Dear Chain Grocery Store CMOs,
Yes, membership cards seemed like a good idea at the time. But let's face it. There is no value in grocery store membership card programs for customers and your not realizing the type of value that seemed to exist from a conceptual perspective. Here are a few reasons why you should drop your membership card program first and take credit as the industry leader who did so:
1. Obviously, all of the retail chain grocery store competitors in your category have the same program.
2. A lot of the data you collect is bogus.
3. The rewards you offer aren't compelling and unique enough to retain a customer that you wouldn't retain without a card program.
4. Now you have a duty to inform people when they may have purchased bad food. "Dear Valued Customer, we sold you some bad food."
5. Your card program is a hassle for potential new customers.
6. You give so-called preferred treatment to some customers and the others are chopped liver.
7. Wal-Mart has been expanding grocery sales since "Go" and they don't have a card. Although customers will still come in for your extensive mustard selection...unless it's cheaper at a card-less discount grocer.
8. You can reduce your marketing budget by eliminating membership cards and have something new to talk about or pass the savings along to customers.
9. Unless you're a discount chain, the real value in your local stores is location, personal service and selection, not membership. Spend more money marketing that stuff.
10. Relating to the people who come into your stores as "customers" is more important to them than relating to them as "members."
Get a Gilman consultation.
