Rigters Supa IGA Brings Community Retailers Together to Offer Discounts to Shoppers

About

Location: Geraldton, WA Australia
Owner: John Rigter
Operations Manager: Stuart Bain
Difficulty: Moderate
Store Specs: Queens Supa IGA – 3400 sq meters (approx 36,500 sq ft)
Rigters Supa IGA – 1400 sq meters (approx 15,000 sq ft)
Wonthella Supa IGA – 1200 sq meters (approx 12,900 sq ft)

Strategy

To promote our new loyalty card, two years ago we approached about 25 local businesses and asked if they would like to offer a discount to customers who showed our loyalty card at their businesses. They could offer any discount they liked and we would then advertise it at our shops, on our website, and on our Facebook page. Very quickly we had businesses approaching us asking to be a part of it. As a result of these partnerships, we saw a spike in loyalty card sign-ups by customers.

We now have nearly 50 locally-owned businesses as part of our Rigters Rewards Program, and recently saw another spike in sign-ups when we highlighted the growing number of local businesses on board. Some of our partners have mentioned that about half of their customers now present our loyalty cards at their businesses for discounts.

The partnerships benefit our stores, our partners' stores, and the town's shoppers. They allow us more opportunities to advertise our business by getting in front of potential customers at our partners' stores. Our customers receive more value with their rewards card, and the program drives home the "Shop Local" message throughout the town, all at very little cost to us. All discounts can be seen here.

Numbers

Nearly 50 locally-owned businesses participating.

WHY IT WORKS

For Our Shoppers

• Save money. Our shoppers can now save even more by taking advantage of discounts offered by nearly 50 other local businesses. 
• Support the community. The program drives customers to other locally-owned businesses, helping to keep the dollars in our community.
• Demonstrate local loyalty. The partnerships create a loyal network between our business and the other smaller locally-owned businesses.

For Our Store

• Free advertising. We now have our stores advertised in nearly 50 other local businesses.
• Brand ambassadors. Locals are asked at nearly 50 other locally-owned businesses if they have Rigters Reward Card, encouraging them to sign up to receive other discounts.
• Powerful independent rewards. It makes our Reward Card more powerful than the ones offered by chain supermarkets.

Tactics

1. Identify partners. Make a list of local businesses that you would like to approach. Ensure their missions align with your core values.
2. Provide examples. Create a sign-up sheet with examples of discounts the businesses could offer their customers.
3. Prepare in-store ads. Discuss signage options for your store and for the partner businesses with a local sign maker or printer so you can estimate costs. Determine who will pay for which signs (you or the partner business).
4. Recruit partners. Approach the potential partner businesses and explain the program and benefits to their business. Explain the importance of them asking every one of their customers for your loyalty card. This will drive people to your business and encourage repeat customers at theirs.
5. Set goals and launch. Set a minimum number of partners you want for an official launch and create a Facebook event for the in-store launch.

Pricing

We spent about $1,000–$2,000 to put bold signage at each of our three supermarkets to highlight this program to customers. We also paid for an A3 Frame and poster for each loyalty partner to display in their shopfront/front window when they signed up, which cost about $50–$60 per partner, but we thought this was an exceptional value to be able to advertise our loyalty card in all these businesses around town.

Pro Tip

• Make sure that you set a list of core rules and guidelines of what type of businesses you want to partner with before launch. For example, limit the businesses in the same sector (e.g. no more than two auto body shops), no chain stores, same core values, good reputation, minimum discount offer, etc. These guidelines will remove the grey area when you receive new applications and also help set expectations for the loyalty partners.