Skip to main content

Should retailers give instant discounts or loyalty rewards to customers?

The work at Taggo requires me to go around talking to retailers. The common question I get from retailers is that should they provide instant discounts or offer loyalty rewards to their customers?

A quick survey on Facebook showed that 17 of my friends prefer instant rewards opposed to two who said they would like the retailer to reward them on their fifth visit.

You can take the survey at

The cost of providing the loyalty reward is no different from offering an instant discount. 

Let's take a SGD5 mug of coffee for example. Say you return to the coffee shop after your 5th time to collect the free mug of coffee, you would have spend SGD25 at the coffee shop. So the free sixth cup of SGD5 coffee would out to a 20% discount from the retailer.  That would be the same if the coffee shop gave 20% upfront. 

Sub-consciously, most consumer will do the maths and ask themselves and ask, "Why can't I have the 20% now instead of having to collect it after my 5th visit?". This itself defeats the purpose of loyalty.

However, we found that most customers would appreciate that the store gave the discount immediately. 

For the consumer, it is easier to remember that this shop gives 20% discount than to remember how many more visits do one need in order to claim that free cup of coffee. 

If the shops were to give 20% discount upon instant purchase, it is only fair that the shops get something in return. This is done usually when the shops ask their customers to join their VIP club or Fan Club. 

Most of the success we have at Taggo with the shops are those who give straightforward discounts with no other messy qualifiers to enjoy the discounts. All they need is to join the shops' fan club and get the cashier to check them in. 

Customers get the discount, the shops get new fans plus a wall post and sponsored stories which advertises the check-in for all the customers' friends to see.

We do discourage shops to put in messy qualifiers, like giving the discount after multiple visits or benefits that only occur at certain times/date, for customers to enjoy instant discount as these qualifiers can be perceived by customers to be put in place to prevent them, the customers, to enjoy the discounts in the first place. 

Customers today are spoilt by the Internet and Facebook where they can get instant results and gratification. Why shouldn't this instant gratification be awarded to customers too?


Popular posts from this blog

Why is Ramly Burger banned in Singapore?

Yahoo Singapore ran an article of the Ramly Burger by highlighting that it is ban in Singapore.

Yet, the writer from Makansutra failed to address the most important issue of why the Ramly meat patty is banned in Singapore.

A search online easily did highlight that the famous Malaysian meat patty is banned by the AVA but didn't go into details.

Wrote Arlina Arshad for The Straits Times in January 2004,

"But the importing of beef and beef products from Malaysia is not permitted, said theAgri-Food and Veterinary Authority (AVA).

Selling and supplying them without a permit is also an offence, and offenders can befined as much as $50,000 or jailed two years, or both, said the AVA."

In May of the same year, another article highlighted that a man was even charged in court for "smuggling" the Ramly burger in 2004.

"The AVA said that meat products processed in Malaysian food factories which it had notapproved were banned here.Suzali was yesterday jailed for four month…

Did She Run Or Did She "Just Fake It" For Adidas?

Andrea Chong, a Adidas appointed influencer, posted a photo of herself in the middle of the Standard Chartered Singapore Marathon 2015 and captioned how she was "all smiles" during the run.

Unfortunately for Andrea or the PR agency, one of her readers checked her bib number #75148  at the Marathon's website only to find it to belonging to somebody else.

That somebody else is Kuvin Kuar, a intern at Edelman PR and the bib number had a status "DNF" or did not finished.

This raised the first red flag as one of the rules stated that "A Participants is strictly not allowed to transfer his or her race entry to another party".

This cascaded into perceptions that Andrea herself did not even start or complete the race and was only "planted" by Adidas or the PR agency, Edelman PR, to look pretty in the marathon.

Marketing Magazine noted that Adidas declined to comment about the incident which lead to further speculation that Andrea was possibly just …

Kudos To Huawei 2 Year Warranty For P9 Series

When it comes to smartphones, I think I am jinxed.

For my history of owning smartphones, every time it comes close to the end of the two year contract with my mobile service provider. This time round, it happened to my Huawei P9.

All of a sudden, the LCD screen sort of decolourised. I thought it was a temporary issue but the decolourisation lasted for a few hours. Then the nightmare began.

The touchscreen couldn't be touched. This made it the smartphone a brick.

I thought the Huawei P9 only had one year of warrant. With my contract ending in mid-year, I thought I would have to wait it out till the contract ended and allowed me to buy a new phone under a contract.

Luckily, a friend reminded me that the phone came with a 2 year warranty.

So I decided to go to the Huawei service center, right smack in the center of the city, to see if my phone is under warranty and if Huawei would honour their 2 year warranty.

Thankfully, Huawei isn't as popular as the Samsungs or Apples, and the …