As an avid book shopper I frequent Barnes and Noble and am a member of their loyalty program. Loyalty programs are something that companies love because it gives them data on their recurring customers, such as purchases, and gives them a direct channel to market to them (either via email or text depending on the customer’s chosen preferences). I love getting my coupons via email, and I know they used to track my usage because they were able to determine early on that a 25% or more coupon was what it would take to get me into their store as I would redeem those at a higher rate than the 15% ones they would send. So I know they were paying attention to my coupon usage (tracking my conversions).
Along with their direct marketing they seemed to take a cue from Amazon as they give you with your receipt a “You may also like…” receipt of book suggestions. This is great for helping you find books similar to what you just purchased. The problem is they don’t seem to be going the extra step and matching that data up with what I’ve previously purchased. This is a problem I pointed out before and it still seems they haven’t adapted.
As mentioned I’m a Barnes and Noble Member so every time I purchase a book they scan my card. I almost exclusively purchase books from B&N and have been a member for many years, so their data on me should be superb. However, I purchased a book that was the final in a trilogy, of which I’d purchased the last two at this very store, and can you guess what happened? If you guessed that it recommended I buy the first two in the trilogy, you are right.
For a store as large as Barnes and Noble this is unacceptable. Your system should be able to match my Member Number against my previous purchases and weed out those titles from your suggestions. As an avid reader who is always looking for new authors and books, suggestions like these are helpful and do lead to more sales. However, when you suggest that I purchase books I’ve already purchased, it’s like you don’t even know me. It’s the real world equivalent of your spouse not only forgetting your birthday, but buying you the same gift from last year when they do remember.
I may be picking on Barnes and Noble here, but this lesson applies to all businesses. Using your data to its fullest advantage is what is going to separate you from the crowd. From a marketing stand point databases with customer shopping history have been of great benefit in terms of being able to target your marketing message more individually. This has been made easier by the fact that computers can now perform all the calculations and cross-referencing in the background in a matter of seconds. Companies like Amazon use these even when you’re just searching for items. Stores that learn to use their data better will be more successful, those that don’t may be left behind. The great thing about the advances made in computing is that even small companies with some not-too-expensive software can make targeted suggestions. The question your company should ask itself is: Are we using our data to its fullest? Do we know who our customers are and what they want?
Joe Robles 