As a retailer, you have a limited view of your customer based on what you gather from your POS data and social media because you don’t know how customers are spending their money outside of your store. All this can be solved if you acquire access to a very useful piece of data-financial data.
By combining financial data from millions of customers with your POS data, you can achieve a solid 360-degree view of your customer based on their preferences and habits, and grow your ROI by running more targeted marketing strategies. Additionally, you can also outperform your competition by spotting trends and offering better deals.
Adding Financial Data to the Mix: The Benefits
With access to customer’s financial data, not only will you be able to make more informed business decisions, but think of all the efficiencies you would gain from additional customer knowledge and optimized marketing expenditure.
The amount of personalization possible with all this added financial data allows for stronger customer experience and retention. Talk about a mutual benefit!
There are two advantages when it comes to financial data working together with POS data to boost personalization: increased customer intimacy and increased customer loyalty. With customer intimacy, we are talking about being able to better anticipate customer needs by analyzing buying patterns and understanding shopper behavior. With customer loyalty, we are talking about how you can customize your offerings and deals according to a target group’s needs or even an individual’s needs, to ensure the customers feel heard and important.
Thus, personalization is always value-adding to both the customer and the company because it helps with bringing in value as well as customer retention.
With financial data in the mix, you are further able to maximize the quality of your marketing spend.
You could optimize your marketing expenditure by combining your sales data (for example, what was purchased at your store, when it was purchased and how much it was purchased for), and financial data (for example, how much was spent at your store versus another store within the same industry). Seeing these customer preferences allows you to obtain valuable insights which will help you make smarter product, pricing, and promotional decisions.
Another important aspect of leveraging financial data is knowing what percentage of your customer’s wallet is going towards you versus your competition. But wait, that’s not all! In terms of data insights, unlocking this greater potential will help your organization build more powerful models. Forecasting future sales and buying preferences will be much easier to detect with financial data.
Financial data can help to better direct your promotional efforts in terms of efficiency and information such as data insights, saving you both time and money.
Using privacy-protected financial data that is secure and compliant with all legislative regulation helps you be worry-free and avoid any problems or PR nightmares.
Luckily, there are companies out there that combine security and privacy to form an optimal solution to comply with regulation, ensure privacy and IP protection as well as secure the best possible ROI for your company. Additionally, their privacy and security methods are intact throughout the data pipeline, from acquisition all the way down to publishing, using access controls and cryptography.
Basically, combining all this financial data to your existing pool of data will help you increase local demand, optimize media spending and promotional activities, focus on customer experience, and it will also compliment your privacy compliance. Modelling all these levers can help you forecast future sales and growth as well, thus increasing performance.
Still not convinced? Let’s check out some large corporations that stand by this…
See How Walmart is Implementing this Solution
“Walmart uses big data to make the company’s operations more efficient and improve the lives of customers”
To power their goal to provide the best shopping experience possible, Walmart is maximizing their use of big data, to help reveal consumer patterns. Transactional, online and mobile data, all combine to help them serve the customer better, so they can keep coming back.
They use data mining to extrapolate trends from their POS data, to see what the customer buys, when they buy it, how they buy it (online or in store) and what they buy before or after a certain product. POS data allows the organization to see shopping patterns to determine how to display merchandise and stock shelves. Furthermore, they can send out personalized rollback deals and vouchers based on consumer spending habits. Not only do they use this data to create customer value, they also use it for staffing purposes. For example, to help lower the amount of time it takes to fill a prescription, Walmart looks at how many prescriptions are filled each day to determine staff scheduling and inventory (link).
Additionally, Walmart has created their own credit card which gives them firsthand knowledge on their customers. Using the expenses from the financial data of customers helps them gain a solidified understanding of consumer habits and preferences. This enables the company to anticipate demand for each product or service.
The outcome of using this big data includes improving store checkout procedures, managing supply chain and optimizing product assortment.
To Sum it Up
Without data, companies are not able to grow and digitally enhance themselves according to the needs of their target market. So being able to leverage data to its full ability is a competitive advantage on its own, especially with data being such a huge commodity today. Unlock greater potential with respect to increasing your customer value by expanding your access to the data available around you.