The value of tailor made coupons and their benefit to each individual shopper builds with the retailer s increasing understanding of the contents of the consumer s shopping basket and relies heavily on the magnitude of dollars spent in the store. The actual value for the shopper of turbo charged vouchers and tailor made coupons are far more substantial than the percent thank you discount offered on the total purchases at Tesco.
The more a consumer spends in the store the more information the store is collecting about consumer tastes and shopping habits allowing it to direct more relevant rewards toward such loyal customers. Thus an increase in Chinese Overseas America Number Data dollars spent in the store not only increases the dollar value of the coupons received by the customer but also yields higher redemption rates reflecting the massively improved relevance of the tailor made offers to each individual shopper based on loyalty card data. For example at Tesco redemption rates on individual tailor made coupons vary between percent and percent as compared to the usual percent or less redemption rates. It is therefore not the percent payback to the consumer that makes the loyalty program work for the grocer but rather the turbo charged vouchers and the total value of tailored coupons that shoppers stand to lose if they go elsewhere.
Store switching costs created this way increase the spending and loyalty of shoppers. For retailers lacking the capability of using information about their card holding customers and turning these data into tailor made individual shopper specific propositions loyalty systems are no more than an expensive gadget. but not sufficient to offer substantial rewards to generate more loyalty from shoppers. If competing retailers copy these substantial rewards shoppers will not be incentivized to stay loyal to only one retailer—promiscuous shoppers would not be worse off than extremely loyal shoppers if rewards were linear and uniform across retailers.
發表於 2024-3-12 18:28:39
