Thriving in the downturn: companies with loyalty programs
by Joshua Tretakoff | EVP, Services
Advertising Age Magazine has a good article today on the retailers who are thriving in the down economy. The common thread through most of their case studies is the presence and prevalence of a strong loyalty program. Salient clips from the article:
- “[Kroger] offered gas discounts and free groceries in exchange for points earned through its loyalty-card program…data from its loyalty-card program are being used to send unique coupon offerings to specific households. “We understand and appreciate that no two customers are alike,” said David Dillon, Kroger’s chairman-CEO. “Some may live in the same city, some in the same neighborhood and even on the same street, but we know that they don’t have the same shopping habits. This level of personalization is a direct link to our customers [that] no other U.S. grocery retailer can replicate.”
- CVS: “Rob Price, the chain’s senior VP-marketing and advertising, pointed out that not all of the retailer’s programs are captured in measured-media data. Its massive ExtraCare loyalty program, for example, is not tracked. That program, which counts more than 50 million cardholders, has spawned more targeted marketing efforts, with promotional offers at the register, coupons, e-mail and direct mail.”
There’s also an anecdote about how certain companies who are definitely hurting the most, like Pottery Barn, are rolling out a loyalty program to try to turn the tide. Overall, yet more good reason for retailers to embrace loyalty.
