Haslemere Rewards retail loyalty card
Launched in November 2005, Haslemere Rewards is a loyalty card scheme supporting and promoting Haslemere’s and its villages’ unique mix of small independent businesses. The scheme, the first using Savvy UK’s smart card technology (Click here for weblink), started with 20 businesses. After six months, there were 31 outlets and over 4,000 Haslemere Rewards cards.
After the Market Town Healthcheck had been completed, the Haslemere Initiative undertook a feasibility study to consider the potential of a loyalty scheme to give Haslemere a competitive edge. This research concluded in early 2005.
Businesses were engaged in the process to help shape the scheme. The preferred option was for a single card incorporating individually tailored loyalty schemes for each participating outlet.
The brand of ‘Haslemere Rewards’ was created and business partner Savvy UK tailored the technical elements to Haslemere’s needs. The scheme offers a branded loyalty card to independent businesses that would not normally be able to afford a conventional loyalty scheme. Cleverly, its chip technology allows up to 48 individual businesses to each operate in different ‘pockets’ of the card and control their own rewards and discounts to the customer. The cards were given a value of £5 (to incentivise sales and ensure they were valued by customers) and individually branded for participating businesses.
The goal of a ‘pilot’ of 20 businesses was achieved in September and there was a ‘soft launch’ to test the technology and begin promoting Haslemere Rewards before the launch date.
The project was launched on 22nd November 2005 and brought with it local and national media coverage including BBC South Today, ITN News at Ten, Radios 4 &5, The Evening Standard, The Telegraph, and the Retailer Magazine. The scheme’s success is evidenced by another 11 participating businesses, including 3 from the outlying villages, with over 4,000 cards being used.
The innovative project has already exceeded expectations with many businesses reporting increased revenue and footfall. The Haslemere Initiative, Waverley Borough Council and Haslemere Chamber of Trade are supporting Savvy and other market towns in developing similar schemes in other areas.
Need, community involvement and future prospects:
Haslemere’s 2003 Healthcheck’s consultation (involving almost 2,500 adults and young people) revealed that Haslemere was suffering economic decline with empty shops and a lack of community spirit -see www.haslemere.com/healthcheck . The Economy Group felt there was a need to do something to address the decline and the idea for a loyalty card scheme emerged.
This was reinforced in 2004 when the Haslemere Initiative undertook interviews, directly with retailers and business owners, as part of the Tourism Southeast Tourism Guidance Notes Pilot. Businesses wanted to work together to restore the town and surrounding villages as an attractive thriving centre. The scheme generates a community spirit amongst businesses and has captured the imagination of residents who want to support local businesses. Cards are also being made available at no cost to people on low incomes.
The businesses involved have met together sharing ideas and concerns (another benefit of the scheme) and will continue to do so. A focus group is looking at new ways of using the scanners and the earned rewards - (e.g. trading points in the car parks, using points between linked businesses and having cards to support local schools and charities).
Innovation and quality delivery:
The scheme offers a branded loyalty card to independent businesses that wouldn’t normally be able to afford a conventional loyalty scheme – such as the ‘Nectar’ card. The scheme is unique compared to other town loyalty schemes because it uses chip technology with data stored and read directly from the card. This is also completely different to conventional ‘swipe’ cards that add details to a reader on a computer. The Chip technology allows individual businesses to operate in different ‘pockets’ of the card (up to 48) and control their own rewards/discounts to the customer.
Haslemere Rewards has encouraged rapport and communication within the business community.
Customers are encouraged to shop locally and see Haslemere businesses giving something extra. The flexibility of the technology allows retailers to choose points or discounts, and spending bands so that high and frequent shoppers can be better rewarded. Retailers can automatically reward spending on quiet days or special occasions, for example on July 4th businesses are running an ‘Independent’s Day’ with double points.
The success of the scheme is dependent on effective promotion and this has been done with flyers, newsletters, window stickers, point of sale material, a website and use of press releases and editorial.
Funding:
Funding and future viability:
The project has only been possible due to the partners ability to work together.
The funding:-
Expenditure
Scanners & 4,000 loyalty cards £18,400
Set up costs, marketing, newsletters, literature, design costs
PR, Project Management Costs £14,500
£32,900
Income
Investment by 30 businesses £18,400
Waverley Borough Council Partnership Fund £ 7,800
Haslemere Chamber of Trade & Commerce £ 2,000
Business sponsorship £ 5,000
TOTAL £33,200
Additional in-kind support has been received from a number of local businesses and other organisations. This project was initially a pilot scheme running for 15months. After January 2007 it is expected that marketing and newsletters will be funded by the businesses themselves with investment from advertisers and additional sponsors.
The project has greatly benefited from the advice, support and funding from a range of partners including Waverley Borough Council’s Economic Section, the Chamber of Trade and individual businesses. This support will continue and the concept of the scheme is expected to grow with other local towns adopting the concept. This will enable there to be co-ordinated “shop locally, save locally” campaigns.
For more information, contact Ms Melanie Odell. E-mail: initiative@haslemere.com
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