SHOPPING LOCAL STARTS WITH YOUR BUSINESS!
COMMUNITY GROWTH DEPENDS ON LOCAL SHOPPERS.
The Christmas shopping season is here, and this year (like every year) you have the store furnace turned up; anxiously waiting for the front doors to swing open and stay open as the next shopper gazes on your awesome inventory! The sad truth is as the hours pass you start to get a bit sweaty, and it’s not only from the heat. How are you going to pay that next heating bill?
What can you do to compete with the impossible pricing of a National Chain, and how can they afford to offer rewards up to 5% AND the prices are already discounted? Do your customers know how much chasing a discount at a retail chain directly affects your community?
WHAT ARE THE COSTS OF SHOPPING AT A NATIONAL CHAIN?
Here are a couple facts from North American studies* regarding the major differences on community economics when a National Chain is competing for business.
- Local Businesses Generate 70% more Economic Activity than a Box Retailer.
- 3.5 Times More Wealth is Generated for the Local Economy when Money is Spent in a Local Business
- Local Businesses Produce a NET ANNUAL RETURN of $326/ 1,000 sq ft of Retail Space in their Community.
- National Chains Generate a NET DEFICIT of $468 / 1,000 sq ft of Retail Space in the same Community.
- 98.2% of Employment is directly tied to Small/Local Business
- If Canadian Families spent $10/month in a Local Store rather then a National Chain, We would infuse an extra $1 Billion Dollars into the Local Economy!
* ( BDC Canada, Stats Canada, andersonvillestudy.com, huffingtonpost.com, entrepeneur.com)
HOW CAN LOCAL BUSINESSES COMPETE?
When Economies of Scale Don’t Favor Your Small Business, Use What the Chains Will Never Have; A Personable Relationship with Great Customer Service and a Welcome Mat that Truly makes Customers Feel At Home!
Then Play Ball by Offering Programs that Tug on the Heart Strings of Money Savvy Shoppers
DO YOU KNOW THE METRICS OF LOYALTY PROGRAMS FOR CUSTOMERS?
(The answer is below if you want to skip over what you’re missing!)
Lets do the Quick Math on the following 3 Major Facts and Assume an Average Purchase in Your Store is $25, Every Customer visits 4 times/year, and the Customer Visits your store Loyally for 10 years.
- Loyal Customers Visit 90% More Often and Spend 63% More/Visit
- That means for Every 1 Visit From a NEW Customer, A Loyal Customer has spent $4.93 More (19.7% more per visit!). That alone warrants a great Loyalty Perk!
- It is 7x More Cost Effective to Keep a Current Customer than to Find New Ones (BDC Canada suggests Admin & Advertising costs average 6.3% of revenue)
- That means for every $25 spent, a Current Loyal customer saves you $11.03 in Advertising for a New Customer.
- The Customer Lifetime Value of a Customer for 10 years is $1000 ($25 * 4 visits/yr * 10 years). It would mean in 10 Years your Loyal Customer costs you 1.1% of net sales to acquire. Compare that to 44% if they only came once!
- Loyal Customers are 9 Times more Likely to Recommend your Store
- This Calculation is EASY, a Happy Customer will Advertise for you! Even if the new customer only came once, your Loyalty program just saved you $11.03 in Advertising or 44% of the $25 purchase!
With The Math Complete: A Loyal Customer Starts by Spending 19.7% More & Saves you up to an Additional 44% of a Single Sale! If you Reward Customers with a 3% Discount over 10 years, It will cost you $35.91 BUT YOU MAKE AN ADDITIONAL $197.20 ON SALES ALONE! THATS A 550% RETURN! Not to mention saving Hundreds on Advertising to get the same sale!
WHAT ABOUT THE ECONOMICS OF A GIFT CARD?
GIFT CARDS ARE A MUST HAVE FOR SMALL BUSINESS!
- Gift Cards = REVENUE EARNED WITHOUT BREAKING A SWEAT!
- How many small business opportunities come your way that Pay Cash up front for your Business to Re-Invest without breaking a sweat? Gift Cards ensure the money goes back into your Business with no Physical Work required!
- Gift Cards Are Overspent By over 33% on Average!
- Not only do Gift Cards offer Cash to re-invest, They can also earn a business over 33% more then Face Value when the Certificate is Realized!
- Since new rules were launched in 2007 around gift card expiry dates; Breakage (card balance not used) has dropped to under 2%. GET THOSE CARDS SPENT AND CUSTOMERS IN YOUR STORE!
- Over 50% of Gift Card recipients are New Customers! Remember the Loyalty Calculations above?
- These new customers are a Gift For Your Business, and a unique opportunity to show the personable side of shopping in your store!
TAKE LOCAL SHOPPING TO THE NEXT LEVEL!
Offer Loyalty Programs, Gift Cards & COMMUNITY CASH!
- Question – How do I Get Involved with Community Cash?
- If you Offer a Loyalty Card on Cardlis then you are supporting Community Cash & Additional Incentives for Customers to Shop Local!
- Setup a Gift Card for sale on Cardlis! Now Local shoppers can Spend Community Cash in Your Store!
- Community Cash matches points from ANY point program 1:1 & rewards 20 points for a”unit” program.
- Community Cash is automatically calculated for customers and shown as a $ value on the Customer Home Screen
- $1.00 Cash Credit is given for every 1000 Points earned at Local Cardlis Stores
- Gift Cards Purchased are paid by Customer & Cardlis. Cardlis Cash balances used during a purchase are settled by Cardlis and deposited in Your Bank Account by Stripe Payments at the same time the Customer Purchase is Processed, meaning that it DOES NOT COST THE BUSINESS ANYTHING EXTRA!
HIGHLY EFFICIENT, SUPER AFFORDABLE, ALWAYS CONNECTED!