Shopper Data Collected by Supermarkets - How they Use it & Why!!!!

Supermarket Data :


Every time you Enter Supermarket or Shop to pick your Groceries and you then Scan your Clubcard or Retailer Loyalty Card that Supermarket or shop Gathers more information about you and your behavior. From the time you came into the Shop to what you  bought, they build a database of you and how you shop. This Allows them to see whats in your basket, What type of foods you buy and how many times you repeat this cycle. 

This information is very useful not just to the retailer as it allows them to Schedule Staff Rotas to ensure the shop is fully stocked for key periods of the day to ensure they right stock is coming in on time and its on the shelves to buy, But the Retailers also sell on this Data to Suppliers and Suppliers Love it.  It allows Suppliers to see who is buying their Brand, When they Buy it and what else is in their Basket or Trolley. They can learn a huge amount about what the Consumer is doing and looking for. It also allows the Supplier to see how well their Brands are performing V Competitors. This is a huge Income stream for Supermarkets and the better the information they Analyze and sort the more they can get for it.  For Example In Ireland , Tesco is one of the leading Companies who do this well. Their Own Loyalty Card " Tesco Clubcard" has they highest penetration in the market. Over 65% of Tesco Shoppers Use a Loyalty Card when they checkout.They then in turn sell this data back to Suppliers via the "Dunnhumby Business" which Sells packages of Data and targeted Marketing Campaigns. For Example did you ever Get Coupons in the post from Tesco and wonder why they are sending them to me. Well after Much analysis they Target Shoppers that have previously bought the Brand or Product and may have stopped buying it or have started buying a Competitors Brand and this is to try to win you back.

Other Retailers such as Supervalu & Dunnes Stores have recently Set up their Loyalty Schemes and they have upgraded them to be more Targeted, However Dunnes Stores dont sell their data to anyone. They just use it for in house Purposes.

So the Next time you do your shopping remember they are watching what your buying and want to know more about why you are.






Comments

  1. rachel collins31 January 2022 at 10:22

    Great Blog, I found the example of Tesco selling their own data via loyalty card very interesting. I found it very interesting to see how many people actually use loyalty cards & how beneficial this data can be for companies.

    Rachel

    ReplyDelete
  2. Orna5 February 2022 at 03:04

    Hi Shane,

    As someone who does not have any experience in the Fast-Moving Consumer Goods industry, I found your article extremely interesting. It gave me a great understanding and insight into how and why supermarkets use brand loyalty cards in their stores. From a consumers perspective, we never think about the bigger picture and we only consider the potential discounts we get from using these loyalty cards. However, now I realise that this small discount from the retailers and brands enables them to gather invaluable data and information on all their customers. It really is a small price for them to pay, as in todays world data is everything. As the famous quote says "Who has the data has the power".

    Orna

    ReplyDelete
  3. Michelle McBride10 March 2022 at 15:09

    Hi there, your blog post is a very interesting and helpful article. If you have any more information, I would be really grateful if you could share your links with me as I would like to learn more about the topics you touch on in your post. You write very clearly which really helps to understand complex information. Thank you for sharing your ideas and I look forward to reading more of your blog posts.

    ReplyDelete

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