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By Erin Harris, associate editor

It's no secret that the economy changed the face of traditional consumer loyalty in grocery. Intense competition challenges grocers to ensure that their programs offer both value and other customer benefits. Some industry executives believe grocers should focus less on promoting high-volume products and more on understanding what their best customer wants. As grocers explore how to leverage technology to uncover their customers' subtle buying patterns, they must also identify customers who may be likely to purchase in categories they've never purchased in before.

In order to garner new customers and keep existing ones, many grocers are promoting their loyalty programs via targeted emails and informative websites. Indeed, Wegmans reaches its members online to identify shoppers' explicit preferences. Kroger recently released a digital coupon center for offers that can be linked to Kroger Plus Cards. Shoppers can sort deals representing a broader range of CPG (consumer packaged goods) companies by popularity, expiration, value, and most recent.

So, how are grocers managing their customer data in order to improve customer loyalty? According to Food Marketing Institute (FMI), grocers manage the data they collect by using predictive software to analyze consumers' shopping habits, refine marketing programs, and fine-tune the product mix at the chain or individual store level. How much higher would your revenue climb if you could predict which customers are likely to return? By predicting which customers are at risk for leaving, campaign dollars are applied effectively. Without predictive targeting, a retention campaign may cost more than it gains. Grocers take data gleaned from a retention campaign and apply it to their loyalty programs. The data can reveal when products were sold, whether they were sold on or off promotion, and the profit margin on each sale. Inventory management technology is another critical tool to increase speed-to-shelf as well as decrease out-of-stocks and inventory costs. And, don't forget about your cross-channel reach. Your loyalty program's data helps adjust your product assortment to meet demand. Loyalty programs must meet the ubiquity of personal technology, because your consumers are connected to their personal networks.