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Justin King comments on the competitive advantage provided by Loyalty Data |
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In a recent interview Justin king claims that those supermarkets that don’t grasp the benefit of using loyalty cards and the wealth of insight they create are going to be at a serious disadvantage. He believes that without customer insight they rely too heavily on untailored promotions. King said that ‘those without data’ were being drawn into ‘ever more promotions’ because they lack the sophisticated databases to tailor special offers to particular customers. The Sainsbury’s CEO was commenting after the retailer announced pretax profits up 17.5%. He stated that just 32% of spending at Sainsbury’s was on promotions compared with an industry average of 37%. He added that last year’s launch of "coupon at till" where customers are given targeted vouchers based on historic purchases and Tesco’s doubling of Clubcard points had marked a turning point in the industry. Tesco and Sainsbury’s main supermarket rivals, ASDA and Morrison, have resisted calls to have loyalty schemes and last week Morrisons promised that they would continue with the increased number of special offers and discounts, while Asda have been focused on one-off vouchers in newspapers.
Steve Gray, the Executive Chairman of Mobilze commented “The next big challenge for loyalty is creating a consistent user experience and access across all channels including Mobile Loyalty. I believe that Mobile will provide the next level of competitive advantage through its ability to be an intimate, immediate and most importantly convenient consumer channel. “
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