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.