MINING FOR INSIGHTS IN LOYALTY DATA
Retailers with mature loyalty programs have household-level shopper data showing basket activity over time that experts say can be used to identify product trends, segment shoppers, define product affinities, and more.
Hari Shetty, global head — retail vertical at Bangalore, Indiabased consultancy Wipro Ltd., agrees, but only if grocers have the capability to analyze the data in a mature loyalty program.
“The more grocers and other retailers know about their customers — the way they shop and when, their preferred methods of communication, their buying patterns and habits — the better they can tailor products and services, which improves the overall customer experience,” asserts Shetty.
As evidence, he cites key findings from a study of retailers by the London-based Economist Intelligence Unit:
• 64 percent believe data increases brand loyalty • 52 percent say Big Data enabled them to expand their sales by offering the next logical item
• 64 percent of retailers have made financial gains in customer relationship management through Big Data
• 66 percent significantly increased the amount of information held about customers last year “It’s obvious that the more you know about your customer, the more effectively and efficiently you can deliver on their needs,” notes Shetty, “and loyalty programs are one way to do just that.”