There are a multitude of ways that independent retailers can collect ‘Big Data’ to increase their bottom line. Utilizing transactional data and online analytics, coupled with a cost-effective, state-of-the-art POS system are a few, but here are two more tactics that are easy to understand and use for future marketing and advertising campaigns: Customer Loyalty Programs and Third-Party Partnerships.
Customer Loyalty Programs
Most retailers will give discounts to customers who sign up for rewards cards or to be a part of their customer loyalty program. Why? Because the information obtained in this interaction is very valuable. This type of data is more in-depth and can include how far a consumer lives from a store, their spending habits and total household income. Not only is more data divulged for better personalization efforts, research shows that existing and returning customers spend 67% more than new customers. And these particular customers send referral traffic through the doors for more membership sign-ups. It’s the gift that keeps on giving.
If you’re an independent retailer and have no rewards program set up, create one. Customer loyalty programs boost overall sales by encouraging repeat shopping with great deals and offers. And you’ll gain customer-level data on how, when and what sales are working and what your customers are actually purchasing. All this data can be used indefinitely for advertising campaigns; unless a customer decides to opt-out. And by reviewing the data and updating store promotions based on what your consumers like, they will think twice before removing their information because the rewards are also very valuable to them, too.
Lastly, there are many mobile retail consumer applications out there that can work in tandem with your store’s loyalty program for collection of more customer data that can be added to your advertising arsenal. For example, there is a free, downloadable mobile app called Shopkick that rewards consumers with points when they shop in certain partnered businesses and scan or purchase items. Once a consumer reaches a certain number of points, they can be redeemed for various retailer gift cards. This type of partnership helps independent grocers move product off the shelf and incentivize shoppers via a third party app to participate. Consumers enjoy the perks and will give more of their personal information in order to get them. It’s a win-win situation for everyone.
All the data obtained during these transactions can then be purchased from the third party and added to your database of customer information. Each partner and interaction will have different data to add to the pot for further personalized communication to your customers.
Personalized Messaging is the End Result
The more you know about your customer, the more effective your outreach will be. Blanket email blasts and standard online and direct mailing promotions simply don’t speak to consumers anymore.
Customers enjoy when you can speak to their unique needs and wants. In return, you’ll experience an increase in basket size, purchase frequency, and overall customer retention. That alone will help cover the cost of your investment into ‘Big Data’ collection and any analytical tools you may need. More customer transactions = more money, thus creating data-driven marketing campaigns that can pay for themselves.
The key takeaway of ‘Big Data’ are the insights you gain about your consumers, from research to purchase, and how you, as the retailer, can personalize your offers – a key factor in creating customer loyalty and ultimately, increasing your bottom line.
RSA America partners with independent retailers to do just that. To learn more about RSA’s POS platform and how it can help you capture customer data, please contact us to get started.