Product news: Good data helps Iceland Foods win customer loyalty
Obtaining a single view
“We collect customer data in localised repositories which we merge, mostly for home delivery and direct marketing purposes, to our central customer data warehouse,” said Mark Pearson, IS Director at Iceland. “Historically we applied basic but vital data cleansing processes to handle simple postcode verification and de-duplication.”
Iceland Bonus Card
Following trials, the retailer elected to launch the Iceland Bonus Card. Executive sponsorship for the card was strong. Upon its introduction store performance, check-out interaction and customer experience ratings had been observed to increase.
In return for the Bonus Card benefits, customers allow Iceland to capture data about their store transactions and to conduct automated basket analysis. The retailer builds a profile of consenting shoppers and intelligently generates Bonus Card-related discount coupons and personalised direct marketing offers relevant to each customer.
Data quality dependent
Iceland knew that introducing the card would lead to a significant increase in customer data volumes and data processing. It would need to capture customer data from hundreds of thousands of card swipes a week from across the store network, cleanse the data and match it with each card holder’s records in the customer data warehouse. Iceland would then need to update those records to create a clean, current and accurate Single Customer View (SCV) – quickly and on an ongoing basis.
Any problems in this matching and updating process could lead to long check-out queues, home delivery delays and customer frustration – as well as starving marketing of consumer data.
“We determined that strong, smooth data quality processes were an absolute necessity,” said Pearson.
Iceland said it also particularly valued the extensive data quality rules already built into the Trillium Software System. This meant it could implement the solution and reap its benefits swiftly. The retailer noted the ease with which it could develop custom rules and how it could now apply rules right across the business through a single toolset, regardless of data sets, systems and database technologies. In addition, the Trillium Software System facilitated its model of collaboration between IT and the business on data quality.
Going live with the Trillium Software System, the PAF match rate increased initially by 9%. Multiple instances of duplicates were also spotted and resolved. Within six months, further rule refinement delivered an additional 4 percent match to PAF. This meant significantly more customers could be profiled and mailed post-implementation – offering the potential for an increased return on investment from direct marketing.
The card has been very effective in providing information not only about home delivery customers (on whom Iceland already held limited data such as a home address), but also on ‘shop and go’ customers who take their shopping with them and were previously anonymous to the retailer’s marketing systems.
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