Another big advantage over traditional number-crunching is that the data is presented very visually instead of in endless rows of figures. This makes it much easier to understand and act on. The Analytical Framework visualises programme impact by customer segments, such as member vs. non-member; digital vs. paper; different spend deciles; or as defined by the retailer. We can plug those in right away, and the retailer can view their most valuable customers and see how the programme has affected them.
Privacy and data security are rightly crucial factors these days. That's why we built the Analytical Framework with privacy in mind, complying with legislation such as GDPR in Europe and SOX in the US. It's a paramount of importance to us to ensure that customers' data is safe. It's also worth bearing in mind that the Analytical Framework is a fully automated process, unlike a manual process which is lengthy and prone to user error. Analysing a programme with the Analytical Framework therefore saves the whole team a lot of valuable time and effort, while protecting customers at the same time.
We can even filter by aspects such as stamp collection method, redeemer status, store type and sales decile, and are able to insert additional filters as needed. For example, you could want to check how the programme is affecting the top 20% or 30% of customers. With a high-value programme, you might notice the proportion of redeemers jumping to a much higher percentage. And you can clearly see if, for instance, the dollars spent on a discount programme actually aren't influencing the bottom 30% of customers. That's not necessarily what you'd expect, but the evidence is before your eyes. So then you learn not to over-index on those lower-value customers.
The Analytical Framework is providing a great source of best practises across the world because it is able to turn each retailer's individual data inputs into a standardised, easily viewable and understandable output. This is providing us with insights that then help us to develop innovative programmes based around customers' needs, desires and shopping preferences.
From 2016 to 2018, we manually analysed 150 million unique customers, while in the first 6 months of using the Analytical Framework we already surpassed this total. The Analytical Framework has now been up and running for two years, during which time we've analysed more than 400 million unique customers, 11.3 billion transactions, 28 billion purchased products and 100 programmes, and we are excited to see what the future will bring. The momentum is continuing, and we're looking forward to helping more retailers discover the advantages of this innovative new tool.
Hearts & Wallets is the official magazine of BrandLoyalty. It is a magazine for people working at the highest levels of the food retail industry. The goal of Hearts & Wallets is to come up with real insights on - and answers to - current issues, while offering its own individual interpretation as food for thought.
Learn more about our mobile app that replaces mystery shoppers. StorePal helps staff members to optimise in-store execution.Go to StorePal