This article is brought to you by Stuzo.
ALEXANDRIA, Va.—Of all the purchases a customer makes, some are with your brand and the rest are with your competitors. In addition, each customer has different wallets across all of the categories they typically buy, such as fuel, merchandise, tobacco or made-to-order food. This means retailers have an opportunity to steer more of customers’ existing purchase behavior to their brand. However, not many retailers track and know how much share of wallet they have compared to their competitors and know which loyalty mechanics are cannibalizing revenue.
According to Aaron McLean, chief marketing officer at Stuzo, which provides Wallet Steering™ technologies and solutions, retailers need to use data from across loyalty, payments and the customer experience to precisely, profitably, predictably and programmatically steer customer wallets to drive incremental purchase behavior.
“Delivering the same offer to all of your customers does not create loyal behavior and does not drive the business outcomes you are looking for. Retailers need to use data in real time to dynamically deliver the right experience, with the right incentive, to the right member, through the right channel, at the right time, in a way that is personally relevant to each and every program member to profitably steer the customer wallet,” said McLean.
Retailers need to find a technology partner that enables them to dynamically segment customers based on their wallet categories and wallet spend, while also uncovering trends and purchasing patterns. Retailers also need to understand which loyalty mechanics are cannibalizing revenue and which are driving incremental wallet share, profitably.
“If a customer is already buying 20 coffees a month, why should they receive a coffee promo for that behavior?” said McLean. “In this case, the retailer is funding a purchase the customer would already be making without any incentive.”
Retailers know that they need to deliver an exceptional, personalized customer experience to retain customers, build loyal behavior and profitably increase share of wallet, but it’s easier said than done. How can retailers “steer” more of their customers’ wallet share to their brand, profitably, drive loyalty and retain more customers?
This is no easy feat, so convenience retailers need a technology partner that enables them to profitably steer customer wallets to their brand. That partner is Stuzo. Download Stuzo’s white paper on The Power of Wallet Steering.
This is the first installment of a two-part NACS Daily series on using Stuzo’s Wallet Steering system to implement more personalized loyalty programs. Learn more about Stuzo’s Wallet Steering system.