Sam’s Discounts Have Personal Touch
Sam’s Club is getting personal with its members. Plus card members, who pay
an added fee over regular Sam’s shoppers, are able to go to an in-store kiosk
and pick up deals created based on their shopping history.
"This is really the holy grail in a sense, pricing to the individual," Willard
Bishop, chairman of Willard Bishop,
told The New York Times.
Angela Otero, who shops at a Sam’s
in Secaucus, NJ, recently printed out four pages of deals from the kiosk and
said it contained "the majority of
things I want." Ms. Otero told the Times, "It’s basically
my own grocery list."
While normal coupons may have a redemption rate
of a point or two, Linda Vytlacil, vice president for member insights and innovation
at Sam’s Club, said
the company’s kiosk program, called eValues, has a rate of between 20 and 30
"There’s no clipping coupons," Ms. Vytlacil told the Times. "All
they have to do is purchase the product, and the savings are automatically
applied at checkout."
Sam’s program is interesting because it finally
delivers personalized offers while so many other retailer loyalty programs
continue to use a scatter shot approach.
"You’ve got hundreds and hundreds of loyalty programs out there,
and I would argue that only a handful leverage it like they should," Stuart
Aitken, chief executive of Dunnhumby USA, told the Times.
Discussion Questions: What do you think of the Sam’s personalized offer program?
Why do so few retailers seem to leverage shopping data to create individual relationships
with their customers?