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In Toronto, the Globe and Mail reports that Loblaw Cos. "is betting on a digital loyalty program" that will allow it "to reduce its print flyer costs, and shift those expenses to its new PC Plus smartphone loyalty program – and eventually shave those costs considerably." Or completely. Eventually.

"Loblaw’s latest initiative signals an attempt to target customers more tightly with offers that are more apt to respond to particular needs, based on past shopping preferences," the paper writes, adding, "Loblaw launched its PC Plus smartphone rewards program on Friday, with offers that are tailored to individual members ... It is counting on being able to collect better information from its customers, tracking customer shopping behaviour to help understand what it should stock on its shelves or what it should ditch."
KC's View:
I'm not sure that the cost reductions are all that important, at least not compared to the ability to create actionable databases that will allow companies like Loblaws to target consumers with relevant offers specifically tied to and prompted by past behavior. The costs may be lower, but the efficacy will almost certainly be much greater, and a total game-changer.