Some retailers fear backlash from customers and a chilling effect at the point-of-sale due to increasing concerns regarding erosion of privacy through collection of personal data. As a result, these retailers scale back on even the most basic of customer data collection tactics, which include loyalty programs.
In an era where big data plays a critical role for retailers in adding more value to their brands, cutting off customer data, which acts as the lifeblood to any legitimate customer analytic solution, is drastic – backlash or not.
For retailers, understanding who the customer is – with surgical precision – is the key to reducing risk and uncertainty in business decisions regarding real estate, marketing and merchandising.
In fact, research suggests many customers value targeted marketing and promotions, despite the fact that they express apprehension when it comes to retailers collecting personal information.
The results of a recent study, commissioned by Infosys, showed that 78% of consumers say they would likely purchase from a retailer again if the merchant offered a promotion targeted to their specific interests – even though many think that online promotions and emails are missing the mark.
There are ways for retailers to gain granular-level customer insights without maintaining cumbersome data collection infrastructures and employing invasive customer data collection tactics.
Buxton is helping retail, restaurant and grocery chains acquire actionable customer data by leveraging a unique relationship with Visa. This partnership offers retailers the ability to create a customer database by using store-specific summarized Visa credit card spend data.
This new customer insight tactic has the advantage of being quick to establish and virtually frictionless between the retailer and consumer.
By leveraging Buxton’s relationship with Visa, retailers can capture retail transaction data at each location within a store network, which then can be used in Buxton’s analytic modeling solutions to create:
- A unique customer profile
- Drive-time trade areas
- Quantified values of existing and potential customers
- Enhanced location intelligence and targeted marketing solutions
- Reports that compare a retailer’s current and ongoing market share percentage to its competitions' by market, quarter, month, daypart and ticket value.
Customer data provides meaningful answers that retailers need to guide the execution of their real estate and marketing strategies. And by knowing their customers, retailers can achieve greater success by serving customers more effectively, efficiently and profitably.