The key to success within FMCG is making, and keeping shoppers happy. With 9.8 million households in Australia and multiple shoppers in many of those households, this is no small task… The question is, how do you do this? Shopper loyalty data is the answer!
Understanding the behaviours behind your most valuable shoppers becomes a simple task, with loyalty data. Loyalty data provides transaction-level detail which is the most granular insight on shoppers, allowing you to understand behaviour and trip trends within a particular retail banner. Basket analytics, also based on loyalty data, allows suppliers and retailers to collaborate to hone assortment to highest potential customers – all the way down to the store level.
That’s pretty powerful stuff. But there are other, less obvious, benefits to be reaped by properly mining shopper data. For instance, you can:
- Understand if and how promotions impact target shopper segments: Are the promotions driving increased penetration or cannibalisation? Are they encouraging trial and repeat across target shoppers?
- Assess distribution: Are your products in the stores where they have a right to win, based on the store’s shopper profiles?
- Gain a holistic view of assortment: Are high-loyalty items maintaining ideal shelf space? What does cross-purchase behaviour look like? How about switching?
Shopper insights provide critical data on trends, opportunities and threats across several marketing levers.
- Performance – Reveal actionable sales performance drivers: shoppers, price, units, trips
- Price & Promo – Understand incrementality, trial/repeat/penetration of target segments; target shoppers based on acquisition/retention goals
- Direct Marketing – Target the right shoppers with the right incentives, based on your acquisition/retention goals
- Distribution – Find stores/clusters where your products have “right to win” based on store’s shopper profile
- Assortment – Define assortment via cross purchase, switching, affinity, substitutability; product niche and high-loyalty items
- Shopper – Know your shoppers/non-shoppers at the retailer; shape your shopper marketing strategy
- Innovation – Launch-basis incremental shoppers/sales to the category; how is competitor innovation impacting your shoppers?
These types of insights produce powerful results. Suppliers that integrate loyalty insights with point-of-sale data consistently outgrow those who don’t by more than four percentage points.
Harnessing, analysing and acting upon loyalty card data may sound complicated. There are countless loyalty cards out in the FMCG world today, and the data behind many of these cards are stored in isolated silos. However, you don’t have to go at it alone.
IRI have integrated data from more than 550 million loyalty cards onto their industry-leading data management and visualisation platform, IRI Liquid Data. IRI’s data cloud, visualisation, applications and private cloud solutions manage all of your data assets for faster insights and actions.
Learn more about how IRI connects data, uncovers relevant patterns and applies the smartest prescriptive analytics to determine the specific action steps you should take for real-time growth here.