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Crucial Reasons for Tobacco Scan Data Incentive Programs
Strategy

Crucial Reasons for Tobacco Scan Data Incentive Programs

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Tobacco companies are always looking for new ways to market their products, and one way they've done this in the past is through incentive programs. Margin management, customer traffic, and basket size are important justifications for being a part of a tobacco scan data incentive program. These elements support your continued competitiveness. Customers who take advantage of tobacco rebate programs shop frequently and are aware that they can find what they need at other retailers. They spend a lot of money but are very cost-conscious. 

Although cigarette margins are lower than those of other products, the volume is so enormous that profits can still be earned. By utilizing cigarette rebate programs, any dealer can compete on price without giving up all of their profit. Tobacco scan data will be used by the tobacco makers to verify sales and pay back discounts to convenience store owners. The margins on cigarettes have increased as a result. 

You might be wondering what tobacco scan data is, but don't worry! We'll take a moment to refresh ourselves and examine the phenomenon in more detail. 

What is tobacco scan data? 

Aside from the buydown you get on your purchases, tobacco companies have both put in place a program called a scan data incentive program that enables you to give your customers even more savings in exchange for your tobacco scan data. As a result, by using the Altria scan data loyalty program for instance, you may pass the savings forward to your customers without it having an impact on your margins. In fact, giving merchants pricing guidance as part of the scan data program will help them retain larger profit margins. As part of a loyalty program, businesses consent to regularly submit customer information in the form of scan data reports to manufacturers in return for financial rewards. When customers buy tobacco goods, store owners must scan their IDs, and once they have gathered data, they must give the information to the brand's manufacturer. In exchange for the store owners' participation in, say, the RJ Reynolds scan data program, the manufacturer pays them back. 

Competition utilizes incentive programs for tobacco scan data 

The tobacco scan data incentives are already being used by the large chains. Customers will have one less reason to visit your stores if you don't have this program. Customers are fully informed about the programs and prices. Since tobacco is such a costly commodity, they're looking for discounts and who doesn't love some savings? 

Tobacco traffic fuels visits from customers 

The regular purchase of tobacco is one of the factors that contribute to return visits. Fuel purchases frequently occur on the same visit. Fuel sales are likely to decrease if one item's sales decline. Additionally, attracting fuel customers to the store is crucial for overall sales performance. It is so important to prevent losing customers to larger chains that provide tobacco clubs or incentives that you cannot match. 

Customers who use tobacco purchase a lot of things 

Smokers of cigars, snuff, and cigarettes make excellent, hard-to-beat customers. They also buy a lot of other products to keep the traffic flowing, including energy drinks, soda, and beer. Numerous studies demonstrate the high worth of these customers who not only come in frequently but also make additional purchases. These regular shoppers naturally want to combine their favorite cigarettes with their favorite cold, refreshing soda or need to pick up a 12-pack of their preferred beer for their fondue party that evening—this is convenience at its best! Naturally, the margins on the other products are significantly higher. C-stores value the business they get from these customers.  

Marketing support of Altria and RJ Reynolds  

Numerous incentives are only offered to participants in the scan data loyalty programs offered Altria and RJ Reynolds. There are three tiers accessible, and each one gives your stores more discounts and a competitive edge while adding some complexity. For independent c-store dealers and family chains, there are many scan data suppliers with features that offer a straightforward method for age verification and loyalty. 

The following is a summary of the main justifications for incentive programs for tobacco scan data: 

  • Independent and family-owned chains continue to be competitive 

  • Ensure healthy margins 

  • Observe the traffic 

  • Using these applications, increase basket size 

Ready to experience these advantages for yourself but unsure of how to get started? The loyalty solutions provided by Loyal-n-Save assist in bringing your store into compliance with the tobacco scan data standards set by cigarette corporations like Altria and RJ Reynolds, enabling store owners to track and report sales numbers automatically and receive reimbursements. We can assist you in attracting devoted customers away from competitors by providing incredible customer perks, boosting earnings, earning more incentives, and gaining a competitive edge. With Loyal-n-Save as your partner, you receive the finest. We provide the technical support and direction necessary for manufacturers' shifting policies for scan data loyalty incentives. To schedule a consultation and a demo with one of our specialists, contact us today! 

This article was written by Loyal-n-Save, an omni-channel customer loyalty solution for retailers looking to increase customer retention and new customer acquisition.
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Danielle Dixon
Written by Danielle Dixon

Danielle is a content writer at Loyal-n-Save. She specializes in writing about implementing loyalty solutions proven to help a company grow.

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