The Enabling Power of Frequency Shopper Databases

Mike Hess,
Promotion Decisions, Inc.

INTRODUCTION

The presence of very large databases made possible by FS programs has already led to new learnings about how marketing programs work. PDI has been evaluating FS data since the early 1990s and has now collected numerous applications about how this data can best be put to use in marketing and advertising evaluation and testing.

Such databases enable market modelers to analyze data with ever-increasing levels of ‘granularity,’ leading to superior decision making by marketing managers. Today’s large databases are generally of two types: 1) frequent shopper databases consisting of transaction-level data from the millions of households in a supermarket chain which present their loyalty/frequent shopper cards whenever they shop, and 2) Internet databases that measure click-throughs, time spent, and other variables from the millions of households already using the Internet and the World Wide Web.