Exploring the geographical dimension in loyalty card data

Considers the potential that retail loyalty card schemes offer for a more informed understanding of consumer behaviour. With the widespread introduction of loyalty card schemes across the UK, Europe and North America, retailers now have the opportunity to link detailed shopping pattern information to the individual consumer. Data gathered from loyalty card transactions can be referenced to the address of the individual, and as such, can be considered to be a particular type of potential geographic information. Based on detailed semi‐structured interviews within five UK retail organisations that have implemented loyalty card schemes, the article shows the nature of data analysis and applications at present, with data being mostly utilised in direct marketing. It is argued that recognition of the geographic nature of loyalty card data is currently lacking amongst scheme operators, yet is vital if higher order functions are to be realised. To that end, the paper presents visual frameworks that position loyalty card data within the organisational hierarchy and highlight potential techniques and applications that can be achieved via loyalty card data analysis.