There is no doubt that the role of big data is as crucial for understanding customers as the sophistication and power of the tools needed to extract valuable insights from that deluge of data, writes Philippe David
Among structured big data, as classified by Blogger David Meer (created data, provoked data, transacted data, compiled data, experimental data), lies a sub-set of transacted data, payment transactions and loyalty transactions, which is extremely rich and under exploited by retail banks, retailers, payment acquirers, processors and consumers themselves.
When correctly handled and analyzed, information coming from payment transactions and loyalty transactions put customers’ spending into perspective and bring benefits to all stakeholders:
- Cards & Payment Issuers gain sharp knowledge on spending from various customer segments, with various card products from their portfolio and at various retailers and can ultimately create more opportunities for cross-sell, up sell and strengthen their relationships with their cardholders. When running loyalty programmes, issuers can also extract from loyalty transactions criteria to redefine the choice of retail partners, both for earning and redemption of advantages.
- Retailers gain knowledge on who are their best shoppers, who are the most or least frequent visitors, the peak or low activities of the day, the best or worst days of the week. When running promotional campaigns or loyalty programs, retailers can exploit loyalty transactions to gain insights on the most attractive offers, coupons and other discounts and when is the best day or time of the day to launch such promotions and get full engagement from committed customers.
- Payment Acquirers and processors grind acquired payment transactions and provide to their acquired merchants an understanding of the share of wallet or share of mind they represent in their customers’ journey compared to other retailers in their own industry.
- Customers let all the other stakeholders massage their payment and loyalty transactions so that they can benefit from targeted discounts, offers and promotions at relevant and generous retailers.
A key pre-requisite for the entire exploitation of their payment and loyalty data is that consumers agree, approve and accept for their data to be tracked and exploited, while respecting data privacy.
So if one wants to exploit payment transactions and loyalty transactions, and at the same time get the approval of the consumer, what better way than to propose an Opt-in or Enrollment capability at POS terminals, during the moment of payment? This is the ideal moment and place (point of interaction) to get full attention from any consumer.
Fortunately, some companies are proposing innovative enrollment capabilities at Point of Sale, asking directly to consumers the question "Would you want to receive offers at this Point of Sale during your next visits?" via the display and keyboard of the POS terminal.
Explicit enrollment at POS or "Opt-in @ POS" is one answer to exploit big, structured, transacted data such as payment & loyalty transactions and follow all the rules and regulations coming from CNIL and EU around data privacy.
Explicit enrollment at POS also opens wide avenues of opportunities and brings new business models, for example the recruitment in stores of consumers on behalf of pure internet players such as market places or loyalty schemes.
The ability to offer Opt-in @ POS on behalf of a wide range of B2C companies will soon become one of the key success factors to unlock the exploitation of big -payment and loyalty- data.
Philippe David is the CEO of Welcome Real-time