The Role of Loyalty Cards in Market Towns Hannah Bowden, amt-i, Action for Market Towns Research Consultancy Research Report. Sponsored by Savvy UK Ltd

Research Objectives & Methods To understand the role of loyalty cards in market towns and how they can be used to maximum effect. A literature review and interviews with a sample of existing (or soon to be launched) schemes. Technology typology used to categorise schemes

Role of Loyalty Cards Loyalty cards defined Cards examined in the context of: – Marketing and Promotions – Planning and Capital Investment

Reasons for Implementing External threats Increase Footfall/Trade Increase a sense of community Publicise and celebrate independent business Multiple existing loyalty cards Need to be as competitive as possible

Reasons for Chosen Approach No Tech or Low Tech – Cost – Assumptions about asking businesses to pay – Consultation with businesses – Coopertition Hi Tech – Loyalty vs. Discount – Track rewards – Monitor spend patterns – Use as a marketing tool

Implementation Idea Generation Working Group Established Stakeholders Identified and Contacted Consultation and Networking Funding Promotions Launch

Operations Working or Steering Group people One or more part time council officer(s) Set up time few weeks – 6 months Ongoing administration – Part time administrator – Existing council staff – Businesses

Promotion Report lists the range of promotions employed Key themes: – Personal contact – Promotion important but doesnt have to be extensive – Two fold – to customers and businesses – Start and long term – Local press

Costs Wide variation reported £560 – 200,000 Larger programme of promotion Administration support and assoc costs Cost of discounts Card sales, reader rental and offsetting through sales

Funding Sources Town/ District/County/Borough Council Regional Development Agency Local Strategic Partnership Chamber of Trade & Commerce Local businesses/retailers Corporate Sponsorship

Customer Rewards No Tech – Discretionary Discounts; percentage and items offered on – Discounts on presentation of the card – Money off vouchers – Monthly draws Hi Tech – Points awarded for spending £1 = £1 point – Points saved up and exchanged for Vouchers – Discretion on min purchase level and how vouchers used

Customer Data Personal data collected via application forms No tech and Low tech experimented with manually collecting customer spend information Some schemes have set up databases for marketing purpose are but not yet using them Linking personal data to spending patterns cited as industry best practice

Outcomes Generally positive response Only one formal evaluation which was part of wider programme of promotions Informal feedback through personal communication common Business support used as a gauge of success

Recommendations and Conclusion Report ends with recommendations around the key sections Concludes with a consideration of industry best practice and how independent businesses in market towns may use Loyalty cards to remain competitive.

For more information... Please contact: Hannah Bowden Business Development Manager amt-i, Action for Market Towns Research Consultancy Tel: