Grocery Loyalty Program

You probably have a wallet or key chain filled with loyalty cards. Everywhere you go there seems to be someone offering some sort of rewards program for shopping with them. This is not a coincidence. A properly implemented and executed loyalty program can provide a store with more sales, valuable customer behavior information and ultimately more profits.


Independent grocers are in a constant battle with big name retailers. Most of these retailers are offering rewards programs. So why aren’t most independents? Some will say it is too expensive, time consuming or that it is not needed. This is simply not true.

Loyalty programs can be as simple or complex as a retailer wants, set up to run quickly and seamlessly with their point of sale and back office software and are definitely needed for any independent grocer serious about beating the competition. There are three prime reasons that a loyalty program makes sense for any retailer.

1) Increase Basket Size and Profits

It is proven that customers will spend more simply to reach a certain number of points or a reward. This is psychological game almost always ends in the retailers favor. The perceived savings associated with the points or reward outweighs the fact that they might not have purchased an item if the rewards from the purchase were not present. In the customers mind the additional purchase makes sense, they are getting closer to their reward or desired points.

This provides the retailer with more sales that far outweigh the discounts they are giving on qualified reward items. For example, Loyalty Lane reward program’s customers who implement and use the program see, on average, their basket sizes increase 35%! That is big money for the retailer!

2) Reports

Do you know who your top 5 customers are? Retailers using a loyalty rewards program sure do. They also have the tools to make sure that those customers keep shopping with them.
The first time a customer uses their points to get a great discount or free item, they leave feeling like they “won” and that you, the retailer, appreciate their business. All the while, the retailer is gaining key details on their shopping behavior.

Find out what items your customers are buying, how they shop, when they shop, the last time they made a purchase and in what departments do they frequent most using built in reporting available in some loyalty programs. The customer behavior data you get from a loyalty program can be used to develop targeted marketing efforts to drive more sales, not to mention add that personal touch to each target to really make your customers feel special.

3) Marketing

Marketing can be expensive. Loyalty programs can make marketing a breeze. Some loyalty programs, such as Loyalty Lane, provide users with email marketing, print ready promo materials, custom rewards websites and the ability to create multiple reward groups.

Put your loyalty program to work by providing your customers with emails on their birthday, on sign-up, advertise reward specials and reach out to lost customers to name a few. The information gathered from the shopper’s behaviors and signup form allows you personalize each email with names and offers relevant to that particular customer group.
Drive customers to profitable departments or liquidate that overstock in the back with reward specials. All of this and more can be accomplished easily using a well-designed loyalty program.

The key to a successful loyalty program is not just design, it is implementation. Be sure to create or purchase a program that provides experts to help you throughout the entire process before and after the program’s launch. After all, the benefits of a good loyalty program can drive more business, better customer satisfaction and ultimately more profits.

Looking for a loyalty program? Click here for more information on Loyalty Lane!

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