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28 December, 2011 Retailers deploy Mobile Loyalty to track customer behavior

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.

28 December, 2011 Mobile enables Consumer behavior tracking

Mobile phone density in India is increasing at a tremendous pace. Out of a total population of 121 Cr, mobile phone access is with 79 Cr people. An interactive device in the hands of every consumer can help create the much needed one-one communication channel.

Brands have always wanted to know their consumer. Traditional media allows the brands manager to send out one - many messages. It is dependent on the time and frequency that the media provides for a certain cost. Access to the consumer is restricted to specific locations.

Consumer touch points have exploded in the last few years. Our prospect is spending more time on his mobile, social media or surfing the Internet than watching TV or reading newspapers. None of the traditional advertising media provide access to customer information. We have our ads being viewed by million eyes, but we do not know, if they were our relevant target audience. Millions of prospects visit our stores, but we do not have customer data for post visit interaction or to induce repeat purchase.

Digital and mobile media are changing the landscape. Mobile provides one-one to interaction with your consumer anytime, anywhere. Capturing consumer mobile number at your point of sale, through your offline advertisement or on social media, give you access to the consumer instantly.

New technology of mobile loyalty cards, short codes, QR codes on advertisements, Facebook widgets & hand-held devices today allow you to capture customer details across media. Creating a 360 degree customer acquisition strategy is the first step in knowing your consumer. You need to acquire them to retain & engage them.

The retail industry today works on traditional billing systems. The only thing that matters is bills. Consumer is not in the radar. Many Point of Sale systems do not have a consumer details section on their billing interface. It is critical to tag each bill to a specific customer. Identifying consumers, their purchases and frequency can enhance your customer loyalty and impact repeat purchase.

Consumers want discounts & offers, still redemption rates of leading brands are as low as 4-6 percent. The challenge is relevance. Relevant offers sent out at the right time using the appropriate channel invoke consumer action. Just like the mobile number enables identification of the consumer & helps capture purchase behavior, it provides an ideal channel for dissemination of offers for instant utilization.

There is a visible trend that is replacing plastic cards with mobile loyalty cards. Physical gift vouchers are being replaced by mobile coupons. Mobile coupons market globally is estimated to be US $ 2 billion. Consumers are fast jumping on to using anytime, anywhere relevant mobile coupons rather than standard and random generic offers.

  • Retailers deploy Mobile Loyalty to track customer behavior

    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.
    read more

  • Mobile enables Consumer behavior tracking

    Mobile phone density in India is increasing at a tremendous pace. Out of a total population of 121 Cr, mobile phone access is with 79 Cr people. An interactive device in the hands of every consumer can help create the much needed one-one communication channel.
    read more