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Woolworth’s using Big Data to drive Customer Loyalty

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woolworthAustralia’s largest retailer is preparing to roll out a $1 billion supply chain overhaul, Mercury II, which will slash the cost of transporting groceries and general merchandise across the country, delivering productivity gains similar to those of the Mercury I program almost 10 years ago.

The retailer is also believed to be planning to tweak its Everyday Rewards program, according to a recent report in the Sydney Morning Herald, to improve customer loyalty, including signing up new partners and shifting the focus away from Qantas Frequent Flyer points to immediate rewards such as shopping vouchers.

Woolworths is also using its 50 per cent stake in data analytics company Quantium and information about consumer shopping habits gleaned from credit cards and loyalty cards to better identify growth opportunities for all its divisions, both online and in store.

While several analysts trimmed growth forecasts after Woolworths’ annual results last month, citing margin pressure and increased competition from Aldi and Coles, other brokers have increased their forecasts after meeting management during investor roadshows over the past few weeks.

Credit Suisse believes Woolworths’ earnings growth could accelerate from about 6 per cent in 2014 to 10 per cent or 11 per cent over the next five years, as the retailer leverages its investments in big data and the supply chain to gain market share in food and non-food markets.

Read more: http://www.smh.com.au/business/woolworths-targets-supply-chain-customer- loyalty-gains-20140924-10lgfo.html#ixzz3Ec6tf4ZR
October 1, 2014
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