Visible Results News - Article

HARDWARE LOYALTY PROGRAM SEES STRONG RESULTS - 4 September 2002 - Colloquy - www.colloquy.com

Vineland, NJ-based Swanson Hardware Supply announced that the Swanson's Rewards loyalty program, launched in late July, is already producing strong increases in spending from consumer and business members. The retailer's program comes in two distinct flavors, one for general consumers and the other aimed at over 500 local businesses Swanson supplies. Program participants earn points for shopping in any of Swanson's five business units -- general hardware, communications, equipment rental, equipment repair and industrial supplies. Each program also provides cash-back coupons and a range of prizes supplied by vendors. To date, average spend per transaction for consumer members is running 25% higher than non-members, while business members' average spend is almost double that of non-members. "Enrollment rates have exceeded expectations and customer feedback has been enthusiastic," said Phil Vitale, Operations Manager for Swanson. "We identified the need for a loyalty program some time ago, mainly to protect against future competition but also to boost our overall sales. We know we need to differentiate ourselves from the big-box retailers moving into this area, and a loyalty program is essential to this strategy."