Customer concern about data protection and ‘loyalty fatigue’ have hampered take-up of Spar’s new loyalty scheme, a retailer testing the initiative has said.
Leicestershire-based retailer Raj Aggarwal has been exclusively trialling the loyalty programme app at his stores since the start of the year. However, he said despite more than 100 customers signing
up, he needs hundreds more to make the scheme a success.
“It’s hard to convince people it won’t divulge or delve into their personal data,” he said. “That’s what we’ve found difficult – getting customers engaged in a loyalty scheme and reassuring them we comply with data rules. Another obstacle is training staff.”
Mr Aggarwal is planning to revamp the scheme later this year. “We offered a 5% discount on total spend at the start as an incentive, but you can’t keep on doing that, it simply isn’t profitable.
“We’re not giving up – we’re analysing data, becoming more strategic and adjusting the offer so our customers get targeted deals,” he said.
Spar were unable to comment by the time RN went to press.
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