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CULTIVATING CUSTOMER LOYALTY

27 July 2007

DANNY BLYTH LOOKS AT SOME RECENT DEVELOPMENTS TO HELP OPERATORS DEVELOP LOYALTY AMONG CUSTOMERS, TAKING ION SOME EXPERT ADVICE FROM TOP FRYERS

Today's technology is always throwing up possibilities for operators to better market their businesses. However, many higher tech tools are still at the early stages of development and precious few present a clear cut proposition with a high probability of increasing trade. Nevertheless there are some avenues out there that are worthy of a little investigation.


On line activity appears to be a mixed bag. While there's precious few services of Fish & Chips sold via the net there's quite a bit of exposure to be had through having a website with one piece of publicity often leading to others and a snowballing of listings.


As for selling online though the frying trade (with the notable exception of Pizzas) remains a way behind the online retailers of non-food items. It's worth noting here that as people are increasingly buying more books, shoes and the like online they are getting used to the PC and what the net can do for them. Things may change - but not at all soon.


According to a recent report by PricewaterhouseCoopers on the UK's online retail market, it will take another four years until internet shopping is likely to account for 10% of the entire market. Nine out of ten sales therefore will contnue to take place away from the screen.


Meanwhile, PC technology is catching on in the Fish & Chip sector, notably among those who run loyalty card schemes and/or operate customer databases with incentives and promotions. Here there truly are some success stories to be heard.

 

 

 

 


One of the new entrants here is Michael Neill of the Frying Squad in Northern Ireland who in February this year relaunched his scheme so that each customer has a 'tag' that fits on their key ring. In a nutshell, customers receive loyalty points for each purchase, eventually entitling them to free meals. The scheme also allows Michael to track individual customer visits, how often a person comes in a week, month and the like. Should he not come in for a while, the Frying Squad can send out a leaflet or special offer to that customer
to encourage them back.


"People simply collect points as they would with a Tesco Clubcard," says Michael. "It's a reward for loyalty, a way of making sure the same customers keep coming back again.
"I find it very useful and although there is a cost to it all it is profitable. And the customer appreciates the fact that he's getting something back. It's a way of recognising people. After all that same customer can go elsewhere into any other Fish and Chip shop and not be rewarded for his loyalty."


One operator with over ten years experience of loyalty schemes is Mark Petrou of Petrou Brothers, the current Fish & Chip Shop of the Year.
"My eyes were first opened to the possibilities by Bill Shaw of Kiremko-KFE," he says. "Bill clearly pointed out how you just can't expect to open the doors and have customers walk in - and how you've got to fight for them these days.

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Kerry Food Services - Dinaclass Refill