Prize Promotion & Loyalty Schemes Must Be "About Serving Customers"

Top Quote Prize Promotions Agency, NDL Group give their advice regarding the best use of prize promotions to attract new customers. End Quote
  • (1888PressRelease) January 18, 2012 - Businesses were warned that retaining customer loyalty must be of the priority over gathering data about 'potential new' customers. Delegates at the recent Loyalty World conference were told that understanding the primary purpose of loyalty schemes is vital in current economy. Many firms undervalue incentives for existing customers such as loyalty points, vouchers and/or prize promotion concepts. Instead, they may be missing the target by using loyalty schemes to primarily gather fresh data - data about 'new customers' who may never actually materialise.

    The warning came from none other than the European chairman of Aimia, the group behind some of the best known supermarket loyalty cards in the UK today. Their speaker Richard Baker is the former CEO of Boots and COO of Asda. He argued that in the current economic climate, companies must refocus on providing a better service to their customers, with loyalty schemes at the forefront of their campaigns. The group's own research indicated that the majority of 19-29 year olds prefer to use businesses which have loyalty schemes of some description. Baker told delegates the number one priority should be to provide a more rewarding experience for existing customers. He also stated he believed some firms seem to have lost sight of this all together, focusing instead on the data aspects of promotions. Businesses were therefore warned to ensure they are getting the balance right in favour of serving customers over data since they "can no longer rely on past drivers of growth".

    Although consumer spending has seen some slight improvements in the past year, economists do not believe the fundamental outlook has yet changed to realign with pre-recession patterns. Existing customers must feel valued and loyalty schemes should be doing this by incentives which are genuinely consistently targeted and enticing promotions. The message overall was that retailers are not likely to be able to rely on the type of positive but transient consumer spending trends seen before the global downturn and therefore must hold onto their existing customer base in order to survive and grow.

    "We know that customers do value well managed reward schemes, and their loyalty in this respect does directly influence their purchasing decisions. The most important thing to realise is that whatever type of scheme, prize promotion, points or voucher system, it has to be tailored to customer's expectations and aspirations. Our prize management services include digital delivery, with a precise fit to the demographic group involved. The work adds value to each company's promotion strategy, and increases its effectiveness. We're able to generate and re-enforce stronger branding messages. Moreover, we demonstrate that the brand is responsive to its customers, and we maintain a level of excitement about the products," said a spokesman from London-based prize management company NDL Group.

    To find out more about how NDL's prize management expertise could benefit your business, call the team for a free initial consultation on +44 (0)207 428 1212. Information about their prize promotion services can also be found online at:

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