Being handcuffed to a shopping cart isn’t the best way to build trust. But, that’s how customers feel about so-called supermarket loyal shopper cards. That’s because the premise of the cards violates a basic principal of attraction marketing.
Two-thirds of a typical supermarket’s business is done by 20% of its customers, according to the Food Marketing Institute. In the years since loyalty cards first premiered in 1979, that ratio has stayed about the same. Retailers’ intention of building more volume from more customers has resulted in just getting roughly the same volume from the same customers at a discount–to the retailer.Continue Reading