Question

Topic: Strategy

Grocery Loyalty Card Results

Posted by Anonymous on 2/5/2004 at 4:34 PM ET 125 Points
Grocers have massively adopted loyalty cards. Does someone know about strategies for using the results of data gathered through these programs? What can grocers do with thousands of customers and their sales slips?
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RESPONSES

  • Posted by ReadCopy on 2/5/2004 at 5:04 PM Accepted
    Loyalty card information is mainly used for segmentation, they should be using them to look into consumer buying patterns, classic examples are:

    On a Tuesday, when the temp reaches a certain limit, what do customer buy ? They need to understand customers that well.

    Segmentation is by how big customer bills are, what departments are they spending in, are they weekly or monthly shoppers. How likely are they to shop in other stores!

    They can then use all the data for sophisticated DM targeting, special offers and openings.

    SUMMARY:
    Loyalty schemes should be used to build an accurate picture of each shopper.
  • Posted on 2/8/2004 at 6:18 AM Accepted
    Hi

    nobody's mentioned the uk's biggest supermarket Tesco. It's just over 10 years since they launched their Clubcard - and it's made a significant difference to their average basket value.

    googling turns up a mountain of case information
    https://www.google.com/search?num=100&hl=en&lr=&ie=UTF-8&oe=UTF-8&safe=off&...

    One of the most interesting is their 'computers for schools' programme - written up here:
    https://www.bitc.org.uk/resources/case_studies/crmtescocfs.html
    It has run successfully for several years, and ties together a loyalty programme with a community-friendly promotion

    hth

    Will Rowan
  • Posted on 2/8/2004 at 3:14 PM Accepted
    and this is well worth reading:

    Scoring Points: How Tesco Is Winning Customer Loyalty "is essential reading for all marketers, students of marketing and everyone interested in customer loyalty and customer service"

    WIll
  • Posted on 3/18/2004 at 4:29 AM Member
    You can not buy LOYALTY..loyalty cards can only be succesful in POINTS and WIN schemes for a grocery store..create a bonus scheme with points after purchase
    also analyse the combination of products they buy and give offers with this combination ie. cokes + chicken + yogurt is the most often combianation..then advertise an offer for chicken and at the same time yogurt
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