Loyalty is not just a programme, it’s a device to identify customers. Once the retailer knows his customers, he can start to build some understanding of how they shop. Every time a customer uses the loyalty card, not only is he getting some rewards but his buying pattern is also being detected by the retailer. So, instead of doing mass campaigns and trying to assume that everybody who is 25 wants the same things, a retailer can now say that he has a segment of customers who came in to buy utility goods, another buys only luxury goods, and so on.
The retailer can thus have differentiated experiences for different customer profiles. He can actually organize his store accordingly, based on what he knows (more…)