Many retailers have loyalty programs designed to entice consumers to continue and shop at their stores. These programs not only reward loyal shoppers, but can also be a goldmine of insights for information hungry retailers. This loyalty data can provide insights into your consumer’s behavior that simply isn’t available using standard sales sources. Properly utilized, your loyalty programs can provide insights on issues such as brand interaction, substitution and cannibalization, price elasticity and the relative effectiveness of your promotional programs.
Our reporting tools will provide you with actionable direction on how to optimize pricing, assortment and promotional programs based on loyalty data.
Loyalty as insights
Some of the most difficult data to obtain accurately deals with consumer behaviour. How do they choose between like products? How should I price Controlled Label products relative to national brand equivalents to maximize volume? What is the best way to grow their average basket size? These are all questions that sales data alone cannot answer. Instead, you need to leverage your loyalty programs to gain new insights. The purchase behavior of your customers can be tracked over time, and statistically relevant information can be derived to have immediate impacts on your business and answer how your consumers shop.
What’s in it for you?
- Leverage and understand the key factors that drive consumer purchase behaviour.
- Grow consumer’s average basket by identifying trip missions and best promotional programs to encourage incremental purchases.
- Improve pricing by determining price elasticity of core items.
- Determine which items are regarded as non-substitutable and are providing incremental category sales.
Prospecting for insights
Utilizing your loyalty data isn’t easy. ToolBox Solutions can help you by utilizing statistical tools to dig for the insights that really matter. Our automated reporting will clearly and comprehensively provide actionable direction on how to optimize pricing, assortment, and promotional programs based on loyalty data. By implementing sales data, we can quantify the sales opportunity based on this information.