Customer loyalty cards have been around for several years, acting as one of companies' most effective tools for outreach, information collection and purchase enticement. The New York Times recently reported that companies have taken a more detailed approach than ever before, harnessing advanced analytics to personalize sales and discounts.
"Personalization" has improved over the years. Once, companies would break their customer base into sections by demographic. According to the Times, food retailer Safeway has taken the process to its extreme. The organization has begun to extend customized offers based on spending habits and told the source completely customized pricing could be on the way.
Data quality could be vital to companies trying to harness personalization and loyalty-based offers. With every purchase and every individual customer's prices set by information analysis, firms with accurate data can launch offers that optimize spending and those without it lack the strong knowledge to craft such rewards.
In addition to loyalty programs, sales and marketing departments could soon become hotbeds of retail data use. A survey from CSO Insights indicated that while less than one-fourth of companies have begun analyzing unstructured information from their customers, 71 percent anticipate big changes.