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Loyalty programs for furniture retailers
Question:
You need to look at this through the eyes of the customer and then the answer will come to you. I have done this for a paying customer so I can’t, in good conscious, give it to you for free. Good luck. <G> Russ
Response:
Hi Lawrence, >The big challenge in developing this type of program for the furniture >industry is the low frequency of purchase. I would appreciate any >thoughts on a program that builds loyalty either through a communication >program or, a frequent "flyer" type program.
Another way to enhance loyalty is to make the product different. Suppose your client produced furniture in special colours no one else had, anyone wanting coordinates would have to come back. With computers and colour specification systems like pantone, perhaps customerss can be given the service of picking their own colours. Your bedroom the colour of your favourite flower, your kitchen the hue of your most loved blouse etc. In a little village in England called Kilburn, there is furniture panelling in stately homes as well cupboards etc. Over each piece they produce runs a little carved mouse, which stands out like a chocolate mouse. Search their work, and somewhere you find a mouse scurrying. For loyalty it’s probably the cat’s whiskers. John John Block Creative, marketing aware work which Freelance Copywriter talks rather than blandly bores, actively promotes your product, International and aims to be the best Welcomes Dollar and Sterling, in your market sector.
Response:
: My company specializes in direct marketing for retailers. Recently, we : have been approached by furniture retailers to develop a frequency : program similar to Airmiles and Club Z. : The big challenge in developing this type of program for the furniture : industry is the low frequency of purchase. I would appreciate any : thoughts on a program that builds loyalty either through a communication : program or, a frequent "flyer" type program. What I’ve seen in practice is a special notice mailed to previous buyers, promoting a "private sale", exclusively for invited "special XYZ customers." Something like "because you purchased x amount of furniture from us in the past so many month, we wish to reward our most valuable customers with extra-special savings during this very exclusive event." Marketing to increase the loyalty of furniture-buyers is also addressed in the new book, "Predatory Marketing," which is in book stores now. Matthew
Response:
:My company specializes in direct marketing for retailers. Recently, we :have been approached by furniture retailers to develop a frequency :program similar to Airmiles and Club Z. :The big challenge in developing this type of program for the furniture :industry is the low frequency of purchase. I would appreciate any :thoughts on a program that builds loyalty either through a communication :program or, a frequent "flyer" type program. :Or, do you know of any good books on loyalty programs for retailers? An :excellent one I’ve read so far is from Brian Wolf – "Customer Specific :Marketing". Only problem is, the book focuses on food retail and more :importantly, on retail with traditionaly high purchase frequency. A excellent bood on building retail customer loyalty is "Up The Loyalty Ladder" by Murray Raphel and Neil Raphel (1995). The Michaelson Company customer loyalty builders for free information about increasing your customers’ loyalty please visit our website at http://www.increase-loyalty.com
Response:
: Certainly mail to your customers with a concrete offer AT LEAST once a : quarter (with furniture though, maybe once a quarter is enough.) But : that goes without saying. Sure it’s not a loyalty program like Delta : miles, but at least you’re keeping in touch. I wonder what kind of loyalty furniture stores expect to get, when they are constantly "Going Out Of Business" or "Were Closing Our Doors". <G>! — Jim Dompier IslandSoft http://www.lava.net/~islesoft/
Response:
>My company specializes in direct marketing for retailers. Recently, we >have been approached by furniture retailers to develop a frequency >program similar to Airmiles and Club Z. >The big challenge in developing this type of program for the furniture >industry is the low frequency of purchase. I would appreciate any >thoughts on a program that builds loyalty either through a communication >program or, a frequent "flyer" type program.
For the furniture industry, why not give *nice* personalized coupons with a purchase? Depending on the price range, maybe something like a gold $100, silver $50, Bronze $25. Further, make it transferable, thus a friend of a customer can receive the discount. As a bonus to the customer, he/she receives the same discount. As for something like Airmiles, Airmiles is not just for specific retail sectors, so why not look to expand any loyalty program (homesteader-miles, mover-miles) to related sectors; major appliances, home furnishings, home improvement -remodeling, home maintenance. If there are any new home developments, see about enrolling these companies so that anyone taking a tour will receive X number of miles (or coupon), buying a home XX number of miles (or coupons). Also enroll apartment complexes Hope this helps your thinking!
