Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Tuesday, April 22, 2008

Shoppers cards work - really,they do

I'm not the biggest fan of "shopper" cards, and believe me, I have plenty of company out there. Check out this site, called www.nocards.org, for a taste of the opposition. Still, the FMI says cards have their value. From a news release today:


Food retailers are using technologies in numerous ways to remain competitive, meet consumer demands and become more efficient in order to improve sales and profits, according to the Food Marketing Institute (FMI) Food Retailing Technology Benchmarks 2008 report, which was released here today.
The technology study found that 48.8 percent of retailers have a frequent shopper program and 90.0 percent of their customers participate in it.

Identifying shopper needs and trip habits can lead to greater customer satisfaction, greater basket sizes and better category management. Among supermarkets in the survey, 84.2 percent claim a greater number of weekly store visits from program participants and 76.5 percent cited higher gross margins for shoppers holding frequent shopper cards.

Most grocery shoppers today have a choice of several food retailers and formats. However, consumers are making only 1.9 trips per week for their groceries, down from 2.1 trips per week in 2006. With fewer opportunities to interact with the shopper, retailers must maximize the shopping experience.
Frequent shopper programs are used to attract consumers to supermarkets. The programs provide data to the retailer to better meet the needs of the consumer. As a result, the programs improve the efficiency of store operations and provide a cost-effective way to customize product selection. Retailers maximize their selling space and save customers money through discounts when they are able to maintain an inventory that reflects the store’s demographics.
In addition to product discounts offered through frequent shopper programs, other benefits to the consumer may include:

Automatic electronic coupon deductions, 85.0 percent.

Points toward store discounts on any product, 55.0 percent.

Donations to charities, 40.0 percent.

Points towards specific free products in store, 40.0 percent.

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