The deployment of loyalty card schemes should be intelligent in order to boost retailers’ turnover and forge stronger links with customers, an industry expert claims.

For example, new technology developments mean that radio frequency identification (RFID) systems could provide staff in stores with information about high spending customers as soon as they arrive, providing valuable marketing information.

Matra Systems managing director, Tony Houldsworth, told Retail Bulletin that a “successful loyalty initiative” will increase turnover and enable retailers to “re-engage with customers on an individual level”, much like shopkeepers of the ’40s and ’50s.

However, he also stressed that good loyalty schemes do not automatically deliver returns and initiatives need effort and time to gather pace, suggesting that information must be integrated into all areas of the business, including marketing, fulfilment and stock purchase.

Research by analyst TNS suggests that more than 85 per cent of households in Britain now own one or more active loyalty cards and such schemes are becoming increasingly popular, particularly in the financial services and grocery sectors.ADNFCR-8000151-ID-17962421-ADNFCR

Related Topics: General Marketing