Safeway launched a pilot customer loyalty program this week at 300 of its Vons grocery stores in Southern California, combining location based services¬† from Foursquare and special offers from PepsiCo. The results of this trial will have very important implications for the customer loyalty programs of retailers everywhere; if these three companies can prove out this “check-in” loyalty model, then we should expect to see many others like it across all types of retail.

The most glaring omission from this pilot program is the lack of a digital wallet tied to individual customer loyalty accounts, which would allow for the check-in reward to be processed and realized without requiring the shopper to do anything beyond simply checking in via Foursquare. Ultimately it seems that LBS and customer loyalty programs are a natural fit, but this most recent model is still a few steps away from realizing its full potential.


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