Customer-Centric Approach Focuses on the Data

It’s also important to identify and segment your customers based on loyalty, again grouping them into four categories: nonshopper, occasional, secondary, loyal. The use of loyalty cards are a good way to capture transaction history, helping you to better segment your customers.

Sometimes it’s necessary to go outside of your existing product assortment and pricing to obtain new segments, Pereira advised. He cited the example of a catalog company whose secondary and loyal customers were established, but were aging. In order to grow the brand, the cataloger needed to capture a new customer segment. By developing a new product line and adjusting price points, the cataloger was able to attract a younger customer segment, and thus grow the brand.