Friday, June 29, 2007

More on Grocery Loyalty Programs

The other day we commented on how Albertsons is canceling their frequent shopper program. No longer will they issue cards that shoppers swipe to receive discounts. In a nutshell, they cancelled the program because they weren't using the data.

Our comment was--what a shame that they didn't take advantage of the rich data to better serve their customers AND build more profitable, more long-term relationships.

Well, I came across some research that validates this premise. See the following article from "Promo Magazine", titled: Frequent-Shopper Data Improves Direct-Mail Offers: Valassis

The key finding from the research: "Using data from frequent shopper programs to target direct-mail offers can boost sales nearly 26%, according to research from direct-mail and FSI giant Valassis."

Perhaps Albertsons abandoned their program prematurely. Or maybe they just need some new marketing thinking!

TGIF. Enjoy your weekend. Happy 4th!

P.S. Valassis (the company that performed the research) offers their results at their website. The study is called: Swipe Past Common Benchmarks. How Frequent Shopper Card Data is Pushing Direct Mail Results Way Up. Good data for any consumer packaged goods marketers.

3 comments:

Ron Shevlin said...

I have no idea what thinking went behind Albertson's decision to discontinue the program.

But my suspicion is that the problem can be traced right back to the start. When someone (or the plural of that) didn't: 1) account for the investment required to access and analyze the data on an ongoing basis, and 2) change their basic marketing and pricing processes to account for the loyalty program.

They may have come to the conclusion that making those investments now was just too big a bite to chew off.

Suzanne Obermire said...

Please see the following correction from Albertson's Director of Communication and Public Affairs:

"Hi Suzanne

I just wanted to send a correction for your blog posting. Albertsons, a SUPERVALU company, does have its Preferred Card program in place. Albertson LLC, which is a separate company, dismantled their program. People confuse us a lot as we just split last year, so wanted to let you know that in California, the Preferred Card program is still live and kicking, and we have no plans to take it away.

Thanks!"

Chuck & Shirley Bartok said...

Susan,

Thank you for your efforts.
I would enjoy the PDF mentioned.

Please forward to my e-mail

chuck.bartok@sbcglobal.net

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