Why Big Data Matters

The value proposition for a loyalty program goes like this: use some sort of data-gathering device (i.e., loyalty card) that identifies shoppers uniquely; offer incentives to use the card (i.e., price incentives); gather relevant information on what, when, where, etc.; mine the data for insights; and act on the insights to drive behavior. The industry got the first part right but never effectively got past the data-gathering stage. Few shoppers have ever received any incentive from a loyalty program. Most just belong to loyalty programs to get the "card price."