GraphiCard loyalty programme boosts Swanson's sales
US-based Swanson Hardware Supply (part of the True Value group) has reported strong increases in spending from both consumer and business members of its GraphiCard loyalty programme, provided by Visible Results.
The Swanson's Rewards programme, launched in late July 2002, has two distinct offers: one for general consumers, and another aimed at over 500 local businesses which Swanson supplies.
Programme participants can earn points in any of the firm's five business units (general hardware, communications, equipment rental, equipment repair and industrial supplies.) Using the patented GraphiCard technology, in which updated points data and special offers are displayed on the card itself, the programme provides cash-back coupons and a range of prizes to encourage the customer to return to the store again.
Member sales up According to Swanson, the average spend per transaction for consumer members is running 25% higher than non-members, and business members' average spend is almost double that of non-members.
"Enrolment rates have exceeded expectations and customer feedback has been enthusiastic," said Phil Vitale, operations manager for Swanson. "We identified the need for a loyalty programme some time ago, mainly to protect against future competition but also to boost our overall sales."
Differentiation Vitale explained, "We need to differentiate ourselves from the big-box retailers moving into this area, and a loyalty programme is essential to our strategy."
A number of loyalty providers were examined but it was the GraphiCard's ability to have its face re-written at each transaction - and be used as an advertising medium - that decided Swanson on using Visible Results' programme.
The firm has been able to swap advertising space on the cards for rewards and prizes from suppliers and programme partners.