Data-Driven Marketing Tricks You Can Steal From Big-Box Retailers

Have you ever gotten an email from a big-box retailer and wondered… “how did they know?!”

You’re not alone. More and more, retailers are using first-party customer data (aka data that a customer has given them directly) to help them understand their customers. Sometimes, the data can even tell us what they really want – before the customer knows it themselves. Customer data can include anything from demographics like age and location to purchase history and browsing habits.

Chances are you’re already capturing this data, and that’s awesome. But are you using your customer data to its full potential? There are tons of ways that you can make all this incredible information work for you, optimising your messaging and driving results. Let’s think beyond one size fits all email blasts. Instead, think more personalised, targeted retail marketing that comes from a deep understanding of who your customers are.

Ready to dive in and make some waves? Let’s go.

In this article, we’ll go over:

• The power of regular customers
• How to use data for better selling
• Segmenting for better results
• Why and where you should collect data
• How data pays off

Your regular customers are your best customers

Use segmentation to identify them and give them the VIP treatment with targeted messaging

Did you know that approximately 80% of your business comes from 20% of your customers? This is an example of the Pareto Principle, and it pops up everywhere. So it makes sense to pay particular attention to that 20%, and engage with them specifically. But how do you find that 20%, and talk to them directly?

With Lightspeed Advanced Marketing, you can use segmentation to identify and split out your best customers, using two methods: RFM, and a tiered Loyalty Program.

RFM stands for:

• Recency (when the customer last made a purchase)
• Frequency (how many purchases the customer has made)
• Monetary (how much money the customer has spent).

Use RFM to segment your customers into categories like “most valuable”, “at-risk”, “window shoppers” and more.

With a tiered Loyalty Program, every purchase made accrues points. These points are then used to segment customers into tiers. With both of these systems, you can identify who your 20% are so you can talk to them directly.

So, what does this MVP status mean for your relationship with these customers, and how does it affect your marketing? 

We know that your 20% are aware of you and have an understanding of your offering. They’re interested in you and they’re highly unlikely to unsubscribe from your direct marketing. This means that targeted messaging has an exciting opportunity to drive sales.

This targeted messaging can take the form of VIP or insider offers to make them feel extra-special, early access to exciting products, or discount codes. The sky’s the limit, but a word to the wise – you’ll see your best engagement if you don’t send more than five emails per week.

Data can tell you what they really, really want

Take the guesswork out of product recommendations with a data-driven algorithm

If you open up your emails right now, you’ll probably have a few product recommendations from hopeful retailers. So what separates the good from the bad, and what keeps your customers from unsubscribing?

The best product recommendations are the ones that are relevant to the customer. Big-box retailers use your purchase and browsing history to craft each recommendation. But: did you know you can do this without the big bucks and marketing budgets to match?

With Advanced Marketing, you have access to the same product recommendation algorithm as Amazon.

This algorithm uses all the data your customers are already giving you to deliver relevant recommendations that will make your customers’ eyes light up.

Mecca is making it hard not to click ‘shop now’, with a curated collection of product recommendations based on purchase and browsing history. 

Segment for success

Use segmentation to speak directly to your customer about what matters to them

We already know how segmentation can be used to identify your 20% – but that doesn’t mean the other 80% aren’t worth paying attention to!

Yes, 80% sounds like a lot – and it’s probably made up of people with different relationships to your store and who come to you for different things. The most persuasive marketing is relevant and personalised. Tailoring your communications to your customers is vital if you want to make a real impact.

But to know what our customers want we need to know who they are – and that’s where segmentation can make a huge difference.

The data from each and every purchase a customer makes builds a profile of who they are and can identify where future opportunities might lie. This can be used to segment your customers into any number of groups, so you can craft hyper-relevant messaging that speaks directly to them.

With Advanced Marketing, you can segment based on geography, demographic, RFM or shopping behaviour – or any combination of the above. Discover and create different cross-sections and niche subgroups within your customer database and drill down on your targeted messaging, boosting impact and value for you and your customer.

These can be totally unique to your store, too. Got a group of customers who keep coming back for the latest pair of jeans? Call them the ‘Denim Diehards’ and make sure they’re the first to know about your new shipment.

You can even let them know your eagle eye spotted their dedication, and give them a discount-code to say thanks.

Chances are your customers already know you’re paying attention, so you don’t need to play coy. Make the most of it. Just remember to give it a personal touch, and ensure there’s real value attached.

Collect data wherever you can

Capture data quickly and efficiently, with every purchase

Customer data is priceless. Beyond being key to effective marketing, it adds value to your customer’s experience and can build a stronger relationship with them too.

Many customers are happy to give you these vital insights, so it’s on us to make sure we capture it efficiently and in a way that drives results. Whether you’re building a customer database from scratch, or you want to optimise your existing database, there are a couple of different ways you can approach it.

First, incentivise shoppers. Your customers are being asked to sign up by a ton of businesses, every day. So you want to stand out from the crowd, and give them a real reason to sign up. Approach it with an attitude of reciprocity. You give them a discount code, a competition, or regular benefits, and they give you their email in return.

Teva have us clicking with a personalised offer worth smiling about. 

Second, start a loyalty program to boost regular customers and entice new ones. Loyalty programs are also an incredible way to encourage customers to self-identify in-store and online.

This means you capture data no matter where (or when) they’re shopping, making the most of every single purchase. Advanced Marketing can sync this data effortlessly – bringing the online and in-store experience together. It can deliver you real insights and give the customer real rewards.

Notice how PB Tech keeps the treats coming for their ‘Insiders’. It does more than encourage customers to engage with their messaging. Continuing the incentives keeps customers from clicking that ‘unsubscribe’ button, and can be just the prompt they need to click the ‘shop now’ one instead.

Data = Dollars

Use data-driven marketing, and don’t waste a cent.

Collecting customer details and building a database is an integral part of so many business’ day-to-day operations. Done right, it can change your marketing for the better. The big-box retailers are already in on it, and you can be too. Plus, you don’t have to break the bank to steal a few of their secrets.

See it in action – free demo

Make sure you’re using the incredible data your customers are giving you to its full potential. Use Advanced Marketing to:

• Identify your 20%, and target them
• Deliver personalised product recommendations
• Set up loyalty and rewards programs
• Offer loyalty points in-store and online
• Segment your database to determine specific customer groups
• Build a more profitable database (increase repeat business and drive revenue)

Book a demo today!