While retailers cite a need for better customer engagement as a top priority and have a wealth of data to analyze in their service efforts, field experts warn that until business intelligence software capable of handling the information is put in place, having so much raw data data could be as bad as having none at all.
"We all know data is valuable, it’s why we have spent the past ten years working tirelessly to record as much of it as possible." said software industry executive Chris Osborne to Internet Retailing. "But without using it, it loses us time, money and the ability to provide good customer service."
Marketing Week encouraged retailers to form specific objectives and identify particular facets of customer behavior that indicate what is needed in a loyalty program before deploying one. The source warns that an improperly researched program could simply be rewarding customers for actions they already take, losing money without gain.
A recent National Retail Federation and KPMG study shows more retailers returning to profitability after the recession's difficult years. The companies which are coming back strong are, according to KPMG's Mark Larson, efficient and agile, wielding the strategies that helped them survive the downturn.
