Data is one of the top priority asset of any kind of organization. Every organization closely guards its information. An organization collects all the data from different online transaction process (OLTP) systems and stores it in one place. This place is called data warehouse. The organization needs to know how to make utmost use of its information.
The OLTP system data is structured and stored in online analytical processing (OLAP) system for the purpose of analysis. In Retail terms, OLTP system data is POS (Point of Sale) data and OLAP system is data warehouse. The Retail Data warehouse contains not just the POS data; it also contains the detailed information about the organization. It is normally comprised with different kinds of data like transaction data, details about each store and customers, demographics, psychographics and lifestyle.
If OLTP systems are the wheels of organization then OLAP system keeps a close watch of the organization. The data warehouse needs to be constantly updated for effective analysis.
Data warehouse plays a major role in customer loyalty programs. The data stored in data warehouse consists of various patterns. They contain valuable insights about customers. These patterns are recognized and extracted through several processes by analysts. Once extracted, analysts are able to understand the behavioral pattern of customers. By studying customers, retailers could work on different ways to satisfy their customers. The retailer would be able to draw strategies and work towards providing the best to their customers and also implement appropriate loyalty programs to retain them.
Loyalty Programs are a way to show customers that they are important to the retailer and they are one of the worthy assets. These programs involve giving rewards to customers. The rewards can be in form of major discounts on certain products to a simple meal coupon in a restaurant. Retailers use the information obtained from the programs for closely targeting their best customers with promotions and appropriate merchandise assortment.
Hence, Retailers need to maintain a structured data warehouse with the required information about customers which would help them understand the behaviour of the customer and plan to satisfy customers varying needs. Armed with the right knowledge you can design customized programs that increase loyalty and sales by creating campaigns, employee tasks, and reminders. It makes tracking return-on-investment easy.
CustoLogix with its wide experience in statistical analysis helps retailer to improve retail profitability through Analytics. To know more about retail services please visit CustoLogix atwww.custologix.com/service |
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