I am searching to find a resource that can give me a "benchmark" or list of the top (perhaps by
volume) loyalty or loyalty card programs currently in force. Any advice or ideas would be greatly
Tesco (Europe) Clubcards
Chart House Restaurants
Grohe Professional Club (B-to-B, Germany)
Microsoft Advantage Club
Boots the Chemist (U.K.)
Kawasaki Riders Club
CVS Extra Care
Hallmark Gold Crown
There are lots of them around, and most of them look pretty similar. I've attached articles of mine on the subject from one to two years ago (see Fuzzy value propositions = confusion marketing and One-trick ponies and customer loyalty.) The bottom line on how successful loyalty programs can be depends pretty substantially on how their sponsors elect, or don't elect, to use the customer data these programs generate.
One of my key sources for the uses of information gathered by customer clubs and loyalty programs is my friend and colleague, Brian Woolf (www.brianwoolf.com). Brian is President of the Retail Strategy Center, Inc., and a fountain of knowledge about how companies apply, and don't apply, data generated through these programs.
In an October 22 Peppers & Rogers newsletter, for example, Don Peppers quoted Brian in his article, "The Secrets of Successful Loyalty Programs":
"Loyalty program success has less to do with the value of points or discounts to a customer, and much more to do with a company's use of data mining to improve the customer experience. Top management hasn't figured out what to do with all the information gleaned. You have all this information sitting in a database somewhere and no one taking advantage of it.
You need to mine the information to create not only relationships but also an optimum (purchasing) experience. The best loyalty programs use the customer data to improve not only promotions, but also store layout, pricing, cleanliness, check-out speed, etc. Firms that do this are able to double their profits. When these elements are not addressed, all you're doing is teaching the customer to seek out the lowest price."
This was first published in August 2002