Prologic. Loyalty Leader.
May 2015


Join ProLogic and PSK Foodtown for a Discussion on Successful Loyalty Programs for Independent Retailers

Join featured speakers Guy Keller of ProLogic and Noah Katz of PSK Foodtown on June 3rd at 2pm ET for the latest NGA webinar—“Loyalty and the Independent Retailer”. Guy and Noah will be discussing how ProLogic and PSK Foodtown have worked together for over a decade to develop and implement loyalty marketing strategies which have enabled PSK to succeed in an increasingly competitive market—and how your organization can realize the same results!

The presentation will run 45 minutes, followed by 15 minutes of Q&A. See the NGA Live Online Learning Center for more details and to register to attend.
 

The Top Three Reasons for Grocers to Use a Loyalty Marketing Program

Loyalty marketing programs can be valuable tools for grocers to help better understand their shoppers and provide these shoppers with relevant offers to grow their purchases. Below are three key reasons that retailers should adopt loyalty marketing programs:
  • Identify your top shoppers
    Loyalty marketing programs enable retailers to understand the structure of their customer base. Retailers can identify their top shoppers and learn their purchase habits, giving them insight into how well their assortment meets the top shoppers’ needs. Grocers can also study quantitative metrics about each category of shoppers, such as whether the number of top shoppers is increasing or decreasing and whether the average basket sizes of top shoppers are growing or shrinking.

  • Reward your best shoppers
    A retailer’s best opportunity to grow sales is to increase purchases by its top shoppers. Many grocers erroneously focus their marketing spend on attracting new shoppers, who invariably are low spenders and high defectors. A more effective strategy is to redirect rewards and discounts to top shoppers to increase their basket size and frequency. Give these top shoppers powerful incentives to come back, visit more often and spend more at your stores.

  • Influence your shoppers’ behavior
    The best loyalty marketing programs reward shoppers not just for showing up, but for changing their shopping behavior. For example, retailers can offer extra points for high-margin items, or continuity programs that encourage shoppers to visit their stores more frequently. Many retailers discover that increasing the frequency of their top shoppers’ visits has the effect of increasing their average transaction size as well.

A recent news article cited that 95% of Kroger’s growth over the last decade has come from winning more business from existing customers. To learn more about how you can achieve growth from your existing shoppers, visit our website.

For a white paper on loyalty metrics for grocery retailers, click here.
 

Survey Reports That Shoppers Prefer Discounts on Grocery Over Fuel Rewards

In a recent survey of 1,000 U.S. grocery shoppers performed by consultant LoyaltyOne, 72% responded that they prefer discounts on groceries over those on fuel. Of the highest grocery spenders (over $700 per month on groceries), 83% preferred grocery discounts over fuel rewards, while among the shoppers in the second spending tier ($300—$500 per month on groceries), 74% favored discounts on groceries over fuel.

These survey results appear to signal a desire on the part of consumers for more balance between fuel rewards and grocery discounts. Many grocery loyalty programs today are heavily focused on fuel rewards, which may not be as attractive today compared to past years when fuel prices were higher.

Read the LoyaltyOne press release here.

ProLogic can assist retailers with their promotional strategy, achieving an optimal balance between fuel rewards and other promotions such as basket-level promotions, points programs, targeted offers and continuity programs.

For information on the range of promotions supported by ProLogic’s loyalty platform, visit the promotions page on our site.
 

Industry Expert Recommends That Supermarkets Focus on Specific Categories That Represent Their “Core Draw”

Brian Woolf, an expert on loyalty marketing in the supermarket industry, suggests in his April article that retailers consider “longitudinal” loyalty marketing strategies which concentrate on specific categories favored by their top shoppers. With shoppers now routinely splitting their shopping among multiple retailers, it’s unrealistic for supermarkets to expect to be a “one-stop shop” for all of a shopper’s grocery purchases (“latitudinal loyalty”). Some categories, such as paper products and diapers, are no longer part of the core draw for supermarkets to attract shoppers.

Instead, supermarkets should carefully consider which categories comprise their core draw and how they might be able to strengthen them further, building “longitudinal loyalty” in these categories. Furthermore, retailers should strive to identify new categories of core draw, perhaps adjacent to their existing key categories. As Brian Woolf states in the article, “The more compelling and differentiated your core draw, the stronger is your attraction magnet in today’s environment of split shoppers.”

Read Brian Woolf’s full article on longitudinal loyalty here.

For a case study detailing how one of ProLogic’s retail customers uses its loyalty platform as “the ultimate tie-breaker”, click here.
 

ProLogic Upgrades Reporting Tool to Cognos 10

ProLogic’s customized reporting capability is a major component of the value that we offer retailers, and the IBM Cognos tool provides a flexible and easy-to-use tool for this function. Earlier this year, we upgraded to Cognos 10, the latest version of the reporting tool.
 
This new version gives retailers enhanced reporting capabilities, including more custom report creation, dashboards, and advanced formats for graphing and charting. Retailers will benefit with more comprehensive and meaningful reporting that is tailored to their loyalty and business metrics.

For more information about ProLogic’s reporting capabilities, click here.
 

ProLogic Welcomes McCaffrey’s as Newest Loyalty Customer

McCaffrey’s, a chain located in Pennsylvania, is ProLogic’s newest customer. McCaffrey’s new loyalty program is being built around the McCaffrey’s Value Card, which provides personalized targeted offers to shoppers based on their past purchases.
 
We welcome McCaffrey’s to the ProLogic family and look forward to helping them grow their business with their new loyalty program.
 
 
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