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Outdated technology used to capture Stock Keeping Unit-Level data is preventing consumers from instantly redeeming points and discounts associated with loyalty and reward programs at the point of sale, industry executives told attendees last week during a panel discussion at the Prepaid Expo in Orlando, Fla. More-advanced systems could help retailers better track customer behavior at the point of sale and issue instant rewards based on certain purchases, said Stuart Kiefer, vice president of loyalty marketing solutions at First Data Corp. Merchants benefit by tracking SKU-level data because it helps determine customer behavior, which also can be used to distribute instant rewards, Phil Kumnick, senior vice president of product and payment strategy at TSYS Acquiring Solutions, told attendees. Retailers may find buying new technology an unnecessary cost during tough economic times, but they should view loyalty as an advertising and marketing expense, Kumnick said. "You have to find a way around the initial cost because that money will come back to you" from increased customer interest, Kumnick says.
