Do loyalty programs attract the least desirable consumers?


I found the following Byron Sharp Perspective on Loyalty Programs thought-provoking.  Note particularly:

“Marketers have tended to use the loyalty program concept as an all-purpose marketing initiative, when in fact loyalty programs attract the least desirable consumer for a supermarket wanting to increase its business – the ones who already are loyal and do most of their shopping in your store,” he said.

“These shoppers actually have the most to gain – something for nothing. They are more likely to learn about the loyalty program and put in the effort to sign up – because they are already shopping there and most consumers join a program in-store.

“Infrequent shoppers – the customers a supermarket would like to have change their behaviour and shop at an outlet more often – are actually less likely to get around to joining up.”

About Arie Goldshlager

Customer Insight, Customer Strategy, and Innovation Consultant
This entry was posted in Customer Loyalty, Customer Retention. Bookmark the permalink.

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