Customer Loyalty, Data-Driven Style

couple-shopping-healthfood.jpg

With more customer data available than ever before, the challenge is no longer getting customers to opt-in to email newsletters. Rather, businesses must collect all that shopping data  — and take smart action in response.

Body Energy Club is a company based in Vancouver, British Columbia. This retailer of health products and smoothies wanted to expand its offerings to capture a slice of the competitive American market, and utilized a data-driven customer loyalty program to gain and keep customers.

A New Loyalty Program for a New Market

Although the company is well-known in Canada, Body Energy Club knew it would need a different approach to adapt and expand across the border.

“While we’ve been around in Vancouver for 14 years and everyone knows me, nobody knows us in California, and I don’t want to wait 14 years to build it up like I did in Vancouver. I wanted to speed things up and turn a profit within the first year,” says founder Dominick Tousignant.

Body Energy Club decided to implement a new customer loyalty program. After all, repeat customers spend 67 percent more on purchases than new customers do. Three priorities topped the list of requirements for the new program:

●    Cloud-based: With brick-and-mortar locations across North America, the program needed to pull and analyze data in real time.

●      Scalable: Body Energy Club was new to the U.S. market, but wanted to start strong and grow quickly.

●      Reliable: The company needed a complete solution that didn’t require much expertise to maintain.

Tousignant chose Thirdshelf, a developer of cloud-based, scalable customer loyalty platforms. Thirdshelf’s solution runs on an Intel Xeon E5 v3 processor, which is designed for architecting next-generation data centers. Its software-defined infrastructure is made for efficiency, performance, and agile delivery across both cloud-based and traditional applications. The processor was the perfect choice for the high-performance computing, networking, and storage that Thirdshelf required to drive the platform Body Energy Club would need to grow.

How It Works: Using Data to Drive Relationships

Thirdshelf’s platform integrated with Body Energy Club’s POS system to capture purchases. The loyalty program then used that purchase data to develop sophisticated marketing campaigns to keep new customers coming back  — and keep returning customers engaged.

Based on the Google Cloud Platform, the loyalty program scaled easily as Body Energy Club’s new customer base grew and the collected data grew exponentially.

The Intel Xeon-powered platform quickly analyzed large datasets to find trends. This data was used to create personalized offers that Body Energy Club knew its customers would appreciate — which in turn drove customer retention. In fact, the redemption rate of its promotions rose to 16 percent. The industry average is 0.13 percent.

Customer Loyalty: Not Just for Big Business

Historically, only big businesses had the budgets and technical teams to properly collect and analyze growing piles of customer data.

With Intel and Thirdshelf’s cloud-based solution, Body Energy Club was able to focus on its product selection and customer service, rather than worrying about technical issues and updates.

What’s New — and What’s Not

Body Energy Club’s story isn’t uncommon. What’s new is the ability of small businesses to use customer data to drive sales in ways that were previously only available with big business budgets.

Just eight months after its U.S. launch, Body Energy Club’s integrated rewards program saw sales growth of 400 percent per day. And the open rate for email offers rose to 85 percent, well over the industry average of 18 percent.

Thirdshelf is growing, too. “The realities and the transaction levels for different kinds of retail stores are different, so the way you engage your customers needs to be different, too,” says CTO Antoine Azar. The company is currently working on industry-specific vertical marketing solutions.

We invite you to learn more about Intel’s IT solutions for small business. You can also join and continue the conversation on Twitter.