Advice from the inside
Got a question for retail buyers that you’re too shy to ask? We’ll do it for you. Promo Edge’s Retail Research Center surveys buyers around the country on your questions, and we’ll print their answers here. Stores get the promos they want, and your work hits the aisle instead of the scrap pile. Supermarket, drug, mass merch – choose your channel, and fire away.
Q: Why and how should my brand participate in frequent shopper programs?
A: More than 30 percent of consumers have joined frequent shopper programs since retailers began offering them a decade ago, and half of consumers say frequent shopper cards influence their brand decisions. Grocers use programs to reward customers with hassle-free savings and to reach consumers in the aisles, where most brand decisions are made. Nearly 60 percent of grocers consider these programs very important.
Programs differ from chain to chain. To get your brand in, retailers recommend you ask each chain’s buyer for an information package on program guidelines and options. Buyers also can help coordinate timing so your brand isn’t in with your competitor’s.
Brands often participate as a featured product in the store’s circular, which some retailers mail directly to frequent-shopper customers. A temporary price reduction is usually required. To encourage impulse purchases, retailers like attractive prices combined with P-O-P – especially freestanding displays, but also floor graphics and shelf talkers. Some grocers support participating brands with in-store announcements or mentions in radio spots. Other high-tech support includes kiosk programs like Norwalk, CT-based InterAct’s, in which customers receive computer-generated offers, customized by the purchase history stored on their cards.
Frequent shoppers also like coupons: Two-thirds of cardholders use their cards and coupons at the same time.
