More misguided loyalty programs

In a previous post I commented on Coles Myer’s misguided new loyalty program.

Now I read that they have hired Tom Lemke a former Kmart US executive in charge of loyalty programs. One hopes he will bring new knowledge to the company, but I doubt it. More likely he will consolidate blind faith in loyalty initiatives.

And today I read that they are testing a new program that asks shoppers to register and fill in a questionnaire on what brands they buy. They are then sent a shopping list which switches them to other brands – if they stick to this list they get large discounts in the form of loyalty points (that can later be converted to cash).

Good to see experimentation, but they would be better off first putting money into fundamental research into marketing. This program is doomed to be insignificant at best, and most probably a waste of money.

www.MarketingScience.info

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