Retail TouchPoints – While as many as 77% of retailers say they have an established process to identify their most loyal customers, only 13% say they can accurately identify those that are most profitable, according to the BRP 2018 Customer Loyalty Special Report. Up to 39% of retailersdo have processes in place to identify profitable customers, but admit that their efforts still need improvement. Another 27% project that they will be able to identify these shoppers within three years.
Improving personalization capabilities means rethinking how retailers analyze customer data and identify their top consumers, according to Perry Kramer, SVP and Practice Lead at BRP. Private label sales will play a major part.
“Quite often, retailers are going after shopping frequency, recency or dollars spent,” Kramer said in an interview with Retail TouchPoints. “But they’re really missing the mark in identifying that 13%. That’s really the secret, because that personalization overlaps with the trend of private label. If you’re a retailer and you’re chasing that customer that comes in most often, but they’re always coming in with coupons and they’re only buying brand things and not buying private label, then you’re missing out on higher profit margins.”