NEW YORK -- Hybrid loyalty programs -- those that focus on more than one objective -- are especially critical for grocery retailers, according to Deborah Pine, principal and co-founder, PreVision Marketing, Lincoln, Mass.
a relationship with them. The importance of such hybrid programs for supermarkets in particular is compounded by the very slim profit margins of that class of trade. Pine said she worked with one grocery chain to determine how much money it could afford to spend to reward its best customers. Pine and the retailer, which she did not identify, determined that the company could allocate $2 to $4 per month in rewards for its very best customers. "That's not enough to change their behavior," she said, noting all customers could probably get a comparable discount just by clipping coupons. It became clear, then, that the retailer needed to develop recognition and relationship-building components to its program.
Giant, Stop & Shop Get Electronic Currency Counters
CHANTILLY, Va. -- The Stop & Shop and Giant of Carlisle Divisions of Ahold, Inc., are to provide its grocery stores electronic coin and currency counters over the next month, according to a source familiar with the situation. The "mini-settlement systems" from ATS Money Systems, Englewood, N.J., are expected to result in labor savings and reduced counting errors. Stop & Shop, headquartered in Quincy, Mass., operates about 200 grocery stores and Giant of Carlisle, headquartered in Carlisle, Pa., operates about 90 grocery stores.
Deloitte Consulting Launches Multichannel Tool
NEW YORK -- Deloitte Consulting here has turned software vendor and has introduced a comprehensive, multichannel technology solution for major retailers and consumer product marketers. The solution is designed to enable companies to integrate customer interactions across sales channels including stores, call centers and the Internet. Deloitte introduced the technology at a press conference held here during the National Retail Federation conference.
Tom Rauch, e-business service leader with Deloitte, said this product would help off-line stores reduce lost sales. "Seventy-five percent of customers walk out of the stores without buying something," he said. "But they had something in mind when they walked in."
Harvey Braun, an analyst with Deloitte, said, "This is how we start behaving as a single company rather than looking at channel conflict."
