When the credit crisis hit during the back end of 2007, it generated much talk on its likely impact on retail sales. One of our clients, a high-street fashion retailer, expected an impact on sales volumes and wanted to be in pole position to be able to combat the anticipated drop. Now we have passed the one-year anniversary of the financial markets crisis, and parts of the retail sector are, indeed, seeing a negative impact. However, our client, with the intelligent use of database marketing and loyalty activity, has been able to address it in an effective way.
Many have questioned the effectiveness of loyalty schemes. And if we were to pay heed to many of the commentators on the issue, the lasting impression would be of a technique in decline. If loyalty cards are never taken out at the till to gain rewards of some description—or the card owner never receives targeted and personalized offers from the card issuer—then the process is, indeed, a waste of time....
