DealerData: Targeting and Retaining Customers
Targeting and retaining in-store customers has never been easy for retailers, especially in today’s rapidly expanding multi-channel selling environment, Aberdeen notes in its latest “Business Intelligence in Customer Management Benchmark Report.” Traditionally, retailers have tended to look at their customers in aggregates: classes of customers, clusters of stores and general target demographics. That can often result in an incomplete picture of customer behavior and buying patterns. As a consequence, retailers would yield less than optimal results when changing elements such as their messaging, marketing, merchandising and pricing strategies. Lack of internal systems that allow retailers to effectively evaluate and act on customer behavior trends have impeded progress.
Providing a higher level of customer performance has been center stage for retailers. On one hand, retailers feel constant pressure from Wall Street and other stakeholders to maximize earnings per share, predictability and performance against their peers. On the other, these same retailers recognize that these metrics alone achieved in isolation without understanding are short lived.
Aberdeen reports that 56 percent of the respondents use business intelligence functionality to manage customer cross sells and up-sells. Other top areas of business intelligence use include loyalty reward programs, sales analysis and identification and targeting of specific households.