A Company Can Use Raffles to Increase Costumer Loyalty and Retention
There are many ways in which a company can use raffles to increase their costumer loyalty and retention. First and foremost, we have to make sure the consumer is actually getting their groceries at reasonable prices. If there are increases in prices, make sure the costumer knows why.
If the costumer keeps paying more and more for the same items with no apparent reason why, they will almost always leave the place to look for better deals. An example of this method could be the following: if the prices of a fruit go up, under the price label, give a brief explanation that the fruit is out of season and is harder to stock during this time. It could also be beneficial to post tables explaining when certain fruits are in season.
Now on to the raffle. I think the most simple way to implement raffles to grocery stores is giving one raffle ticket per $50 ($25, $100, depending on the certain store and what they are selling) dollars spent. Everyone puts their raffle tickets in a container and one ticket is picked every weekend. The rewards would have to be actually worth it otherwise people will lose interest and go to other stores. Some examples of rewards that could be given could be: gift cards to the store who held the raffle, merchandise from the store, and discount coupons.
The key where is to keep consistency, making sure to hold the raffles frequently enough that people will still be optimistic toward winning, otherwise, like I said, people will soon not care and lose interest. Also make sure to make the rewards worth working toward as well. If the winner gets a lousy 5% coupon, nobody’ going to bat an eye. But if they get a $100 gift card to the store, people will make sure to put forth an effort to win it. There should also be events happening every so often to keep the costumers constant attention to the possible winning, such as seasonal rewards, or extra special rewards. It does not have to be one winner either, there could be a second and third place reward that gets a smaller yet still valuable prize.
Yet another great idea could be a fluctuating monetary reward that increases or decreases with the number of tickets in the jar. As you start out as a smaller business, tickets might only add $1 to the pot of total winnings, but if it was a very popular store such as Walmart, the tickets could add $10 or more dollars to the pot with each addition ticket added. The key here is to make sure the consumer is actually getting a deal, and to be generous with the winnings. If the costumers see that the rewards are worth getting, more people will be happy to participate thus increasing how much the store itself makes as well.
Other things to consider when thinking about costumer retention is cleanliness and quality of experience. Many Walmarts, for example, are dirty and dimly lit leaving the costumer feeling that the overall shopping experience was of lower quality. The staff must also be attentive and helpful as well. The costumers experience relies heavily on the ease and convenience of getting assistance when they need it. Subpar employees make an otherwise happy shopping experience into an ordeal. In conclusion, just make sure to run a high quality business, making sure that the costumer comes first, and gets actual good deals.