Loyalty cards - encouraging monogamy or promiscuity?

In the United Kingdom, the retail loyalty card market has become highly developed within a very short space of time.

Loyalty cards - encouraging monogamy or promiscuity?

Rowena Patterson RSL - IPSOS (United Kingdom)

INTRODUCTION

As in many other markets, in the United Kingdom, retail behaviour is strongly driven by the convenience of the retail location to the customer. However given the proliferation and clustering of stores in the United Kingdom, in most retail sectors whether it be for food and groceries, petrol, clothing or fast food, the consumer has a choice regarding which outlet or brand to visit.

According to the 80/20 rule, 20% of customers provide 80% of turnover. This rule is as applicable to retailing as...

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