The relevance of loyalty programs and shopper information sharing as innovative and sustainable ECR strategy

Résumé du document

The Efficient Consumer Response is based on several fundamental elements: the right mix of products, optimal management of shelf space, efficient replenishment, providing the "right product at the right place and the right time", effective promotion, streamlining operations, business development, providing alternatives to meet the needs of the distributors, managing consumer advertising, developing effective products and obtaining more detailed information on consumer preferences and product characteristics.

According to Bertrand Berthelot, Doctor of Economics and editor of the site, definitions-marketing.com, the Efficient Customer Response (ECR) can be defined as follows: "ECR is a set of joint industry-trade initiatives designed to provide optimum response to the consumer. ECR is designed to better organize the entire supply chain and supplying, making the trading systems more efficient, less costly and more responsive to consumer expectations. According to ECR France, areas for improvement of ECR can be grouped into two strategic areas: the management of consumer demand and optimization of the supply chain."

Extraits

[...] The power of distributors has manifested itself particularly in the consolidation of purchases by brand or different brands. This growth of power of distributors is increasing with the new use of customer data. Indeed as Sami Finne and Hanna Sivonen noted: “Retailers new insight into their customers' needs is one of the main reasons for the power shift from suppliers to retailers that has taken place within the value chain. Shopper information helps retailers plan assortments independently based on consumer demand. [...]

[...] Several mail-order retailers offer a catalogue without any other promises to the client. Carrefour's (France) programme contains chosen products, discounts, fixed percentage rewards and promotions in store. Affinity group Knowledge building No rewards, only communication Hybrid There are many possible forms of loyalty, and in their book The Retail Value Chain, Sami Finne and Hanna Sivonen have grouped them in a table: Thus we see that loyalty programmes are extremely numerous. Indeed, loyalty and customer relationship management are priorities for many companies today in their efforts to counter competition. [...]

[...] In clear, this reduced produced are notified on a catalogue and you just have to choose. To measure the effectiveness of its loyalty cards, Carrefour has developed various tools to carry out studies, which have provided us with the following figures: -There are nearly 10 million Carrefour fidelity cardholders of cardholders say that the card has not changed their brand loyalty say they are more faithful via the card say that they are not at all faithful or less faithful due to the card -Only 20% are disappointed with the generosity of the corporation (particularly relevant to the "exclusive discounts") -The "free offer" is ineffective because 30% of the customers have not taken the time to choose their products reported not having memorized the list and 82% did not change their habits. [...]

[...] Indeed of managers never use it sometimes use it for ad hoc analysis use it often, and use it daily, being able to use the systems themselves. So these data are not always used. Why not? III.2.A/ Partial vision One of the major problems with using data from loyalty programmes is the fact that they are incomplete. So, in Carrefour, we can't use only this data. Indeed, it is estimated that only 65% of customers make purchases with their loyalty card. [...]

[...] Loyalty is to seek a state of desired fidelity. It is a global approach that does many things and establishes multiple devices. It does not just mean the creation of a loyalty programme in the narrow sense. A successful loyalty approach could strongly impact the profitably of most companies.” Since the publication of the 1996 bestseller, The Loyalty Effect, by Frederick F. Reichheld, all marketing managers were required to deal with loyalty issues, and it has become a "cliché" marketing lesson. [...]