Alliance launches analytics firm
Alliance Data Loyalty Services has transformed its in-house analytics arm, Precima, into a full analytics firm of the same name.
Precima allows retailers to segment and analyze data on shopping behavior to pinpoint their most profitable customers. The firm also helps retailers decipher what motivates shoppers and how to keep them loyal.
“There is a wealth of underutilized customer information in the marketplace around loyalty programs and card programs, particularly in the US, and we think the expertise we've developed over the last 16 years makes us well-positioned to help companies take full advantage of that information,” said Bryan Pearson, president of Alliance Data Loyalty Services. “Retail competition is as fierce and challenging as ever, and we see customer-centric retailing as a way to improve business returns for companies, specifically by focusing on the marriage between merchandising strategies and operational strategies.”
Pearson went on to say that the launch is a great complement to Alliance's loyalty consulting and data business, and it formalizes the analytics work the company has undertaken in-house for years.
“What we've done is crystallize it into a software application and also a system of processes in such a way that we are able to provide a critical link between consumer strategy and merchandising strategy by bringing together two very valuable data sets: management data and loyalty data,” Pearson explained. “That allows that nuance of customer-centric retailing, so retailers can make better decisions about promotions and pricing, assortment and products and how to optimize specific categories and even make operational decisions about store layouts.”
The firm works with retail partners of Canada's Air Miles Reward Program, which is also operated by Alliance Data Loyalty Services. Other clients include A&P and Safeway grocery stores in Canada and other high-frequency retailers.