![]() consumers hold 3.3 billion memberships in customer loyalty marketing programs. Growing membership is not the issue especially when you must have the card to shop without paying a higher price.As per the 2015 ColloquyLoyalty Census, U.S. ![]() Simply giving sale prices that they used to get without a card doesn’t equate to generating loyalty. It happens when they see fulfillment of the value equation and a great experience. Loyalty is given by the customer to a retailer when they continually choose that retailer over they many choices they have. ![]() Retailers, especially grocery retailers, will have to someday learn that the customer owns loyalty. The issue with that is generally, it doesn’t return value to the consumer. He believed that “Every customer is our best customer.” What are commonly referred to as loyalty programs in the grocery industry are generally nothing more than gimmicks to collect data. The retailer I grew up with had the same philosophy. “I believe in giving the very best deal every day, and this has been my philosophy for years.” Tony Orlando says it all. ![]() Just think of those grocers that have those kinds of brands. If your brand doesn’t have a compelling, differentiating culture, then that is the first step to succeed in this arena.ĭrive a unique, “gotta-have-it”/”gotta-shop-there” brand, even (or especially) in grocery. The “brand” culture is a huge driver of loyalty. We can all think of the obvious examples where this is happening. Retailers of all product formats must engage their shoppers in unique and compelling ways to drive true loyalty. That certainly doesn’t exhibit a loyal following of a particular retailer. This doesn’t drive loyalty, as shoppers simply join the programs of all retailers at which they shop. These programs only succeeded in giving mass, untargeted discounts because shoppers still feel the need to join these programs for fear of paying regular prices. Prior to mobile taking over the developed world, 99% of retail “loyalty” programs had not secured the true loyalty of their customers. Albertsons eliminating loyalty card program – Oregon Live.Bulking Up: The 2013 COLLOQUY Loyalty Census – COLLOQUY.Led by 70% growth in department store membership – retail flexes its loyalty marketing muscles 2013 COLLOQUY Loyalty Census shows – COLLOQUY.Are people actually joining loyalty schemes because the economy is recovering, as the report says, or do they simply want more bang for their buck? Could apparently lower attrition rates be due to people living longer, indicating new members don’t replace older ones and artificially make membership appear high? The latter might also contribute to lower activity as people age, perhaps shopping less in the places they shopped when younger (and were more mobile). Some conclusions raise further questions. Albertsons, however, notably abolished its card in favor of offering "great" prices to all customers.ĬOLLOQUY wonders why only 9.5 of 21.9 memberships (the average number per household) are currently active. Revitalized engagement includes Safeway giving members discounts plus coupons based on past purchases, and Fred Meyer sending coupons based on expenditure. "The overall focus must shift from acquiring new memberships to better engaging the customer base," COLLOQUY advises, adding tha "increasingly sophisticated programs" are "revitalizing engagement with existing members while attracting new participants." Overall membership has increased by 26.7 percent.ĬOLLOQUY says "the number of active memberships (defined as members engaging at least once in the preceding 12 months) has grown in the previous two years." However, the study found that the percentage of active memberships in relation to total memberships actually slipped from 46 to 44 percent "which suggests either new programs can’t keep members engaged, or that both new and existing programs are failing to strike a chord."ĬOLLOQUY lists six possible reasons, with analysis and recommendations for change (or not). Restaurants grew by an "explosive 171 percent," airlines by 14 percent. Specialty is now close to passing airlines into second place behind financial services. Bulking up: The 2013 COLLOQUY Loyalty Census, reveals saturation in supermarket loyalty programs with a one percent drop in enrollment over the past two years.ĭepartment stores have increased loyalty program membership by 70 percent since 2011, drug stores by 45 percent and specialty retailers 26 percent. By Bernice Hurst, Contributing Editor, RetailWireĪ new survey shows loyalty in specialty, drug, department stores and restaurants increasing while groceries decrease.
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