Euclid Analytics Delivers Loyalty Metrics for Retail, Restaurants and Auto Dlrs
SAN FRANCISCO, CA–(Marketwired – Oct 27, 2015) – Euclid Analytics, the leader in location analytics, today announced the release of Loyalty 2.0. Using advanced location analytics, Euclid’s new solution measures in-store loyalty for retailers, quick-service restaurants (QSRs) and other businesses with physical locations. Based upon metrics from new, repeat and re-engaged customers, businesses can accurately segment loyalty behavior within their physical locations to guide in-store operations, marketing promotions and loyalty programs.
Today’s mobile-savvy consumer is informed and making fewer and more focused visits to brick-and-mortar businesses. As such, in-store traffic and loyalty over the past few years has significantly eroded. Understanding customer loyalty in the physical world and engaging key customer segments within the store is essential to driving long-term growth. In the retail market, a recent study revealed that only 12 – 15 percent of customers are loyal to a single retail brand, yet generate between 55 – 70 percent of that company’s sales. Similarly, loyal customers reportedly spend 33% more than new customers,
With such a small segment of customers driving a majority of sales, retailers and other businesses are naturally focused on moving the loyalty needle. While existing loyalty programs are an essential component of the marketing mix, they contain a significant blind spot: they are unable to measure or engage every loyal or repeat customers that enter a store, restaurant or other business. For example, if a specialty retailer advertises a “Black Friday” promotion, existing loyalty program customers making a purchase can be attributed to the promotion. Unfortunately, new or repeat customers that aren’t part of the program and walk into the store cannot be identified to assess the effectiveness of the Black Friday promotion — especially when those customers become repeat shoppers during the holiday season and beyond.
Introducing Loyalty 2.0
To tap this lucrative customer group, Euclid developed a way to make loyalty programs smarter with new in-store metrics and segmentation capabilities. Loyalty 2.0 helps retailers, quick service restaurants, banks, auto dealerships and other brick-and-mortar businesses:
- Measure and segment loyal visitors. Understand and segment the percentage of customers that are new, repeat and re-engaged within a given store or across an entire chain. This approach is similar to how online analytics today measures “new vs. repeat” visitors for eCommerce sites.
- Measure marketing and operational effectiveness. Based upon the new segmentation capabilities within Euclid EventIQ, pinpoint the in-store strategies and marketing campaigns that contribute to long-term customer retention.
- Maintain brand consistency. Analyzing cross-visit behavior shows businesses which locations must have consistent experience — from promotions to pricing.
- Increase stickiness with current customers. Monitor how frequently customers return to physical locations and which items and promotions keep them coming back.
Based upon Euclid’s location analytics, Loyalty 2.0 works by detecting and measuring industry-specific loyalty metrics. For example, a coffee shop may require more frequent metrics for daily customers, while a bank may only require quarterly metrics. Data is then segmented by loyalty frequency including new, recent and re-engaged consumers. Brick-and-mortar businesses can then use this information to assess retention rates among demographics and location. The data can also be used to uncover promotion-driven customers and to understand long-term acquisition.
The solution also provides insight to personalize engagement and experiences across chain locations. For example, a large chain retailer can use the solution to observe how often a new customer frequents each store location. Retailers are given insight as to which locations are thriving, and whether stores are too close to one another, so they can drive revenue and ensure a consistent, top-notch brand experience throughout the chain.
Additionally, Loyalty 2.0 features an upgraded version of EventIQ, launched in June. With the new updates, retailers, quick service restaurants and other brick-and-mortar businesses are provided with insight to help measure the long-term impact of an event and segment customers based on promotional behavior.
“Loyal and engaged customers are the growth engine of every business,” said Brent Franson, Euclid’s CEO. “In fact, boosting loyalty by even a few small percentage points within a store or restaurant can have a dramatic effect on sales. By combining Euclid’s location analytics with other contextual data, Loyalty 2.0 helps businesses make smarter marketing and operations decisions that complement existing loyalty programs — and keeps customers coming back.”
Euclid Analytics is the world leader in location analytics. Over 500 brands across retail, banks, quick service restaurants, airports and shopping malls are using Euclid to understand customer behavior in their physical locations to optimize marketing, operations and staffing. Affordable and requiring no new hardware, Euclid is easy to deploy on leading Wi-Fi systems in less than 48 hours. Euclid’s growing network captures billions of measurements per day across over 40 countries and tens of thousands of locations, analyzing hundreds of millions of physical customer touch points per year.