Make Better Business Decisions by Leveraging Customer Data

Last updated: 03-02-2020

Read original article here

Make Better Business Decisions by Leveraging Customer Data

Former CEO of Tesco, Sir Terry Leahy, credits the company’s loyalty program, Clubcard, as the key reason the company was able exceed the performance of its two biggest competitors. Using loyalty data, Tesco was able to make better data-driven decisions.

“It was absolutely transformational for the business,” he said. “We could treat customers as individuals. And we could learn what they were interested in, what their behaviors were, and we could tailor and target all of their marketing so that it was relevant to that individual consumer.”

Successful loyalty programs are no longer just a brand differentiator, they’re also a valuable source of customer data. Loyalty programs sit on the front lines of customer data collection and for many brands, particularly CPG companies that do not have a direct relationship with customers, loyalty programs may be to the only source of data collection.

Not only will this data tell you about what your customer wants from your brand and why they purchase and engage with you, but the insight gained from a loyalty program is more relevant and accurate than a third-party data source and can tell a company so much more about where to invest their time and money, and where to tweak their strategies to grow their business.

Let’s take a look at some of the areas where loyalty data can drive effective business decision making.

Using data from a loyalty program, retail brands for example, can make informed decisions about price, promotion, and product selection. Brands have the ability to drill down to SKU-level data and understand the products their best customers are purchasing, even to the frequency. Using loyalty data, brands can personalize product and discount offers to improve the customer experience and drive sales.

This data can also be used to help drive better in-store experiences. Knowing the transaction history of customers enables brands to create a more personalized in-store experience.  An example of a brand that uses data to provide better in-store shopping experiences is Nordstrom. By using sensors and Wi-Fi signals, the company tracks who comes to their stores, how long they spend and which parts of the store they visit. They have also installed interactive touchscreens in changing rooms in select stores to allow customers to order products and view stock online.

as part of their loyalty program have access to location and total basket data. Access to information on the additional items purchased by a customer provides CPGs with greater visibility into the persona of their customers. This provides CPG brands with valuable data on opportunities where they have opportunity to cross selleven partner with other brands. This data also helps supermarkets and retailers optimize store layout for better in-store customer experiences that maximize profitability. For example, if a supermarket’s loyalty program identifies the trend that customers regularly purchase potato chips with beer, they could maximize the likelihood of the purchase of both items by stocking them in close proximity.

Brands that leverage loyalty data to make better business decisions are already helping set their brand apart from the competition. In today’s competitive landscape where brands are only as valuable as the service they provide, brands have a major opportunity to win customers through creating personalized experiences. This means demonstrating an understanding of a customer’s needs and wants by leveraging data to target customers with the right product recommendations and promotions. For example, Tarte’s “tarte

Read the rest of this article here