Extending Loyalty Programs with BI Functionalities

Abstract

Effective customer loyalty programs are essential for every company. Small and medium sized brick-andmortar stores, such as bakeries, butcher and flower shops, often share a common overarching loyalty program, organized by a third-party provider. Furthermore, these small shops have limited resources and often cannot afford complex BI tools. Out of these reasons we investigated how traditional brick-andmortar stores can benefit from an expansion of service functionalities of a loyalty card provider. To answer this question, we cooperated with a cross-industry customer loyalty program in a polycentric region. The loyalty program was transformed from simple card-based solution to a mobile app for customers and a webapplication for shop owners. The new solution offers additional BI services for performing data analytics and strengthening the position of brick-and-mortar stores. Participating shops can work together in order to increase sales and align marketing campaigns. Therefore, shopping data from 12 years, 55 shops, and 19,000 customers was analyzed.

Data Anonymization as Instrument to manage Knowledge Risks in Supply Chains

“…As another facet, BDA helps firms make better-informed planning decisions. Based on BDA-driven insights, organizations can improve their capacity and resource planning (Kucklick et al, 2020). In comparison to human planning, recommendations based on BDA yield better results than human judgement (Du et al, 2020).…”

“…Our systematic review accentuates the need to further disaggregate certain DDBVs. This is particularly apparent in the case of process performance (Adjerid et al, 2018), organizational performance (Someh & Shanks, 2015), competitive advantage (Kamioka et al, 2017), and the generation of business insights (Kucklick et al, 2020). While it has been found that the usage of BDA may lead to the realization of such business values in general, it is left somewhat unclear which concrete values can be achieved.…”