The retailers who decide they are simply going to be 'cheap' are missing a trick.
Done well, loyalty and EDLP reinforce each other, working together to positively impact the bottom line.
Discount retailers need to find a way of differentiating themselves from other EDLP retailers, otherwise it's just a race to zero.
Across Lobyco's European partners, loyalty members typically spend between 10% and 14% more than non-members. Download the guide to learn more!
European grocers and supermarkets have long grappled with whether to adeopt an Everyday Low Price (EDLP) strategy or invest in loyalty, but this choice, often portrayed as a binary one, no longer reflects the reality of how consumers shop.
Today's shoppers don't view these two entities as competing ideas; they look at price first, then decide if the loyalty offer adds extra value.
For retailers sitting between discounters and premium chains, the implucatuons are stark. Competing on price alone is a downward sprial that can erode profit margins.
Yet competing on loyalty alone, without demonstrating price credibility, also carries risks, inviting churn and potentially jeopardising brand value and equity.
The landscape has changed. The opportunity lies in weaving the two strategies together, optimising the retailer's investment to create value on both sides of the checkout.
Through this white paper, you can gather insights on why retailer's need both strategies combined in todays retail landscape. Happy reading!
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