Gambling on loyalty Cards - insights by Steve Gray

In response to our post on Loyalty Cards, Steve Gray has added the following insights:

• There is inherent value in the loyalty programme itself - millions of consumers like collecting points (Clubcard, Boots, Nectar etc) and go out of their way to do so. The programmes more than wash their face for the retailers who deploy them
• They also create a valuable asset for their owners : Nectar was sold for around £450m, if ever Tesco sold Clubcard (as opposed to dunnhumby) it would be worth something similar or more
• There is, as you say, additional value from the data - it can be used to deliver a more personalised shopping experience (via range, promotions and personalised offers)
• Currently, supplier-partners aren't really able to help retailers to "build a comprehensive picture" as they tend not to have any useful data on individuals (supplier data tends to be anonymised research from small sample groups). This might change as brands start to invest more in direct to shopper programmes, more retailers enable digital coupon redemption and sales tracking other than via their closed loop programmes

* Its high time the plastic was replaced by a phone or by linking to the customer's debit or credit card - not a technology barrier but slow uptake as few retailers have people who know how to get this done easily.