Loyalty programs boost sales for Target
In competitive retail environments, finding ways to drive customer loyalty is always problematic. It requires a lot of consideration from a lot of different angles. Your pricing, your customer service, your store layout, your marketing strategies, and your special offers all need to be high-functioning and in sync in order to promote loyalty to your particular business.
One of the ways that ChainDrive can support this is through supporting gift cards and loyalty programs. Store-specific debit and credit cards are one popular way of building loyalty, and they have proven to be successful too.
A recent news story published by Minnesota Public Radio examines Target’s success with their REDcard. Reporter Martin Moylan takes a look at how, strangely enough, offering an impressive 5% discount on purchases using this card has actually improved overall success, writing that ” REDcard discounts do end up boosting Target’s profits, especially by helping the retailer retain its best customers.”
So what can retail professionals learn from Target’s success with the REDcard? For one, prices aren’t everything. When your competitor has low prices, it can be really stressful to match or try and beat them, but if you can find a way to ensure that the overall number of customers increases enough, then you’re on a road to success. It’s a slippery slope, however; a retail giant like Target might have more wiggle room to test out such a program than others. With that being said, careful analysis of buying habits, overall sales, prices in the market, and your profit margins can help you determine a strategy for a “pilot test” of a loyalty program. Consider using ChainDrive to help you out!