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 milhon shoppers can be used to analyse the effect of price promotions

in a way which can hring significant advantages to retailers and manufacturers

when making promotional decisions. The paper demonstrates the significant

advantages that loyalty card data can hring to enhance our understanding of

promotions, compared to traditional scanner and panel datasets. Regression

analysis is used to compare the effects of different promotional mechanics upon

different tiers of product across the fresh heef category in Tesco, using both

scanner data and loyalty card data. The results show that using loyalty card

data, which enables us to moderate for specific shopper characteristics, produces

more statistically significant results and provides a more detailed picture of how

promotions influence sales.