Retailing Lessons from Loyalty Programs Around the Globe

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Discuss the CVS Extra Care loyalty program and whether the program is a source of shopper insights that can be leveraged in multiple ways to be successful.
The CVS Extra Care loyalty program was created in 2001 and is known in the United States as the largest loyalty-card program today. By developing the loyalty program CVS is able to identify buying behavior of their customers which enables them to create unique marketing techniques. CVS has created three target marketing audiences from the information they retrieved from their retail information system (RIS), they are: Caroline, Vanessa and Sophie. Each of these audiences identifies the typical CVS customer. This is a great resource to identify shopper insights. Caroline is
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Seven-Eleven Japan’s (SJI) nanaco program is a prepaid rechargeable loyalty program that allows tied to a smart card or mobile phone. Many consumers in Japan don’t use credit cards, so this program is a way for them prepay for this program and the benefit is they can obtain points for purchases made in the Seven-Eleven Japan stores as well as Denny’s. Seven-Eleven Japan awards points by products to boost some brand loyalty that can be conveniently purchased at their stores. By having the nanaco program SJI is able to determine the products that fit each regional as well as individual store. By expanding the places the nanaco can be used allows greater consumer insight on buying behavior.

Discuss the reasons that Wal-Mart has chosen not to have a customer loyalty program. The reason Wal-Mart did not create a customer loyalty program is because they have been successful in gaining insights from research companies, analyzing transactions and by managing categories of consumers. Like many other companies Wal-Mart segments their potential customers into categories. Although, rather than using data received from so called “loyal” customers, Wal-Mart grouped their shoppers by demographics. Rural, Hispanic and baby boomers are just a few of the groups Wal-Mart targets. Wal-Mart uses geography to develop a local marketing strategy in attempt to make consumers feel like Wal-Mart is the community store. As they say, “if it’s not broken, don’t fix it.” Developing,

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