It said retailers, such as Tesco and CVS, are using loyalty card information to improve promotions, segment target groups, reward their best customers and even change store layouts.
Retailers making best use of loyalty card data have a very clear idea of what they want, said Gill Mander, analyst at G2. The volume of of customer data has led retailers to invest in large datawarehouse technologies.
"Lots of retailers that have loyalty cards want them to improve sales but that is not what they are good for," she said. "They have to realise what the real value of the cards are and think carefully about their aims beforehand."
Since the mid-1990s, retailers have collated many terabytes of data from loyalty cards, but they have largely struggled to put information to good use, Mander said. However, Tesco's and Sainsbury's recently announced plans to tailor the product mix in individual stores using customer loyalty data, prove this situation is improving, she said.