Retailers turn to data and analytics to link consumer information
Membership in US retail loyalty programs has grown to more than 1 billion, up from less than half that figure in 2006. As their experience with such programs deepens, consumers have begun to expect more personalized offers and services—not just blanket discounts—in return for their participation. Thanks to the increasing sophistication of behavioral and demographic data that digitally enabled loyalty programs provide, retailers can satisfy those desires while also addressing their own data needs, according to a new eMarketer report, “Loyalty Marketing 2014: Lessons from the Drugstore Chains.”
Merchants have gotten the message about relevance in growing numbers. In April 2013, RIS News found that retailers in North America were eyeing up increased investment in a host of loyalty marketing-related areas. Many of those efforts would occur in data integration and analysis.
The relationship between loyalty programs and customer and sales data is synergistic. As much as loyalty programs need data to personalize messages, they also serve as a key source and connector of consumer behavior across different sales channels.