Loyalty card databases
Revolutionary analysis in shopper behaviour
Abstract
Loyalty card data is one of the key sources of data used in relation management between retailers and suppliers. This kind of information provides a strong incentive to both parties to move from “sales focus discussion” to “shopper focus discussion”. This presentation explores 4 areas in which this information can be used.
- A new product launch is one of the operations which benefits most directly from very large observations of purchase behaviour. In this period, loyalty card data can measure success in terms of first purchase and level of repurchase, as well as quantify the incremental purchases in the category.
- The analysis of promotional operations is another area where this information is pertinent. It brings an additional point of view which shows the origin of increased volumes from a promotional action. Is the increase of volume linked to new buyer’s recruitment or to existing customer’s loyalty?
- Loyalty card data brings accuracy to manage ECR programs (direct marketing) thanks to the size of the analysed sample (30 times the size of a traditional consumer panel.) It enables both partners to build common operations to increase the efficiency of their own programmes.
- Product category management can also be improved using the data. The objective of the analysis of strengths and weaknesses of a product category and its principal brands is to identify ways of growth for the retailer as for the partner manufacturer. This analysis will also contribute to the optimal offer of the store.
Matthieu Jolly
Laurent Battais MarketingScan, France