Another Dent in Customer Loyalty Programs

A while back, we questioned Stonyfield Farms’ decision to drop its customer loyalty program. 
Now, it seems that the trend may be picking up some steam — although we still question the wisdom of this in today’s competitive marketplace. Take the examples of the Pathmark and Waldbaum’s supermarket chains.
As Samantha Nelson reports for the Path to Purchase Institute:
“Great Atlantic & Pacific Tea Co.’s Waldbaum’s and Pathmark chains have eliminated their loyalty programs. Waldbaum’s terminated its My+Rewards program in July, and Pathmark ditched its Perks card in early August. Both chains are using a ‘Hassle-Free Savings’ slogan to present the change as a way to make it easier for all shoppers to benefit from sales. Checkout signs tout the move in stores; circular features, carousel ads on chain home pages and Facebook updates support.”
“While sister chains A&P and Superfresh are still using loyalty cards, they have joined Pathmark and Waldbaum’s in plugging store-wide cost reductions with the message ‘We’ve priced it right! Great prices on the items you buy most.'”
 What do YOU think about this tactic?

 

This entry was posted in Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer and tagged , , , , , , , , , . Bookmark the permalink.

8 Responses to Another Dent in Customer Loyalty Programs

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  5. Corey Savage says:

    What the retailers are missing out on here is customer information. With a loyalty card they can track purchases and make customized offers. Although this tactic benefits those that don’t want to give away any information.

  6. Pingback: Retailers That Get the Value of Loyalty Programs | Retailing: From A to Z by Joel Evans

  7. Pingback: Amazon Prime: A Loyalty Program That Really Pays Offs | Retailing: From A to Z by Joel Evans

  8. Pingback: What Any Marketer Can Learn from Amazon Prime | Evans on Marketing

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