The Value of
Information
From
Melody
Vargas,
Part 3 in a Series on Loyalty
Retailing
It seems innocent.
Retailers offer frequent shopper cards to their
customers so that they can better understand them.
Understanding their customers allows retailers to make
better assortment decisions and improve the efficiency
of the supply chain.
A more efficient supply
chain and better assortment allow retailers to target
their customers with goods and services that meet the
customers' needs. Meeting needs creates loyal customers
and drives retail sales.
Everyone wins, right? It
depends.
When the data is used
strictly to aid in category management, it can be a
tremendous asset. If the retailer shows a lack of
respect for customer privacy (as we examined in part 2
of this series) or customer intelligence, it won't
inspire loyalty and may become an annoyance.
How many frequent shopper
cards do you have in your wallet right now? Chances are
if you live in an area with more than one supermarket,
you have several.
The consumers are not
showing loyalty to the store by signing up for their
cards. They are showing that they will do what they have
to in order to get the discounts. They are submitting to
being tracked and are willing to present their cards in
order to keep their food bills within budget.
Active anti-card
privacy group, No-Cards
Shoppers, believes
frequent shopper cards insult shoppers and do not really
save anyone money. More and more customers are beginning
to agree. Several local news stations around the country
have run tests in response to disgruntled shoppers'
claims that retailers inflate prices only to offer
savings equal to the old price.
For the remainder of the
article, please press
here.
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