Loyalty management in traditional trade - Tomasz Makaruk

Loyalty management in traditional trade

Recently, we gave a lecture entitled “Data journey, i.e. digitalization, automation and data prediction in B2B incentive programs.” During the Loyalty Planet Conference, Karolina Rojecka, Market Analyst & Project Manager i360, shared how we manage the data workflow in B2B incentive programs at i360 using digitalization, automation and prediction.

Loyalty management in traditional trade - Tomasz Makaruk

The aim of the presentation was to explain the experience of a B2B project implemented for an FMCG manufacturer that handles more than 50% of its volume in the traditional trade market. The entire decentralized system of sales intermediation, where the life of a product begins on the production floor and then passes through several intermediaries before it reaches the retail store – in the right place, with the right stock levels and promoted in the right way – requires proper management of each stage, which is managing the loyalty of the sales intermediaries.

Digitalization

Speaking about digitalization – we mean the stage of registering participants for the program. Since the participants of B2B projects earn rewards at the level of 5-digit amounts per month, this obliges the organizers of the programs to meet all the requirements resulting from the legislation, the subject of which is signing a cooperation agreement. A platform for the electronic circulation of contracts, which comprehensively digitizes the entire process, is the universally used solution. We are talking about a system that optimizes many steps leading to the establishment of formal cooperation with a contractor while allowing for an individual approach to the set KPIs or conditions of collaboration.

Automation

The next stage of the data flow process in B2B incentive programs is verifying the participants’ activity and rewarding them for achieving the set goals. In the presented project, we faced the challenge of over 100 different transaction systems reporting the movement of participants. We were presented with a plan to automate two stages – data integration and processing. Data integration was automated with a design that automatically pulls data from distributors’ trading systems at specific time cycles. It then unifies them and creates one standardized set of data. On the other hand, processing means creating algorithmic models that automatically process the collected set. This process results in a more than fivefold reduction in data processing time and dynamic response to the participants’ needs, such as immediate rewards for demonstrated activities.

Prediction

The final stage, which includes data workflow management, is prediction. The visual result of the study is the intuitive dashboards. Most projects are based on “just-in-time” dashboards. This means analyzing historical data and presenting it dynamically. To meet the needs of studying the sales results of e.g., seasonal products, mechanisms have been created that predict data through AI mechanisms. All this is to create a competitive advantage so that we can realistically plan further marketing activities and respond to changes in the market in a timely manner. Creating an automated solution is also vital to support planning activities for the people responsible for estimating and formulating KPIs for subsequent periods.

i360 Loyalty Software

The system created this way – i360 Loyalty Software – provides the necessary basis for building an effective consumer program. A consumer program will only be successful when the product is on the shelf, and our solutions offer that.

 

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1 thought on “Loyalty management in traditional trade

  1. This is a great article on Loyalty management and training as retention of consumers is an important aspect for any business.

    One of the loyalty program in UAE is BOUNZ Rewards

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