No really, analytics are exciting!
Two senior executives were discussing loyalty over lunch. Or rather, they were bemoaning the fact that Lidl is no longer selling its delicious walnut and fig rye bread.
If Lidl had a loyalty programme with analytics, it would have been able to see how many high-spending customers were doing their weekly shop there – correlating with the sale of walnut and fig rye bread. But they don’t. Sad.
Important, powerful and often unappreciated
Analytics can be such a powerful tool in the armoury of a retailer, it is often overlooked in the conversation which revolces around rewards, incentives and customer love.
It is quite right that the mathematical side of a programme is underplayed. Few customers would thank a retailer for discussing their shopping trends and buying preferences, but they really should be grateful (if they knew) because all the hard work that is undertaken on their behalf results in a much better buying experience.
New judge this year for The Loyalty Magazine Awards is Andrea Burchett, group head for IAF Connect at International Airlines Group who has also worked for a number of years for Avios as Global head of commercial.
Andrea was telling Loyalty Magazine that when she is interrogating data, she looks for the “loyalty nuggets” which she defines as those pieces of information that stand out and cause your eyebrows raise. She gave the example of examining flight data out of Barcelona, and realising that 50% of the people booking actually originated in Poland. This enabled sharing of information with local airlines, so connecting flights could be offered to passengers.
She gave the further example of a ski company whose sales had fallen off a cliff. By looking at the nuggets of “fascinating data” from amongst the large amounts of ordinary data, it was possible to work out that sales had shifted following the promotion of an Olympics winners with a competitor airline.
We were so fascinated by these “nuggets”, we asked Andrea to write us an article. Look out for it here soon.
Coming soon at www.loyaltymagazine.com
Also coming up will be the much anticipated article on the financials of a loyalty programme. Iain Pringle, Crispin Rogers, Chuck Ehredt and a number of other commentators will be sharing their views on what is the cost of a loyalty programme, how do you work out if it is financially viable and how do you weigh up the cost against the outcome. We will also be analysing that other important ingredient that one of our authors calls “the magic” and without which no programme is complete.
Also scheduled are thought leadership pieces on Personalisation, the recent growth in financial loyalty activity and of course all the latest loyalty news.
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