Download - Loyalty Based Discounting at POS
Loyalty Based Discounting at the Point of SaleA closer look into the Analytics behind shopper’s Personalized Experience
By: Rohit Yadav
Meet Alex…
Digital Marketer
New York City
Proud Dad of One
Budget Conscious
Social Media Savvy
…Visits Retailer to buy Baby Products
…And the Search Begins
ADVERTISEMENTGets educated through
in-store advertisements about products on promotions through – digital billboards, apps on mobile, shelves etc.
MESSAGINGDiscounts based on 2 metrics – i.Loyalty to Retailerii.Loyalty to BrandHence, Discounts will vary for each individual for the products under promotion
DISCOUNT SLAB
Alex gets clubbed into discount slab (High/Medium/Low) which decides his
discount amount on purchase of products under Promotion
Alex gets
Segmented
into the right
discount
bucket
…Choice has been made
PROMOTION STRATEGYThe 1st and 3rd week of
the month to be promotion weeks where discounts would be given on a first come first serve basis.
Each store will have specific number of discounts per product based on their historical customer propensity for the product.
ANALYTICS ENGINEIn the 2nd week, a stock
taking algorithm re-distributes discounts to stores where demand for the product under promotion is more
BRAND LOYALIST
Tiered discounting will drive Alex to become Brand Loyalist to avail
highest discount. A digital statement at the POS informs him about the brand-wise discounts received
Most of the
discounts are
used up
ensuring
complete
Customer
Centricity
Discounts
provided to
customers who
are true
buyers of
those brands
“There is a lot
Analytics behind Alex’s
purchase”
“To win the crowd, you have to be the crowd”
-Philip Kotler
Multiple Personalized Opportunities
CLASSIFY & SEGMENT
Classify customers based on their loyalty towards retailer and towards the brand based on past purchase behaviour.
Customer gets clubbed to discounting slabs – High/Medium/Low.
ANALYTICS ALGORITHMRe-distribute the discounts digitally to retail stores where demand is more for products under promotion.
CPG players only need to communicate total spend and no. of customers they wish to target with discounts and the algorithm digitally allocate all discounts to respective stores of a retail chain – more discounts to store with more brand loyalists
PERSONALIZATION
Ensure complete customer centricity – discounts provided to customers who are true buyers of the brands.
Customer
Disclaimer
Axtria understands the dark side of personalization and we do not work with any personally identifiable data that can identify an end-customer of a business.
We have the strictest data security guidelines in place as we work with businesses to improve the experience for their customers.
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