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Extending Loyalty Programs with BI Functionalities A Case Study for Brick-and-Mortar Stores

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Reference

Kucklick, J.-P., Kamm, M., Schneider, J., & Vom Brocke, J. (2020). Extending Loyalty Programs with BI Functionalities A Case Study for Brick-and-Mortar Stores. Paper presented at the 53 rd Hawaii International Conference on System Sciences 2020, Hawaii. (VHB_3: C)

Publication type

Paper in Conference Proceedings

Abstract

Effective customer loyalty programs are essential for every company. Small and medium sized brick-andmortar stores, such as bakeries, butcher and flower shops, often share a common overarching loyalty program, organized by a third-party provider. Furthermore, these small shops have limited resources and often cannot afford complex BI tools. Out of these reasons we investigated how traditional brick-andmortar stores can benefit from an expansion of service functionalities of a loyalty card provider. To answer this question, we cooperated with a cross-industry customer loyalty program in a polycentric region. The loyalty program was transformed from simple card-based solution to a mobile app for customers and a webapplication for shop owners. The new solution offers additional BI services for performing data analytics and strengthening the position of brick-and-mortar stores. Participating shops can work together in order to increase sales and align marketing campaigns. Therefore, shopping data from 12 years, 55 shops, and 19,000 customers was analyzed.

Persons

Organizational Units

  • Institute of Information Systems
  • Chair of Information Systems and Innovation

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