Introduction
ASDA is one of the leading retailers in the United Kingdom, with both retail and online stores. The company has achieved incredible success in the field and gained customers’ trust. The company is known for its unique approach to offering products at lower prices. It is no secret that ASDA has previously implemented a strategy called everyday low prices (EDLP), which allowed the corporation to stand out among competitors.
Due to various external circumstances in the market and internal factors in the company, ASDA has recently decided to roll out its rewards loyalty scheme, encouraging citizens to shop in branded stores. However, a thorough analysis should be carried out to discuss whether this initiative has positive or negative results. This paper is a comprehensive study of ASDA’s new loyalty scheme.
The Role of Data
Data’s role in integrating an effective loyalty scheme by ASDA is primarily expressed in comprehending the information about the target audience and customers’ preferences. In this case, the more accurate the details, the higher the company’s profits. For instance, for the most part, ASDA attracts customers’ attention due to its everyday low prices (EDLP) strategy. ASDA leaders understand that “times are tough for families right now” (Nott, 2022, para. 7).
Many people want to save on their purchases in all possible ways through discounts and bonuses. Having information about potential and regular clients and their needs, ASDA can understand which direction to move to achieve the best results in terms of customer demand. These will be competent and correct solutions that will allow ASDA to generate information and predict several essential events to optimize work in the company (Calzon, 2022, para. 16). Due to this, ASDA will be able to check the efficiency, productivity, and effectiveness of its scheme and take informed actions and decisions for sustainable growth and development. In addition, the organization can help people make an informed choice in favor of ASDA rather than its competitors, like Aldi and Lidl.
Therefore, based on such aspects, it becomes evident that data’s role in helping ASDA meet its specific objectives is additionally explained by the company’s desire to become a market leader in the UK and get ahead of other discounters like Aldi, Lidl, and Tesco. For example, it is known that the EDLP strategy has not recently demonstrated proper efficiency; thus, ASDA was forced to take stricter measures to withstand the onslaught of large competitors (Rahman, 2020, para. 5). In this context, one should remember that the desire to beat out the competitors at the expense of lower prices is a distinctive feature of ASDA.
Leveraging Customer Data
The decision-making process is a strategy of collecting necessary information, evaluating alternative options, and making a final choice to find the most optimal solution. At ASDA, the decision-making process involves choosing a reasonable alternative to solving a problem, which is a critical point in the management system. In general, the advantages of the new scheme for decision-making procedures in ASDA are obtaining essential data about customers and consumer trends, saving time, money, and other resources, increasing productivity, identifying opportunities, and avoiding risks. Knowing the customer base, ASDA can quickly determine the type of loyalty program in accordance with the target audience and the products sold.
In other words, the new rewards scheme helps the organization collect meaningful and valuable marketing data for accurate and objective decision-making processes. Therefore, its main advantages and benefits are associated significantly with collecting vital customer data and first-hand feedback (Gareiss, 2022, para. 3). In this case, ASDA leaders can easily cope with the task of deriving consumer insight, optimizing customer experience (CX), and ensuring regular contact with clients. Furthermore, knowledge about customer bases obtained with the help of creative approaches and the nationwide loyalty program, Asda Rewards, will allow the company to improve the adoption and retention of the program members.
Furthermore, some privileges of the rewards loyalty scheme nationwide for the decision-making process at ASDA are the development and implementation of particular paradigms for studying the dynamics of purchases in relation to participation in the program. On average, people are sufficiently price-sensitive, and their preferences depend on decision-making and the type of optimal actions within the framework of the presence or absence of a reward program (Liu and Ansari, 2020, p. 422). Thus, due to the new scheme, ASDA can influence customers, adjust their behavior, and change consumer trends.
Learning from Loyalty Programs
As a result of the new rewards scheme, ASDA’s decision-making process will improve, advance, and match the other “big three” supermarkets in the United Kingdom. For example, based on relevant theories like the customer loyalty theory and the expectancy theory, due to the scheme, a buyer will act in one way or another based on a motivation to get desired results (Woolnough-Rai, 2019, para. 12). Consequently, ASDA will understand the specifics of customers’ behavior and show them why ASDA is worth the effort and how buyers will be rewarded for engaging with the company’s program. Knowing such essential aspects about the target audience is crucial when planning and implementing the program’s concept.
In that situation, ASDA can answer the questions about how the firm intends to use the loyalty program when working with various customer segments, taking into account their specifics. Hence, what will work well for some participants will be useless for others. However, many examples once again prove the particular advantages of the reward system for a company’s decision-making process. For instance, it is no secret that modern consumers’ rapidly changing tastes and expectations are gradually modifying the entire retail sector.
Today, customers approach questions about purchases in a completely different way than it was a few years ago, and given this circumstance, Ralph Lauren has adopted an entirely new business model and a system of rewards for buyers (Danziger, 2021, para. 5-6). By taking such a bold step, Ralph Lauren can “see ahead” and predict the likely outcomes that can be adjusted and changed in advance. Accordingly, the decision-making process at Ralph Lauren has remarkably improved, and the demand for the company’s products has become more outstanding.
Another example of improving decision-making procedures due to the loyalty system concerns Tesco. The expert reports that Clubcard helped Tesco make confident decisions to surpass the largest competitors (Rossi, 2020, para. 1). In addition, using the data obtained during the new loyalty program implementation, Tesco made more informed, balanced decisions.
It was a remarkable transformation, which made it possible to learn the interests and behavior of clients to adapt and target marketing in such a way that it was relevant for individuals (Rossi, 2020, para. 2). Therefore, byimplementing the new rewards system, ASDA will benefit from this decision. Still, ASDA should additionally continue to consider the received customer data to understand the situation and be aware of customer reactions.
Conclusion
Summarizing the above, implementing the rewards loyalty scheme nationwide for customers is one of ASDA’s best decisions. Moreover, the new scheme has multiple advantages and positive aspects, especially allowing ASDA to collect the necessary data about clients and their purchases to make essential decisions regarding marketing strategies. In particular, the role of data is additionally expressed in comprehending the audience and its preferences for executing the best systems of encouraging consumers to purchase.
Reference List
Calzon, B. (2022). Why data-driven decision making is your path to business success. Web.
Danziger, P. N. (2021). The rewards outweigh the risks as Ralph Lauren launches a subscription rental program. Web.
Gareiss, R. (2022). Why are loyalty programs important? Web.
Liu, J. and Ansari, A. (2020). ‘Understanding consumer dynamic decision making under competing loyalty programs’, Journal of Marketing Research, 57(3), pp. 422-444. Web.
Nott, G. (2022). Asda rolls out its Rewards loyalty scheme nationwide. Web.
Rahman, M. (2020). Competitors of ASDA (ASDA competitor analysis). Web.
Rossi, C. (2020). Make better business decisions by leveraging customer data. Web.
Woolnough-Rai, M. (2019). Customer loyalty theory: Decision-making and the psychology of rewards. Web.