Using Loyalty Programs To Create Customer Intimacy

When a grocery store client asked LoyaltyOne Inc. why it was not selling very much meat at one of its urban locations, the Air Miles parent company mined data from its loyalty card program and found that the retailer’s key customers in the area were students, young singles or lower-income couples.

After the Air Miles parent suggested that the supermarket incorporate more single-serve and lower-priced cuts of meat to its mix at that outlet, beef sales rose 12%.

The example illustrates how the geeky world of deep data analytics can help businesses forge a bond of emotional loyalty with consumers, according to The Loyalty Leap, a new book by Bryan Pearson, LoyaltyOne’s chief executive.

Canadians love loyalty programs — about 94% of them belong to at least one. And Air Miles is the largest loyalty program in Canada, with more than 10 million active accounts, representing two-thirds of Canadian households.

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