Low Prices or Loyalty. What’s Best for Business?

Interesting analysis from Mila D’Antonio on the ways that American supermarkets are choosing ‘everyday low prices’ over loyalty programs:

Will Everyday Low Prices Replace Loyalty Programs? – Think customers: The 1to1 Blog.

In addition to the supermarkets listed, we’ve seen a similar move by Australian brands such as K-Mart.

Is this a trend we’ll see more of?

While the lure of good value for money is likely to appeal to customers, the downside is that these brands are not mining data to serve their customers more effectively.

Don Peppers has written recently on the 5 Best practices for successful loyalty programs, outlining the benefits of having an effective loyalty program scheme.

So what do you think? Are loyalty programs dead?

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