What we've been up to, what we're thinking.

01
Ноябрь 2012

Is your trade loyalty programme rewarding the wrong kind of customer?

At Palmer Hargreaves we have over two decades of experience in the marketing of trade loyalty programmes and 'trade clubs'. In that time we've worked with clients in different sectors with various different trade channels on their trade loyalty programmes and we've come to two key conclusions;

  1. Many trade programmes are designed to reward the wrong customers.
  2. There's often a segment of 'under rewarded' customers who represent massive revenue potential.

What do we mean? Surely it's simple. If customers spend more, then surely they should be rewarded accordingly?

Maybe not. Looking at transactional data from several trade loyalty schemes the diagram below shows what we concluded.

Trade Club thought piece

What do we recommend? The answer is in customer data. Most trade programmes have lots of customer data; sometimes you may even feel you're swamped with it. But carrying out data analysis on areas like Share of Wallet and your members' 'Spread of Spend' across key product categories can yield surprising insights. One such exercise in 2012 identified a potential untapped revenue stream for one of our clients in the region of +15%

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