This article is brought to you by Stuzo.
PHILADELPHIA—Loyalty programs provide retailers with a lot of data, but many retailers miss the opportunity to properly analyze and use insights gleaned from key performance indicators (KPIs) to meet their business goals. “This data can give retailers valuable understanding into their customers, which they can use to drive more visits and gallons, bigger basket sizes and greater brand loyalty,” said Jake Kiser, chief customer officer for Stuzo.
Here’s an example of how that works in the convenience and fuel retailing channel. “Each customer has multiple wallets—the amount he or she spends in total over a period of time on a particular item, like fuel,” Kiser said. “Using data, we build an understanding of how each customer spends each wallet. Rarely does one convenience store operator have 100% of someone’s wallet in a single category. We then help retailers earn a greater share of customer wallets, systematically, at scale, and profitably.”
Using KPIs can help retailers focus on two key areas that will drive better business outcomes. The first is running intelligent promotions tailored to specific customer groups instead of over-generalized offers. “Target the customers most likely to be incentivized to make an incremental purchase, instead of blanketing your customers with the same offers,” he said.
The second area involves using data to decide where to spend your promotional dollars for the biggest return. “You lose money when you offer a discount to a customer who would have bought the product at full price,” Kiser said. “Using the right set of KPIs enables the retailer to incentivize a behavior change that leads to a positive outcome without cannibalizing current sales.”
The right KPIs and loyalty/payments technology provider can give retailers an understanding of the incremental increase in customer wallet share, enabling retailers to be intelligent about incentives that bring about behavior changes with a positive impact on the bottom line.
This is the second installment of a two-part series about how key performance indicators help retailers increase loyalty. Click here for more information on Stuzo’s 1.5X performance guarantee for retailers who make the switch from their current loyalty/payments technology supplier to Stuzo.