Loyalty programs struggle to balance deals and margins as inflation lingers

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Key stat: Nearly a quarter (23%) of loyalty program professionals, across industries, say their biggest challenge is offering deep enough discounts to attract customers, per a global survey by Eagle Eye. Another 23% have a hard time balancing margins with attractive discounts, and 21% find it difficult to deliver offers to customers at the right time.

Beyond the chart:

• While inflation is easing, operating and supply costs remain high for retailers, forcing shelf prices to stay high.
• Customers continue to feel the pressure, trading down where they can and hunting for the best prices where they can’t.
• Retailers may consider turning to AI to help with pricing and discount strategies. By analyzing customers’ past purchases and using machine learning to predict future behaviors, these solutions can identify which items retailers should discount, when, and for which customers.

Use this chart:

• Evaluate strategies for loyalty during inflationary times.
• Determine the best way to offer discounts.

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Methodology: Data is from the April 2023 Eagle Eye report titled "Grocery's Great Loyalty Opportunity." 198 loyalty program professionals in 7 countries were surveyed online during January 7-February 6, 2023. Respondents were from United States, United Kingdom, Australia, Canada, Ireland, Malaysia, New Zealand, Singapore, and Thailand