Maximizing profit of a food retailing chain by targeting and promoting valuable customers using Loyalty Card and Scanner Data

The use of loyalty-cards databases: Differences in regular price and discount sensitivity in the brand choice decision between card and non-card holders

“…For the second of these options, the information that can be drawn from loyalty cards may be particularly useful. Pauler and Dick (2005), for example, present a model in which customer loyalty-card data are used to segment households, with a view to maximizing the profitability of pricing and promotion policies based on elasticity estimates across segments. Tao and Yeh (2003) also present a method that can be applied to improve customer retention in the credit card industry.…”

Retailer choice and loyalty schemes—evidence from Sweden

“…Uncles 1994;Sharp and Sharp 1997;Lal and Bell 2003;Mauri 2003) show that loyalty schemes are of value to the supply side as they establish long term customer relationships, increase revenues, and generate valuable information about customers' shopping behavior (e.g. Ziliani and Bellini 2004;Pauler and Dick 2006). Loyalty, in terms of the share of visits to a specific store, and profits are found to be positively correlated (e.g.…”

Targeting Valuable Customers within a Retail Reward Program Database by RFMG Model

“…In RFM model, Frequency and Monetary are whole-time aggregates. In fact, they do not reflect the value of newly joined customers who have the potential to become big spenders [14] [2]. Consequently, RFM will undervalue these customers.…”

“…One is to build customer loyalty. The other is to provide a source of useful data on customer behavior that can later be used to aid future CRM efforts [2].…”