Perth’s independent retailers are at the heart of a challenge to the supremacy of the UK’s shopping giants.
High street chains and major supermarkets have long had the means to reward customers through card-based loyalty schemes that tie consumers to their brands and stores.
Small businesses have always struggled to compete as the costs involved with setting up such schemes are beyond the means of individuals.
Now, however, Fair City businesses have been offered the chance to hit back and challenge them at their own game with the launch of UK-first custome loyalty scheme.
It is hoped that providing independent businesses with their own card scheme could boost the sector vital in a city such as Perth, which boasts one of Scotland’s most vibrant offerings of independents.
Almost £100,000 has been secured from the UK Government’s Innovate UK funding body to stage a three-month trial in Perth involving three prominent local businesses.
The scheme’s impact on award-winning delicatessen Provender Brown, wine retailer and exporter Exel Wines and Blend Caf will then be scrutinised.
If successful, it is hoped the programme could then be in the running for an additional £1.2m of funding enabling it to be rolled out to interested small retailers across the city.
The scheme has been developed by Miconex, which works to promote firms through its “Mi” digital platform.
“This UK-first concept could be ground-breaking for both local businesses and our High Streets,” said chief executive Colin Munro.
“Independent businesses to date have found it difficult to provide integrated loyalty schemes because they all use different till systems and the process to analyse customers’ spend is too costly. Our easy-to-use scheme alleviates this issue by using technology to collect individual spends and stores the data in the “cloud”.
“Invest in Perth (a Perth and Kinross Council project) are playing a major role in boosting the fortunes of the Perth city region so it is fantastic for us to be able to acknowledge their support to us and their commitment to the local community by having the concept tested for the first time in our home city.”
Shoppers in Perth will be able to pick up one of the loyalty cards in any of the participating businesses or download the “MiRewards Perth” app.
Diane Brown, director and owner of Provender Brown, said: “We are very excited about taking part in this scheme.
“We’ve had great loyalty from many of our customers for nearly 10 years now, so it will be great to be able to offer something back. Many of Perth’s retailers are struggling and I hope that this will give customers an incentive to shop with independents rather than online or in supermarkets.
“Through the scheme we can reward existing customers and encourage new or infrequent visitors to the shop.”
Exel Wines general manager Russell Wallace is also excited to trial the loyalty card and is currently deciding upon the individual rewards that will be offered by his business.
He said: “The bottom line is always about being able to attract new customers and retain those that do shop with us.
“Creating a localised business community and specifically a loyalty scheme with added benefits is an ingenious way of allowing us to broaden our reach and thank our customers.
Sundeep Sallins, manager at Blend, added: “Our motive for taking part in the scheme is not just about business, but about knitting the community together.”
Should the project successfully attract phase 2 funding, Miconex aims to roll the scheme out to around 30-40 businesses in Perth and replicate the scheme in at least two other towns or cities.