Retailers have spoken about the importance of cultivating customer loyalty after a report showed the growing value of regular customers.
Business leaders spoke to FFD after a study published by commerce tool provider Square showed the contribution of regular buyers to retailer revenues had increased every year since the start of the Covid-19 pandemic.
The report added that more than a third of UK consumers planned to shop or dine in-person more often at local businesses this year.
Sangita Tryner, owner of Nottingham’s Delilah Fine Foods, said creating and maintaining loyalty was “the most important part of my business”.
“Without loyal regular customers we wouldn’t exist,” she added, stressing that she had always set out to create “the Cheers bar of the deli world”.
“People don’t just come in for food, cheese and wine – they want a bit of company, a bit of love,” Tryner said.
“The first man who spent money in Delilah 21 years ago still comes in for the same Americano.”
Tryner added: “You have to be better than the next person who opens up. We are forever improving what we do and asking for customers’ opinions.”
Paul Castle, managing director of Flourish Foodhall and Kitchen, which has sites near Bath and Bristol, also believes in canvassing his patrons.
Taking a data-driven approach to loyalty, he stressed the importance of a well-managed engagement initiative.
“Our reward-card customers come in almost twice as often as others and spend 25% more each time,” said Castle.“It is the primary focus of our marketing team.”
Flourish offers those signed up to this scheme rewards such as eventinvites, personalised offers, exclusive prices and even product giveaways.
“We can see customers who haven’t been in for a while and try to recapture them through offers.
“We get postcode locations so we can see where we’re not getting penetration in an area, and we get ages so we can play to our audience.”
Castle said loyalty schemes should create a club-like experience, adding: “It isn’t a five-minute job.”
Guild of Fine Food managing director John Farrand said indie retailers should find means beyond pricing to hook customers.
“If you ensure your regulars are not only discovering quality products but learning how to enjoy them from your informed team, they will spread the gospel,” he added.
“You don’t hear many people telling their friends that Tesco is the best place to go for a top-notch cheeseboard or a perfectly crafted coffee.”
This article first appeared in the June-July issue of Fine Food Digest.
