppers are taking advantage of great deals with many opting for practical gifts for friends and family that will help them save money in the longer term.  This week we’ll have many more deals on a wide range of electrical products to appeal to all our customers.”

The horticultural trades are also performing well in uncertain times and gardening is being taken up by the younger generation as they develop their gardens for social use. The recession is greatly impacting on what young adults are spending their money on and the statistics showing this indicate a definite social and cultural change and a trend towards consumers having money saving fun.

The key findings of the Horticultural Trades Association (HTA)  GIM Garden Intentions 2009 survey reveal that: 29% intend to spend more time working in their garden this year, 25-34 year olds are most likely to increase the amount of time working on their gardens (44%). The reasons given for spending more time working in the garden include: prospect of better weather this summer (48%), growing interest in gardening (37%), plans for a major garden overhaul/ redesign (23%), intentions to grow more fruit and vegetables (22%), working less and spending more time at home (18%). For relaxing and entertaining 31% of respondents plan to increase their use of their garden this year. Once again it was the 25-34 year olds that are most likely to spend more time relaxing and entertaining in their garden (42%) this year. 9% also stated that they are cutting back on more expensive pastimes and 8% cutting back on holidays away from home this year – and spending more time in the garden.

We can see the country’s need to save money; even if it means a lifestyle change it doesn’t mean people are enjoying life any less – Brits are actually having fun spending time saving.

The Rocket Marketing Group understands the need to have fun whilst saving money and operates a range of loyalty and membership programmes that offer members exclusive discounts on a range of products and services. The programmes include The Home & Garden Club, The Entertainment Club, and The Big Savings Club. The loyalty and membership programmes all mean that members can have money saving fun, helping them to enjoy themselves more often. The success of these loyalty and membership programmes show that people are actually having fun spending time saving.

Contact Us if you would like to discuss how a loyalty and membership programme can work with your business to encourage consumers to use your products/ services, however they like to spend time saving.

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.