Response:
>My company specializes in direct marketing for retailers. Recently, we >have been approached by furniture retailers to develop a frequency >program similar to Airmiles and Club Z. >The big challenge in developing this type of program for the furniture >industry is the low frequency of purchase. I would appreciate any >thoughts on a program that builds loyalty either through a communication >program or, a frequent "flyer" type program.
Certainly mail to your customers with a concrete offer AT LEAST once a quarter (with furniture though, maybe once a quarter is enough.) But that goes without saying. Sure it’s not a loyalty program like Delta miles, but at least you’re keeping in touch. For all the stuff I bought retail last year, I don’t recall a single "thank you" from anyone. Or a newsletter. Or a "we miss you" letter. Such simple things. Dumb. No I take that back; I did get a postcard. From my dentist. Gotta wonder what his ROI is on mailing those things out are… (and yes my teeth were fine.) >Or, do you know of any good books on loyalty programs for retailers? An >excellent one I’ve read so far is from Brian Wolf – "Customer Specific >Marketing". Only problem is, the book focuses on food retail and more >importantly, on retail with traditionaly high purchase frequency.
Check out "the guerrilla marketing handbook" by Levinson. The introduction relates the experience of Jordan’s Furniture, Boston MA. They started in 1973 with sales of $500,000 and at the time of writing was up to $100,000,000 a year. They’ve got free car washes for customers that pick up their own furniture, a snack and t-shirt shop (proceeds go to charity), and a $3 million amuesement ride out back. Sounds more like a Chuck E. Cheese pizza joint. But if you think I’d complain if I did $100 mil a year in revenue, you’re crazy. Now I now that’s not a loyalty program like a frequent flyer deal, but you can bet that people that buy there and are impressed with the service will buy again. I guess that’s more loyalty-thru-excellence. This is a problem with us marketers; our client sees something United Airlines is doing and wants to do the same thing. But sometimes things don’t adapt well. I agree frequent buyer programs work great for high-frequency purchases, but not always for infrequent purchases. Does your client sell anything at high frequencies? Can they? Or perhaps a frequent buyer tie-in with another related non-competing company. Or a "trade in your miles for dollars off" co-op with a regional airline. Just ideas. Hope this helps. At least read the chapter I talked about above and tell your client about it. aloha! al hulaton [Al, glad to see you back! Watch those m&ms, they're addictive. Wouldn't want to see you in m&mer's anonymous 
-JG]
Response:
My company specializes in direct marketing for retailers. Recently, we have been approached by furniture retailers to develop a frequency program similar to Airmiles and Club Z. The big challenge in developing this type of program for the furniture industry is the low frequency of purchase. I would appreciate any thoughts on a program that builds loyalty either through a communication program or, a frequent "flyer" type program. Or, do you know of any good books on loyalty programs for retailers? An excellent one I’ve read so far is from Brian Wolf – "Customer Specific Marketing". Only problem is, the book focuses on food retail and more importantly, on retail with traditionaly high purchase frequency. Thank you, Lawrence Galoni
Response:
: My company specializes in direct marketing for retailers. Recently, we : have been approached by furniture retailers to develop a frequency : program similar to Airmiles and Club Z. : The big challenge in developing this type of program for the furniture : industry is the low frequency of purchase. I would appreciate any : thoughts on a program that builds loyalty either through a communication : program or, a frequent "flyer" type program. : Or, do you know of any good books on loyalty programs for retailers? An : excellent one I’ve read so far is from Brian Wolf – "Customer Specific : Marketing". Only problem is, the book focuses on food retail and more : importantly, on retail with traditionaly high purchase frequency. : Thank you, : Lawrence Galoni Yes, you are right, loyalty programs work better when there is a continuous relationship or frequent transactions. Hence their success in credit cards, airlines, banks, etc. But don’t give up hope. Get a copy of The Loyalty Effect by Frederick F. Reichheld, published by Harvard Business School Press. He runs the loyalty practice at Bain & Company. It provides an excellent explanation of how loyalty relates to retention, profits, etc. It won’t have your program outline, but it will definitely be worth your time. Incidently, I have no connection with the author or publisher. — TAYLOR CONSULTING GROUP Your Market Research Partner John W. Taylor 805.595.9427