Rewards scheme MyDD Points is “months away” from launching symbol-group-backed versions. In an exclusive inter­view, Kandiah T Konesh, chief executive of MyDD Points, claimed 2,500 UK shops are now using the service, with convenience stores achieving a 15-20% uplift in total sales.

“Whatever the multi­ples can do, independ­ents can do through this programme,” said Konesh.

Features

According to Konesh, MyDD Points enables retailers to:

• Offer shoppers mem­bers-only pricing on key lines, similar to the ‘Clubcard prices’ offered by supermarkets such as Tesco.
• Give shoppers points for every £1 spent in store that can be re­deemed for goods, with the level of points and pay-out threshold set by the retailer.
• Run prize draws with entries given each time a customer spends a cer­tain amount.
• Push targeted promo­tions to win back shop­pers that have stopped visiting.
• Send out offers to clear short-life stock, helping to improve footfall, sales and waste levels.
• Sell gift vouchers that can be spent in their store.

Options

At the moment, each store runs and brands its own scheme on the MyDD Points app, but a second option is com­ing soon.

Konesh said: “We are talking to Costcutter directly, plus Londis, Pre­mier, Budgens, Today’s, Unitas and Go Local. They are all talking to us to promote as their own rewards system. There are two or three of them months away from launching our programme. Some of them may be white labelling so they can be used at any store in their group, for instance, as Costcutter Rewards, but existing DD points app customers without any further registration would still be able to use the Costcutter Rewards service.”

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The service can in­tegrate with around 30 EPoS providers, or stores can run it from a stan­dalone device. Konesh added that the service has a £250 sign-up fee, plus a £50-per-month subscription. Retailers then receive a half-day of in-store training for their teams, plus point-of-sale packs including printed club­cards, window stickers, shelf talkers, posters and hanging boards. The company also runs a three-month social me­dia campaign to promote the service to the store’s local community. An account manager also provides daily support during the first month.

Konesh said: “We count a success as when a retailer registers a minimum of 1,000 cus­tomers. These typically drive 15% of the shop’s revenue. If shops register 1,200 customers, we give the retailer the first £600 they’ve paid in set-up and monthly fees back because we know there’s no way of stopping our programme when their sales go up by 20%.”

Explaining the sales impact, Konesh said: “Registered custom­ers come to the store 10 times more than non-registered customers. It’s proven across every store we work with that promotes the service. It won’t work if you don’t promote it properly.” He added that this advice includes display­ing member prices on shelf-edge labels and promoting a sign-up offer of free points were key parts in ensuring cus­tomers join the rewards scheme.

Data

As well as offering in­dependent stores similar rewards, promotion and loyalty tools to major grocers, MyDD Points says it also offers them similar data on who their customers are. Konesh said: “Local shops might have around 20,000 customers over their trading history. They might know some by face or name, but, for most, they have not got a clue how often they visit, what they buy or why they have stopped visiting.

“A main opportu­nity [from using MyDD Points] is that shops can identify who their best customers are by most visits, highest spend and so on, and missing customers can be given specific offers.”

Stores interested in finding out more can email editorial@newtrade.co.uk with their store details and the subject ‘MyDD Points’