Increase Sales and Loyalty With Customer Analytics
Most people, whether they’re in retail or not, have heard about big data and its many applications in improving sales and marketing. Long before big data made headlines, however, customer loyalty programs were busy feeding retailers relevant, current data about their shoppers that allowed them to make smart insights, serve customers better, and increase revenues.
Sure, customer loyalty programs strengthen customer loyalty, but they also provide retailers with a rich trove of customer data. If you operate a retail business with a loyalty program, you can use that data in creative, intelligent ways to better understand your customers. This lets you target promotions effectively and maximise return on your marketing investment.
Data from customer loyalty programs includes information such as what customers buy, when they make purchases, response rates to promotions, and much more. When you make use of this data, you can accomplish a number of important goals.
Attract New Customers
You can use data from customer loyalty programs to establish demographic profiles that tell you who your most profitable customers are. This information can, for example, allow you to target shoppers with similar demographic characteristics when you undertake new customer acquisition campaigns. By knowing who your most profitable customers are and what they buy, you can promote products that will draw in more customers that are likely to have the same profitable shopping habits.
Help Customers Discover New Products
In addition, you can use customer loyalty data to help you serve existing customers better. For example, if your store started carrying a new brand of coffee, you could use loyalty program data to learn who buys competing coffee brands. You could then, through an SMS or email campaign, guide these customers to the new brand, perhaps with a special offer when they try it for the first time. Coupled with other promotions, like in-store samples, you could generate significant enthusiasm for new products.
Identify Which Customers Are Most Profitable
Since customer loyalty programs track sales at both the company and individual level, data collected from these programs can help you learn which customers are most profitable. These customers can be targeted with offers that will increase their loyalty. When your company regularly analyzes loyalty data and consistently offers products that appeal to your best customers, you strengthen your engagement with these customers and make them even more profitable.
Discover Trends and Purchase Patterns
When you consistently collect accurate, up-to-date information on your customer base, you can use analytics programs to dig into all that data and uncover trends and patterns you might not have noticed otherwise. These trends can help you, for example, target offers effectively, determine which products people purchase at the same time, and use targeted product placement strategies in stores to increase sales.
You Don’t Have to Be a Data Scientist
If you’re worried that you need to be an expert on statistics to be able to make sense of all the data available from customer loyalty programs, you needn’t be. The best loyalty program providers make it easy by creating user-friendly, customisable data “dashboards” that let you identify the data you’re interested in and display it in ways that make insights easy to pick up. You can even combine loyalty program data with other data, like website data, to refine insights even further.
For those looking for a low maintenance, hands-free solution, software like The Loyalty Box makes it possible to automate the sending of promotions based on the buying data you collect. This way you offer your customer more relevant promotions and upsells based on products they already buy.
With customer loyalty programs, retailers have a tremendous opportunity to gain important insights about who their customers are, what they like, and what they want from their shopping experience. This data allows retailers to market effectively, make smarter product selections, and improve customer service continually.
The Loyalty Box is a leading provider of affordable, easy-to-implement customer loyalty programs to small and medium sized businesses. Our programs offer outstanding data analysis, visualisation, and reporting tools and are compatible with all major point of sale systems.
If you’d like to learn more about how customer loyalty programs can achieve major benefits for your business, please contact us at any time. We would be happy to answer all your questions and help you develop your own thriving customer loyalty program.