For some time, loyalty cards in grocery stores were largely a means to capture share of a consumer's purchases by offering discounts on promoted products.
Today, while the broad discount aspect remains true in many stores, card programs are becoming more sophisticated: tailoring offers to individual consumers based on actual purchase history; linking in-store and online purchasing histories; delivering relevant offers through a variety of communication channels; and sending out alerts when product recalls happen.
Last month, Price Chopper in New York State sent out recorded phone messages to roughly 12,000 holders of its AdvantEdge cards who had purchased Sam Adams beer. The brewer issued a recall over concerns that bottles might contain glass defects or small fragments of glass.
"We are able to isolate the folks that need to know when it comes to food safety and security," Mona Golub, a spokesperson for Price Chopper told The Daily Gazette. "We feel an obligation to help customers know the information they need to know and the response on the part of customers has been quite grateful."
The purpose of the card, said Ms. Golub, "is to give people more of what they want." In the case of a recall, she added, "it's a way to provide people with valuable information at lightning speed."
Discussion Questions: How close are retailers today when it comes to tapping the full potential of loyalty card programs to drive sales and meet the needs of consumers? What card program capability offers the greatest opportunity to deepen the relationship between consumer and retailer?