Cosentinos Loyalty Program: Reality Bites

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Cosentinos Loyalty Program Reality Bites

• Casie Broker, Marketing Manager, Cosentinos

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Overview

• Share some reality bites from our program
• Some Success
• Some Failure
• Some Challenges

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Price Chopper

• 43 stores
• 5 families
• 3 point-of-sale systems
• Large metropolitan area with diverse demographics
• Opened 27 years ago as the box store format
• Today they are full-service stores

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Cosentinos Food Stores

• Family-owned company started in 1948
• 3 brothers purchased a little market
• Over 57 years they have grown to
• 22 stores (15 with card programs)
• 4 formats
• 3000 employees
• 3rd generation of family working in the stores

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Launching as part of a Co-op

• 5 families make up the Price Chopper chain
• We do not use the same
• Point-of-sale systems
• PLUs
• Item hierarchy
• DSD vendors costs/retails
• at times, philosophies
• Within Price Chopper
• Within each ownership

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DecisionsDecisions

• What will the card look like?
• Instant Issue or personalized cards?
• How many signs will we put up?
• Who will do keypunch?
• How will we transmit records?
• Is the POS ready?

These were the easiest decisions we made!
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Target Marketing

• Target lost shoppers
• Reward top shoppers
• Sweepstakes
• Reward top shoppers
• Reward top shoppers
• Sweepstakes

We are very good at sweepstakes!
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Data Overload

• Which reports do we like?
• Who needs them?
• How do we read them?
• Interpreting reports the same way
• If it makes sense to me, why dont you get it?
• How do we disseminate the data to other
  departments?

The answers to many of these questions should
have been reasons that the card program was
launched.
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The Data Challenge

• Ownership/Ad Committee What do you mean only
  8 of our customers bought the roast off the
  front page? That cant be correct. This is a meat
  and pop business.
• Department Directors/Buyers That data is for
  marketing. Im doing just fine running my own
  department

Running the data is the easy part, selling it is
often much more difficult!
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Pre-Ad Analysis
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Ad Item Analysis
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Community Rewards Program

• Program Logistics
• 1 rebate program for not-for-profit groups
• Group must register
• Customer registers their card with a particular
  group
• Sent checks monthly
• Program Goals
• Increase customer loyalty through philanthropy
• Decrease walk-in donation requests
• Support not-for-profits that were profitable to
  our company

Trying to accommodate too many points of view can
cripple a program.
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Customer Mapping

• Mapping Customers
• Maps are used to help with
• Where to send mass mailings
• What area of not-for-profit groups to donate to
  (by store)
• Distribution of circulars
• Explain lost shoppers due to road/bridge closures

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Customer Mapping
Bridge Out
Store
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Declining Top Shopper

• Declining Top Shoppers
• Top 30 who had declined 30 or more
• Sent a series of 8 mailers with various
  discounting offers
• 10 off (repeated)
• 5 off 25 order
• 10 off 50 order (repeated)
• 15 off
• 5 PC check

Although cumbersome, this one was worth the
effort!
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Declined Top ShopperCompared to Year Before
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Pet Club

• Program Logistics
• Reward every 50 spent on pet supplies with a 5
  coupon
• Sent via U.S. mail
• 6-month program
• Program Goal
• Increase pet category growth

Make sure that execution is in line with your
goal.
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Challenges

• Inability to infiltrate data into all/most
  aspects of our business
• Getting caught up the way we have always done it
• we are high/low retailers
• Shooting from the hip/Lack of planning
• Not setting a common measure of success
• Targeted marketing is expensive
• Promotions are often complicated

We didnt become a grocery chain with a
customer-centric marketing strategy. We became a
grocery chain that launched a card program as a
promotion.
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The Next Level

• Some success
• Mixed with a little failure
• A dash of experience
• Topped with hindsight

We believe that the NEXT LEVEL is here, it is
what we do every day.