As the world steers further into the information age, the value of data in business is soaring. For South African retailers striving to keep their customer base vibrant and engaged, embracing data-rich loyalty programs has become essential.
According to a recent study by BrandMapp and Truth, 76% of South Africans are now using some form of loyalty program. Stefan Gerber, co-founder at Tregter, highlights that this trend is on the rise. In fact, 30% of consumers reported using loyalty programs more than the previous year, driven by a desire for discounts amid a tough economic climate.
Gerber sees this growing demand for financial relief through loyalty programs as a golden opportunity for businesses adept at handling data.
"As digital technologies advance, companies will need to evolve their data management strategies accordingly," he said.
However, he advises caution: integrating artificial intelligence (AI) into business operations should not come before establishing a solid foundation in data management.
"Think of it this way: if you input poor quality data into an AI system, you'll get poor quality results," warns Gerber.
To truly harness the power of AI, businesses first need to focus on effective data management. This starts with building a data warehouse, a centralised repository where data from various sources is stored and organised.
Imagine a vast library where each book represents different data, sales figures, customer info, website interactions. A data warehouse acts as the catalogue for this library, helping businesses locate specific information quickly and spot valuable patterns.
Complementing the data warehouse is the Customer Data Platform (CDP). Gerber likens a CDP to a magic scrapbook that collects and unifies all relevant customer information from different sources. The CDP uses this comprehensive view to enable personalised marketing, sales, and customer service. In essence, while the data warehouse stores the data, the CDP creates a detailed, individualised picture of each customer.
In today’s market, an omnichannel approach, offering a seamless experience across online and offline touchpoints is also crucial. For instance, a customer might browse products online, check their availability in-store, and then pick up their purchase at a physical location. This consistent brand experience enhances customer satisfaction and loyalty.
Moreover, data warehousing and CDP systems are key to meeting another modern consumer expectation: quick responses and feedback. By leveraging AI-driven analytics, businesses can achieve rapid transformation, gaining a competitive edge.
Gerber points to Shoprite as an example of success through effective data management. With robust data systems and machine learning infrastructure, Shoprite has created a data-driven empire that keeps customers loyal through personalisation and instant feedback.
In the evolving landscape of business intelligence, those who master data management and AI-driven insights will not only attract and retain customers, but also dominate the market. For South African retailers, embracing this data-driven approach is not just a trend, it's a ticket to long-term success.
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