Using supermarket loyalty card data to analyse the impact of promotions

The aim of this paper is to show how supermarket loyalty card data from a panel of over 1.4 million shoppers can be used to analyse the effect of price promotions in a way which can bring significant advantages to retailers and manufacturers when making promotional decisions.

Using supermarket loyalty card data to analyse the impact of promotions

Melanie Felgate and Andrew Fearne

University of Kent

Salvatore DiFalco

London School of Economics

Marian Garcia Martinez

University of Kent

Introduction

The use of promotions in retailing 2011). Despite this growth in the use of promotions, particularly in the fast moving consumer goods (fmcg) sector, consideration of their impact and effectiveness among academics has been limited. It has been identified as an important area for future research, as has the greater use of supermarket panel data to provide insights into how different shoppers respond to price changes, including promotions (Grewal & Levy 2009). Moreau (2001) assert that a lack of understanding by retailers about consumer perceptions of promotions can lead to weaknesses in their marketing strategies. Thus, as the use of promotions continues to grow, it is increasingly important to gain a more complete understanding of how consumers actually behave in response to different promotional activities.

WARC subscribers can sign in to keep reading

Not a subscriber?

WARC helps you to plan, create and deliver more effective marketing

  • Prove your case and back-up your idea

  • Get expert guidance on strategic challenges

  • Tackle current and emerging marketing themes

WARC consistently delivers valuable insights that help to make me look like an expert in front of my colleagues and clients.

Dasha Boryso
Strategy Partner, Fetch

You’re in good company

We work with 80% of Forbes' most valuable brands* and 80% of the world's top top-of-the-class agencies.

* Top 10 brands