Indian retail industry is going through a sea change. There are new brands coming in, existing brands increasing number of outlets and ever changing consumer is adding to the excitement. With all the visible growth, retention of existing customer is a key challenge for retail companies.
Customer loyalty has been used by many international brands over the years. The communication channels have exploded. Physical addresses have got replaced by mobile phones, social media and Internet. Electronic and print media is becoming interactive. Customer touch points have increased, allowing the brand manager more scope to have a one-one communication with a prospect or existing consumer.
Digital and mobile media provides the much needed one-one interaction. Brands managers can identify, track consumers and send out targeted messages to invoke customer action. They can identify, who is purchasing, who is coming back and who has not visited for some time. Further to this, SKU analysis gives them an exact view of a consumer’s shopping basket. Analyzing the basket over a period of time can help create a perfect price / SKU / frequency matrix for every consumer.
Mobile phone in the hand of our consumer makes the task much simpler. Mobile provides the much needed unique identity to the consumer. Tracking each purchase and tagging bills to the mobile number helps track the basket. Triggers based on SKU, frequency and total purchase can help send just the right offer to your consumer.
Offer redemption rates for leading brands in the country are in range of 4-6 %. In some categories, the rates are much lower. In such a scenario an offer becomes a cost, rather than an incentive to drive repeat or new sales. Lack of one-one communication channels & random campaigns result in such low redemption rates.
Brands need to redefine the approach for customer acquisition, retention and engagement. Mobile Loyalty platforms like m’loyal create an ecosystem to acquire your existing customers using mobile numbers as a unique identity. Tight integration with billing system helps tag each bill to an identified consumer. This helps create your own database of consumers and tagging helps understand consumer behavior.
Point of sale data can be used to create customized offer for different customer clusters. Each offer sent to a specific group of consumers based on their purchase patterns will increase traction and enhance redemption rates to 14-18 %. Mobile Loyalty Platform allows you to track customers, purchases, offer efficiency and visit frequency, thus creating an ecosystem that will show visible ROI on your marketing communication budgets.