Product Overview

Ukrop's has developed a unique coupon dispenser that is placed in front of the store. Customers with Ukrop's loyalty card can use this system to obtain coupons that are customized for them. The case explores the impact of this system on customer loyalty and store profitability. The case presents an opportunity to discuss the process of establishing the return on investment from such a loyalty program.

Learning Objectives

The case highlights the capabilities available among retailers for developing customer loyalty. The Ukrop's program is different from most loyalty programs in the sense that it is not based on points accumulated by the customer. The case also presents an opportunity to discuss various customer metrics and how they would be affected by a custom coupon program.