It’s a topic that every retailer has spent endless hours exploring – how do we improve our customer loyalty?
Strategies to encourage customer loyalty date back as far as the late 18th century and have provided a mystifying challenge to retailers ever since. After 300 years of trying to crack the secret code of the perfect customer loyalty strategy, it may begin to feel like retailers are searching for something that isn’t there. However, with consumers of a younger generation entering customer bases, we have learned that not only is this the prime opportunity for new customer loyalty strategies, but these younger customers place a higher than average value on brand loyalty.
But earning loyalty from customers isn’t easy.
An important first step that must be taken before a customer loyalty initiative is undertaken is to make sure that you have a clear understanding of your business landscape. Questions like ‘Who are our most valuable customers?’ and ‘How does purchase frequency vary by customer segment and by store department?’ must be clearly answered in order to have a sound strategy for retaining the customers with whom loyalty is truly achievable.
Once a viable strategy has been laid out by leadership, it is essential to test and evaluate strategies in-market. In this first step, a powerful data analysis tool is fundamental to gaining a clear picture of what impact, if any, new customer loyalty strategies are having on volume, revenue, and other KPIs.
Providing this kind of performance accounting intelligence is what Salient Management Company has spent the past 30 years perfecting. By integrating the many different sources of data that retailers have and aligning them to provide a single source of facts, retailers can be empowered to dig deep through their vast quantities of data to clearly understand customer behavior, impacts of new programs, and answer any question that may come up along the way. It is this agility to take action on your retail data on the fly that sets Salient’s solution apart.
To learn more about Salient Management Company, contact us today.