“You don’t change, you die.” That is what Sears CEO Lou D’Ambrosio told the Wall Street Journal. And D’Amboriso sees a lot of room for change at Sears. It appears that Sears is taking a giant leap forward with hundreds of millions of dollars worth of store and technology enhancements designed to improve the customer experience… and keep the lights on.
As a part of its efforts to right the ship Sears is crafting a new loyalty program. While a well designed and executed loyalty program alone is not enough to turn a business around it is a piece of the strategy. And as an industry insider you already know the wealth of information potential that a loyalty program captures - it’s the foundation of what we call customer analytics. But a lot of organizations take a wrong turn and throw away a lot of money with a poor approach to mining their loyalty card data (or basic customer transactions for that matter).
Our recommendation to Sears and any other retailer looking to mine the gold of their customer data would be to clearly state the backend objectives and to keep the customer analytics solutions simple, clean and actionable. Most of our clients want to use their customer data to help them understand the following:
Define the best customers – segment out the customers overall, by department and by channel (store, e-commerce, catalog).
Improve return on marketing investment – drive customer acquisition and retention/growth store by store, by channel, by category.
Understand customer media preferences – reveal best places to influence your customers.
Evaluate existing locations – determine if locations are meeting their potential. Relocate or close locations that will never meet your standards. Reposition or reinvest in stores with upside.
Determine new store potential – know before you go. Put your new stores where they will serve as a showcase for your entire brand experience.
Find out how customer analytics can help a retailer like Sears…
If you like to learn more about how customer analytics can help your retail organization, please contact us to request a introductory call.