Beverage Dynamics

Beverage Dynamics Sept-Oct

Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.

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By Brian Rosen Talking Customer Loyalty Programs "H ello. My name is Brian Rosen and I am a retailer!" This would be the opening remark if I were in Retailers Anonymous. My intro would continue like this, "I was the CEO of the nation's largest liquor store, Sam's Wines and Spirits, in Chicago, then I sold it, got out alive, and then I was a partner in the nation's largest retail consulting firm, and then the demons came back. I tried to stay away, I tried to refuse the draw of the beverage business, but I was drawn back in. I am now the operator of a chain of wine, spirits and craft beer stores in Chicago. I was sucked back into retail." As retailers we should not mistake ourselves for people that take the easy route. We are all fighters, thinkers, do-ers, and entrepreneurs. We are drawn to this happy business because we like long hours, moving cases and making our customers happy with that special "something" that they are truly thrilled to purchase. I am now in the wonderful position of looking out for my fellow soldiers. Having run the largest and now the smallest stores, having the experience that both provide, as well as the benefit of the PricewaterhouseCoopers Retail division, I am here to help. I want for my fellow retailers to be successful in all facets of the game: E-commerce, merchandising, marketing, buying, selling, employee and customer management. This column will be written from our perspective, a retailer's eye on a retailer's business. I will focus on current problems in the market from that perspective and simple solutions that we all can use to better our business and our lives. Today's Issue: CRM or Loyalty Program There are many customer loyalty programs that are pitched to retailers on a daily basis - from Belly, to Reward Me, to many others. These companies are built on the simple premise that the small retailer cannot manage the process on his or her own. We are too busy working in the business rather than on the business. These companies will give you all the tools, they say. This column will be written from our perspective, a retailer's eye on a retailer's business. They will give you the iPads and other tablets for you to collect e-mail addresses, and then reward the guest with a benefit for their loyalty to your establishment. It is a win/ win for us, right? Wrong! The whole purpose of having a loyalty program is to reward your customers for shopping with you and your business. And the single most important part of the process is the ability to contact the person that is loyal to you. Often, the third party systems own the e-mail addresses and often the third party system does not track the items being purchased. Those are the single most important items in a CRM program and what makes them so valuable. Something to think about: When a customer comes to you and your store they want to be there. They want to be recognized and remembered. If the customer feels there is value in giving you an e-mail address, they will. Train your staff to collect the info on a pre-printed spreadsheet or other device and manage the program on your own. This prehistoric method works very well until your systems catch up with your desires. One statistic that is good to share: the e-mail open rate for our industry is 13%. The e-mail open rate for a customer that asked to be e-mailed is 34%. That is a staggering opportunity to speak to your customers and to continue the loyalty process and spread your store's brand awareness. I BRIAN ROSEN is operating partner of Evolution Wine & Spirits, in Chicago, and is available through Evolution Speaking and Consulting. He can be reached at brian@evolutionwines.com. 6 • Beverage Dynamics • www.beveragedynamics.com • September/October 2013

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