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Supermarkets are going all-in on this data grab too. Those loyalty cards? Morgan Stanley reckons 92% of Brits have at least one now. Mad, isn’t it? In fact the three most engaged loyalty markets are:
- Poland
- Great Britain
- France
It’s got the Competition and Markets Authority sniffing around, but retailers are loving it. Why? Because your data is worth big bucks to them.
Loyalty Schemes: More Than Just Points
Take Tesco and Sainsbury’s. Their loyalty schemes are massive compared to places like M&S or Morrisons. And they’ve gotten even bigger lately. Sainsbury’s Nectar thing jumped from 67% to over 80% of shoppers in about a year. Tesco’s Clubcard? Same deal – up from 70% to 82%.
Sure, these schemes are meant to keep you coming back. But the real goldmine is all that juicy data they’re collecting. Sainsbury’s even set up a whole division called Nectar360 to crunch the numbers and flog advertising to suppliers. They reckon it’ll make them an extra £100 million over the next few years.
Tesco’s being a bit cagey about how much they’re making from their data arm. But they’re clearly taking it seriously. They’ve even nicked some big shots from Amazon and Pinterest to help out.
Source: Depositphotos
Branding in the Data Age
Here’s the thing – this isn’t just about making a quick buck. It’s changing how companies build their brands. All that data helps them get to know you better, so they can create experiences that really click. It’s not just flogging groceries anymore; it’s about making you feel all warm and fuzzy about the brand.
And it’s not just the big supermarkets at it. Even fashion brands are cottoning on. They’re using loyalty schemes and data to try and make you feel like part of the club. It’s clever stuff, really.
The Future’s Looking… Digital
So, what’s next? Well, the experts reckon we’ll see more screens popping up in stores. Maybe even on your trolley! And prices that change depending on who you are.
According to a McKinsey study, retail media is extremely profitable, with operating margins reaching 65-70% within three years of launch.
