The role of loyalty cards in irish grocery business

“THE ROLE OF LOYALTY CARDS IN IRISH GROCERY BUSINESS.”

In this essay I would like talk about role of loyalty cards in Irish Grocery Business. Haw and when work loyalty cards in three most popular supermarkets in Ireland and what the loyalty program is?
Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying behavior — which is potentially of benefit to the firm, moreover a loyalty program is one of the most advanced tools of creating and managing customer relationships. An organizer must define a set of rules which will reward particular client activities and behaviors.
Loyalty cards enhance customer loyalty directly by offering rewards as an incentive to shop regularly at a particular supermarket group.
Most loyalty cards also generate considerable information for supermarkets, including a customer’s name, address and purchase preferences. Multiples can use this information to tailor product offerings, promotions, investment and advertising to the needs of their customers, thereby indirectly enhancing loyalty.
In marketing generally and in retailing more specifically, a loyalty card, rewards card, point’s card, advantage card, or club card is a plastic or paper card, visually similar to a credit card or debit card, that identifies the card holder as a member in a loyalty program.
These cards are printed in full colour both sides, with a design of grocery shops choice, company also can to choose loyalty cards with numbering and magnetic stripes, there is sure to be an option that suits shop budget.
Loyalty cards in Irish business have recently come in the 1993 to the potential offered by a good loyalty card scheme. In the first year loyalty cards scheme increase repeat customs by up 45%.


The Superquinn 16 years ago introduced its SuperClub loyalty card scheme. This is regarded as having been the prototype for such schemes in Europe. But loyalty cards did not expand until 1997, when Tesco Ireland introduced its ” Clubcard ”scheme, shortly after its purchase of Power Supermarkets. Dunnes Stores responded with the introduction of their own “ValueClub“ scheme in June 1997. Today these are three main schemes operating in Ireland, although “ValueClub” has been withdrawn from Dunnes' Northern Ireland stores.
The clubcard is very simple to use and everybody meet this system before. If customer give own clubcard then cashier swipe card through a terminal and points are tracked instantly and recorded on customer receipt. After that cashier give back clubcard to customer.

In the next paragraph I would like introduce shortly SuperQuinn loyalty scheme in greater detail. The SuperQuinn has similar kind of card but work different system to work. Reward Card, Ireland is most flexible supermarket reward scheme. SuperQuinn led the way being the first retailer to introduce a loyalty scheme for customers in 1993. Now store leading the way again as we are the first Supermarket chain in Ireland to offer so many exciting ways for customers to spend their Reward Points using a flexible Irish owned voucher company. The system have name One4all Gift Vouchers. In SuperQuinn credited is different calculated than in Tesco Supermarket, customer earn 1 Base Point per €1 spent equivalent to 1% this is 1 point and there are bonus point offers too, to help bust balance on card. One4all Gift Vouchers are very flexible and can be used in over 600 retailers and 4,000 outlets nationwide. They do not only have to spend the vouchers in SuperQuinn as other Supermarkets insist. . Customer can chose how would like to spend Reward Points and have 3 choices; *receive quarterly Superquinn shopping vouchers : any points that was earned in the previous will be automatically posted to you and you can spend this voucher online or in the store *save your Points to spend in Superquinn with your card *exchange your Points for One4all Gift Vouchers; customer can spend this voucher in partner retailers shop nationwide including for example Boots, HMV, Argos or Brown Thomas.

Tesco superstore is one of biggest company in the grocery market and in this paragraph I would like explain haw work loyalty cards in Tesco supermarket and why we should be use this cards.
In you spend 1 euro in Tesco supermarket or Tesco Petrol Station, Tesco Direct or Tesco Insurance customer get 100 points collected.
In August 1999 Tesco launched ‘Club card Deals’, which enables customers to use their vouchers to obtain discounts on a range of travel and leisure products over a two-year period.
Tesco has also recently introduced a ‘Club card Keys’ scheme. In addition to Club card points.
Customers earn a key for every 25euro spent on a single transaction at Tesco stores.
Over a one-year period a customer must earn 50 keys to qualify as a ‘Keyholder’ which entitles him or her to a 50 per cent discount
on Clubcard Deals. Earning 100 keys qualifies the customer as a Premium Keyholder and he or she receives a 75 per cent discount on Clubcard items.
Here are several differences between the conditions on the Clubcard and Keyholders scheme.
Qualifying purchases for the Keyholders scheme must be at least 25 euro and do not include purchases made at Tesco Direct or Tesco Petrol stations. Keys can only be used for redeeming Clubcard Deals and they expire after a year.
The Clubcard in Tesco is about helping get more out of your shopping, as well as enjoy what customer many partners have to offer. It's important to us that you're happy with the service that you receive. Tesco created the Tesco Customer Charter to show you exactly what do with your personal details.
*Supermarket Tesco would like to reassure you that your details are safe with us and will never be released to companies outside the Tesco Group for their marketing purposes. *Store using personal details to send you your Clubcard Statement and any Vouchers you've earned, every three months. *Tesco use customer details to send you offers and information on things which might interest.
Moreover all the time shops to establish contract with the different company. At April 2009 Tesco Club card are joining forces with Cinemaworld. The 13milions customers with clubcards will be able to convert their Clubcard loyality points intro Cinemaworld tickets, meaning that for every euro or pound spent at the checkout, Tesco customer are that bit closer to seeing the next blockbuster at the local Cineworld .This clubcard’s client can redeem their points and apply for Cineworld tickets via Tesco’s website or through the post.


Dunnes Stores is one of the Irish largest supermarket chains, established in 1944 headquartered in Dublin. This shop also offers the loyalty cards. For every one euro spend in Dunnes Stores customer can earn one Value Club point. When customers have collected 400 points in one quarter, you will receive a mailing in witch your points are covered to Money off Voucher which can be used in any department in any Dunnes Stores outlet. Every additional one hundred points earned in quarter gets you give extra one euro voucher. Moreover this unused points may be carried over to the next quarter, at this way story offering for customer more ways and help to collected the largest pack. One industry source, who wished the remain anonymous, said the loyalty cards appealed to some shoppers who considered them to be similar to credit card. Some people even regard loyalty cards as something of status symbol. This option might change once they realize haw poor the financial benefits can be the extent to which their privacy may be invaded. Loyalty cards should reward the most profitable customers and deny such benefits to the thrifty shopper who generates slim margins for the retailer.


Company offer loyalty card and improve loyalty program because believe that their programs have a long-run positive effect on customer evaluation and behavior. Moreover every person should be carefully if would like sign up a loyalty card. Firstly people have to read the fine print and look what is going to access to your information and haw it’s going to be used. If you do have reward or loyalty cards be sure to check the store website for updates or changes in how they are protecting your data. People have to remember customer number just in case for example stolen or broken this card. On the other hand this card is safety and can help ass to save money and get more discount in the favorite grocery store. If people will have any question or anxiety can call to customer service and ask about this.


References


*http://www.superquinn.ie/
* http://www.dunnesstores.ie/
*www.tesco.ie
*www.tesco.com
* http://en.wikipedia.org/
* http://www.guardian.co.uk/lifeandstyle/2003/jul/19/shopping.features1
* http://www.dataprotection.ie/viewdoc.asp?DocID=150
*http://www.answers.com/topic/loyalty-program
*http://www.investorwords.com/2903/loyalty_program.html
*http://www.thefreedictionary.com/Loyalty+cards