Customer analytics show need for effective loyalty management
There is an apparent disconnect between customer and retailer perceptions of loyalty programs. According to new research conducted by Retail Info Systems News (RIS News) and Manthan Systems, findings show that 7 out of 10 retailers do not effectively use the information gathered through their loyalty programs. They either do not trust their loyalty data or do not make the information easily available to the marketing and merchandising departments to improve the accuracy of sales, inventory and budget forecasts.
“Managing customer loyalty is an interesting challenge for the retail marketer today,” said Anand Sri Ganesh, Senior Vice-President and Business Head, Customer Analytics for Manthan Systems. “We believe that analysing the available data with retail aware segmentation techniques will throw up unlimited possibilities for the retail marketers enabling them to drive revenue through loyalty. The research suggests more retailers are inclined to increase usage of analytics to understand customer behaviour and this is an encouraging trend.”
As retail becomes an omnichannel industry, RIS and Manthan predict data integration occurring across all channels and analysis identifying the lifetime value of single-channel and multi-channel customers. Mining this rich database to unearth growth opportunities will provide retailers with an edge.
Of the retailers surveyed, 84 percent of them chose relevant and personalised offers and communication as the primary driver of customer loyalty. A smaller margin of 74 percent opted for awards and discounts. This shows a growing sophistication among retailers and a level of maturity in the evolution of loyalty programs.
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