Retailers Enlist CPG Manufacturers in Loyalty Effort

Discussion
Dec 08, 2004
George Anderson

By George Anderson


Some retailers are beginning to take a different approach with their loyalty card programs. Instead of simply serving as a means for consumers to receive a promotional discount and drive short-term volume results, retailers have begun working more closely with consumer goods manufacturers to target messages that speak more directly to the needs of cardholders and create an on-going perception of value.


Sean Seitzinger, director of retail marketing for Coca-Cola, told CRM Buyer that his company believes this shift in focus will create a triple win situation with consumers, retailers and manufacturer coming out ahead.


Coming out ahead for retailers and manufacturers goes beyond just scanned purchases, said Mr. Seitzinger.


“Retailers love to see business results,” he said, “but they won’t move forward without customer satisfaction. Almost every piece of research that goes into a launch has a business piece but also has a consumer attitudinal piece.”


According to CRM Buyer, “Coke’s current joint efforts with retailers are focused on family and friends. This fall, many of the promotions Coke ran via grocery and drug loyalty programs were linked to football tailgating, because this is an activity in which friends and family get together. When an Albertsons grocery store on the West Coast wanted to have a county fair event for its best customers, Coke contributed a dunk tank.”


Moderator’s Comment: How can retailers move card programs beyond the typical discount offer to something more meaningful for consumers? Can you think
of any retailers that have already taken their card program to the next level?

George Anderson – Moderator

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