Berkeley’s Hadley Baldwin on retail loyalty schemes
As Asos announces that it is scrapping its ‘A-list’ loyalty programme, Berkeley Partner, Hadley Baldwin, talks to the FT about the value of such schemes.
Source: Financial Times
Asos tests customer loyalty as axe falls on rewards scheme
Hadley Baldwin, a consultant at the Berkeley Partnership, described loyalty cards as “elaborate cashback schemes” that are expensive to run and poorly targeted. They are also a financial drag. “You need to provision funds to cover potential voucher redemptions until the balance is written off. This is unused cash that could be allocated to do something better for the company.”
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