Ecrebo Blog

Data, POS and Converting Non-loyalty Customers

By Andy Watts, VP, Sales & Marketing | August 14, 2018

Open up your wallet. Apart from your bank cards and old receipts, I bet the rest of the pockets or card slots are filled with loyalty cards. Research by Statista suggests that consumers in Great Britain belong to an average of 3.6 loyalty schemes. Judging by the number of cards in my wallet, I’m a little above average.

Regardless of the number, the point of these schemes from the retailer’s perspective is to use the data generated from consumers’ purchase history to get a deeper understanding of their customers and understand how to retain them; while from a consumer point of view, it’s all about receiving customised rewards and offers that are relevant to you, that entice you back into store again and again.

That all makes sense. But what about when you don’t use your loyalty card (or app)? What if you are a regular shopper at a particular retailer but aren’t a member of their loyalty scheme? How can that retailer make sure they get to know you and understand your preferences to keep you coming back?

The Power of POS
By using the tools they already have at their disposal, such as the point of sale (POS).

The POS is starting to play an increasingly important role for retailers. Where else can you gather data about all your in-store customers and understand what they buy how often, and how much they spend? All in real-time. This data can be used to generate rewards and offers based on what customers want and will find of value.

It does get a little more difficult when it comes to customers that aren’t signed up to a loyalty scheme but it’s not impossible and, looking at the market, there is a definite opportunity. Using the right technology at the POS, data can be collected from non-loyalty shoppers and used to take them on a journey. Its purpose? To demonstrate the benefits of being part of a loyalty scheme and to get them to sign up to it.

Ecrebo Non Loyalty eBook website banner 7

Data is Still Key
The same technology can use this data and link it to a specific series of coupons delivered to customers over a period of time and are created based on that shopper’s purchasing behaviour (what’s in the basket, amount spent). Offers will be relevant and can include promotions for new or complementary products or straight-up discounts on historically purchased products, making them relevant and personal to the customer.

For example, if the first offer in the journey is a discount on a product in the basket, once it is redeemed at the POS, that data is used to generate the next offer. This could be a stretch spend offer, another in-store coupon, or a cross-sell promotion.

At the same time, the technology at the POS is processing the data gathered in real-time (spend, basket contents and frequency of shop) to generate more relevant and personalised offers for the customer.

The Future
Data is a key weapon in the retailer’s arsenal, whether it’s related to loyalty customers or non-loyalty customers. By growing the number of loyalty customers and converting non-loyalty customers through demonstrating value, retailers can really capitalise on the opportunity that data presents. And in today’s highly competitive market, every tool counts.

Download the full ebook “The Non-Loyalty Challenge” here.

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