Do you give away privacy for loyalty?

We wrote about the amazing success that Woolworths is having in the increased sale of products through  their online shopping portal. Today we explore the concept of loyalty considering the loyalty war that is going on between the shopping majors Woolworths and Coles as well as ways of increasing your customers loyalty.

Imagine this scenario:

Jane is 53 years old and lives with her cat in a northern suburb of Melbourne. She works full time on the other side of town, so she prefers to drive rather than catch public transport. On the weekend Jane likes to do some gardening, and she is also fond of red wine. In fact, she drinks so much that it makes financial sense for her to buy her wine by the carton. Jane’s daughter lives a few kilometers away and has an 18-month-old girl. Jane likes to buy clothes and toys for her granddaughter, even though she has more than enough already.

Loyalty Whitepaper from Monash University

There are some great discounts available for members of these loyalty programs but do you expose yourself and your complete spending profile to these huge companies. It becomes even more interesting as these companies enter more and more markets. From simple grocery shopping the retail majors are now into petrol and liquor and next it could most likely be pharmacy. With all this data about your shopping habits these companies will have an eerie amount of information about you.

This report reveals some very interesting information about how you can be profiled.

If there is one thing smaller businesses can take from this, it’s the value of having a database of your customers and the easiest database to use is your MYOB customer datafile or your email newsletter subscriber list. You can learn about these concepts in our online MYOB Training Courses and our WordPress course.