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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info@axtria.com

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Axtria – Ingenious Insights

Founded in 2009, Axtria is a Big Data Analytics company which combines industry knowledge, analytics and technology to help clients make better data-driven decisions. Our data analytics and software platforms support sales, marketing, and risk management operations in the life sciences, finance, retail, and technology industries. We serve clients with a high-touch on-site and onshore presence, leveraged by a global delivery platform that focuses on reducing the total cost of ownership with efficient execution, innovation, and virtualization.

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