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The Modesto Bee reports that Raley's, facing tough competition and continuing labor strife, is rolling out its first-ever loyalty program, called Something Extra.

According to the story, "The centerpiece is a brightly colored customer card around which numerous perks revolve. Raley's touts the program as more tailored to individual shopper habits than a traditional price-discount card like those offered by rival grocers."

The Bee describes how the program works: "Something Extra awards one point for every dollar spent on eligible products purchased. Extra points can be earned for buying certain items and participating in various promotions ... Points will be awarded to customers in the form of quarterly reward vouchers that can be used toward savings on future purchases ... Personalized offers will be based on customers' purchase history and product preferences, as well as perks for participating."

"This represents a paradigm shift that has occurred in our own thinking," said Mike Teel, Raley's president/CEO, in a prepared statement. "In the past, much of what we did was based on what the manufacturers wanted. From this day forward, we're going to be customer-driven, doing what they want."

Something Extra was developed with dunnhumbyUSA.
KC's View:
I continue to believe that the companies that know the most about their customers, and then use that information judiciously and effectively, will be the ones that will have the greatest advantages.