from Paul Taylor, managing director, Catalina Marketing
Sir; As MD of the company that helps Somerfield run its Saver Card scheme, I read with interest your piece on loyalty cards (The Grocer, February 19, p44).
It is not the points mechanics of the cards you feature that generate loyalty. They are just one approach to increasing card use (others include spend & save and two tier pricing) and therefore the volume of customer data gathered. Some of the most effective schemes are not based on a costly ‘points win prizes’ approach.
Irrespective of the mechanic, successful loyalty programmes use the insights from customer data to improve their shopping experience. They change behaviour with frequent targeted offers - such as the biggest spending customers getting a targeted incentive every week.
This is the approach taken by Somerfield’s Saver Card. It borrows from the best US two-tier frequent shopper programmes where card users receive discounts combined with regular targeted offers at the checkout.
Some one million Somerfield customers receive at least one of the 19.5 million voucher combinations each month.
Furthermore, this more-for-less approach, without being liable for accrued points, means the stakes are lower but the rewards are just as high. As many retailers have found to their cost, loyalty is a double edged sword. It’s extremely powerful when employed intelligently but extremely expensive when not.
Sir; As MD of the company that helps Somerfield run its Saver Card scheme, I read with interest your piece on loyalty cards (The Grocer, February 19, p44).
It is not the points mechanics of the cards you feature that generate loyalty. They are just one approach to increasing card use (others include spend & save and two tier pricing) and therefore the volume of customer data gathered. Some of the most effective schemes are not based on a costly ‘points win prizes’ approach.
Irrespective of the mechanic, successful loyalty programmes use the insights from customer data to improve their shopping experience. They change behaviour with frequent targeted offers - such as the biggest spending customers getting a targeted incentive every week.
This is the approach taken by Somerfield’s Saver Card. It borrows from the best US two-tier frequent shopper programmes where card users receive discounts combined with regular targeted offers at the checkout.
Some one million Somerfield customers receive at least one of the 19.5 million voucher combinations each month.
Furthermore, this more-for-less approach, without being liable for accrued points, means the stakes are lower but the rewards are just as high. As many retailers have found to their cost, loyalty is a double edged sword. It’s extremely powerful when employed intelligently but extremely expensive when not.
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