Commercial benefits

Many loyalty schemes can demonstrate increases in revenues for operators and it is evident that loyal customers tend to spend more than their promiscuous counterparts.

As is usual in almost all businesses, the 80-20 rule applies and it has been shown that a small percentage
of customers account for a high percentage of profit.

Research indicates that loyal customers spend twice as much as promiscuous shoppers in their first choice store and in the grocery market loyal shoppers also tend to have larger shopping budgets.

There are several other key benefits of loyalty schemes including;

  • Improved customer communication
  • Ability to track and monitor shopping habits
  • Ability to influence customer behaviour
  • Improved promotional activity with focused and targeted campaigns
  • Improvement in the supply chain efficiency

In addition, well-collected customer data can be analysed to reward loyal customers, ensuring that marketing spend is targeted effectively.