How about frequent buyer or loyalty programs? Here's an example of how this could be working at your local grocery store:
Frequent-shopper programs are ways for loyal customers to earn money or points that will reduce future food bills. Typically the store issues membership cards, which it uses to track purchases.
Points or dollar values are credited electronically to a customer's account, much like an airline frequent-flier program. Later, the customer can exchange the points/dollars for awards:
discounts on total purchase
discounts or free products in specific departments
discounts on specific items
Some preferred-shopper programs offer bonus points to encourage customers to shop in departments they normally avoid, the deli, say, or the bakery. Customers rack up points by shopping in those sections. Electronic cards are also used to reward big-dollar and loyal customers with discounts, free products and prizes. The more you spend, the better the reward.
Keep in mind that these programs usually will ask for (and probably record) your shopping preferences and demographics. The more you tell them about you and your family, the more targeted the offers -- especially on the products you are not buying, but they would like you to.
Coupon Programs
Purchase-activated coupon programs encourage store loyalty by issuing store-specific coupons or incentives. They give breaks to customers without recording their identities or shopping habits.
Many stores, for example, have checkout coupon machines that distribute one to three coupons to be redeemed only at that store. The coupons are triggered by specific purchases and fall into one of three categories:
1.Competing brands: One of your purchases generates a high-value coupon for a competing brand. This way, you get a deeper-than-usual discount for trying a competitive product.
2.Same brand: You get coupons for larger sizes of products you already buy. This encourages you to spend more.
3.Complementary products: You receive coupons for products you haven't bought on that shopping trip, but are usually purchased in tandem, like peanut butter and jelly.
Instant Electronic Discounts
When customers buy specific products and present an electronic preferred card at checkout, cash discounts are automatically deducted from their bills. These products are often identified in mailers or fliers, and almost always by shelf markers.
As supermarket computers become more sophisticated, these discounts are expanding to include local services and restaurant discounts. Some stores also offer contests, free long-distance service and other rewards to shoppers. But, because these special prizes often are sponsored by manufacturers or hinge on buying particular brands or quantities, they vary from visit to visit. These programs will continue to expand and become commonplace.
By Phil Lempert, the Supermarket Guru
houston.webpoint.com
Regards, Jeff
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