Alliance Data opens customer analytics unit
With an increasingly fierce atmosphere of retail competition, Alliance Data Loyalty Services has launched a new customer analytics business called Precima to help retailers more easily identify customer needs and motivations.
Company president Bryan Pearson explained that Precima is an advanced analytics unit that will help examine and translate data about existing shopping behaviour so that retailers can find out who their most profitable customers are, what motivates them, and what can be done to keep them spending more.
Customer insights are key It is certainly true that the battle for valuable customers cannot be won on price alone. Consumer shopping decisions are also influenced by quality, service, location, and particular brands or products.
According to Pearson, the new company will therefore apply Alliance Data's existing expertise in analysing customer loyalty data to develop segmentation modelling, at the same time overlaying publicly available data and market research to gain greater insight into best customers and their main motivators.
Strategy employed The Precima team begins the task of analysing customer data by looking for insights that will help drive sales, starting by pinpointing the client's most important customers and key categories.
Using these insights, the company then identifies growth opportunities and addresses key business issues. For example, if a company is losing market share, the team identifies whether that is because prices are uncompetitive for particular customer segments, or whether base prices or promotions should be adjusted, or even if the product assortment is too narrow or the store layouts are confusing.