Is your loyalty card faithful to you?

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Ngozi Adaeze, 42, a housewife, shops regularly in one of the popular supermarkets around Iyana-Ipaja, a suburb of Lagos. As part of the reward of being a loyal customer over the years, she now enjoys a reward card which she could use to make a purchase based on points accumulated.

“The more I shop, the more points I get. I was even surprised when they started sending me newsletters on new products and prices,” she told BusinessDay.

The urban population in Nigeria is growing at 4.6 percent per annum. By implication, an increasing number of Nigerians now participate in the cash economy and have become consumers.

However, one would expect that this would translate to booming sales and profitability for major retail outlets and supermarkets in the country. Sadly, this is not the case.

The recent economic recession in the country, the worst in 25 years, left several consumers with a shrinking wallet while supermarkets and other retail outlets battle with low patronage from customers.

BusinessDay check shows that major supermarkets now have an incentive programme to reward their loyal customers.

A visit by BusinessDay to Spar store on Opebi, Ikeja area of Lagos, reveals that every customer enjoys a point for every N200 spent which can be used to shop once the points get to 500 and above. It also affords loyal customers to shop for free with their points.

“All our regular customers have loyalty cards as it is their reward,” a shop attendant at Spar told BusinessDay.

At the popular Ebeano Supermarket, customers that purchase N200,000 worth of goods enjoy a loyalty card of N2,000 with which such customers can make a purchase at that price.

“And if it is N400,000, then you have N4,000 free purchases. All you have to Read More...