Question Freddie Business & Management

Marketing strategy that can ensure customer spending

With an increasing number of retailers collapsing into administration, the most recent being BHS, name one marketing strategy that can ensure customer spending?

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Answer Internal Staff

When collapsing into administration in August 2016, BHS had a total of 1.2 million British customers; however, in recently published information on the company, an indication is that it is the international and online business of the company that had been profitable, hence securing the sale and online relaunch of BHS (Armstrong, 2016). In light of this, further UK high-street stalwarts may wish to consider adopting best practices in order to increase customer spending. One way this can be done is through the marketing of the company, where a strategy of consumer ‘loyalty’ programmes can be recommended as a way to not only ensure customer spending, but further encourage repeat custom and an expanded customer base (Jahshan, 2016). Marketing agency ICLP (2016) published findings at the end of September to indicate that over 60 per cent of shoppers would be encouraged to shop more often, or spend more, at a certain store or brand if they were to be offered discounts on future purchases (i.e. by the provision of points cards, where points generated from purchases can result in money off purchases). The success of such can be seen with the Boots advantage card, where roughly 18 million Britain’s are in possession of one; 18 times the amount of customers boasted by BHS before its collapse (Campaign, 2014). However, in the present day, when society is moving towards the ‘internet of things’, it is essential that such a strategy allows for consumer interaction over digital platforms, as well as instore spending, where online sales often equate to a large chunk of customer spending. Thus, as long as loyalty schemes facilitate digital use, they make for an ample way of ensuring customer spending, and repeat custom.


Armstrong, A. (2016) ‘BHS to relaunch in the UK online.’ The Telegraph. [Online] 25 September [Accessed on 6 October 2016]
Campaign. (2014) ‘Forward Thinking: Maximising the feel-good factor.’ [Online] [Accessed on 6 October 2016]
ICLP. (2016) ‘ICPL Channel Loyalty.’ [Online] [Accessed on 6 October 2016]
Jahshan, E. (2016) ‘Loyalty programmes key to increasing consumer spend: survey.’ Retail Gazette. [Online] [Accessed on 6 October 2016]