Loyalty Generators, compact devices with a touch screen, were installed in three Korablik stores−a large Russian chain that sells children’s goods. Customers identify themselves by scanning a loyalty card, and then he or she has an option to pick up and print the relevant coupon out of the list generated individually for him or her on the device’s screen. The coupon contains detailed information about the item, the amount of discount and the valid period of the offer.
The technology behind Loyalty Generators was developed by the IT company Synqera. Filipp Shubin, COO for Synqera, participated in a compelling Q&A with Loyalty360 to discuss Loyalty Generators.
What are Loyalty Generators and what prompted Korablik to test them in three of its stores?
Loyalty Generator is a compact printer with a touch screen located at the store entrance or next to the product shelves. The device is backed up with Synqera software for providing targeted product offers, coupons and loyalty program details to the customers–all in real time. To make targeted offers truly personal the system uses the same algorithms as Amazon does in online: analyzes customer shopping history, his profile in loyalty program, takes into account the average spending and purchase frequency, predicts age of customer children–and many more factors.
Korablik has numerous amounts of special offers and it is bothering customers to look through them to find the one they need. Synqera software makes it easy for customers to find what they need by simple scanning of their loyalty card through an integrated reader, choosing the most interesting offers among targeted top-6 pre-selected by the system to save money and time.
Loyalty Generators are just a part of Synqera solution–the software platform can be leveraged through various hardware devices specially designed for POS or product shelves, and distant channels such as email or mobile app. And what is even more attractive, all relevant channels can be managed through one single back interface developed by Synqera, allowing full-circle campaign management.
Together with the expertise of Synqera team in retail, big data, and media communications, it was completely enough to make Korablik particularly keen about piloting the solution–for higher sales and customer loyalty.
What impact do Loyalty Generators have on the customer experience/customer loyalty?
Synqera creates a compelling in-store customer experience.
First of all, the customer gets the best relevant offers; right in time he needs them (even if he doesn’t recognize it yet). On the one hand, the solution allows to manage sales funnel, and on the other−to analyze customer needs and to deliver the solution to each particular customer through the most convenient communication channel.
Secondly, the customer is simply better served: The interactive screen of Loyalty Generator is also used for 
visualization of accumulated loyalty bonuses, loyalty card activation and getting product details (such as quantity in stock, materials and other details) by scanning its barcode.
The platform helps Korablik to maximize campaign efficiency and minimize churn rate–also online, as the next step planned is to intersect online and offline customer data in order to effectively manage cross-channel campaigns.
Can you explain how the personalization angle of this technology works?
Synqera solution collects all available data from the retailer: purchase data and profiles of customer in loyalty program (no personal data id disclosed in process). The software analyzes this big data in order to find out:
- Purchase preferences of the each customer (what this customer used to buy),
- His/her behavioral patterns (purchase frequency, response rate to the previous promo activities),
- Behavioral patterns of other customers with similar shopping habits (what this customer would like to try from the product range he never purchased before),
- Customer needs (for example, the customer shows trend of spending increase, so it makes sense to him to consider more premium brands).
What does Customer Experience and customer-centricity mean to Korablik as an organization?
Korablik is one of a few Russian chains that realizes that the key success factor nowadays is not just response to customer needs–but its prediction.
The chain aims to operate offline and online stores as single customer front-end where every customer gets personalized offers and services through the most suitable communication channel.
What metrics will be used to gauge ongoing performance of the Loyalty Generators?
Personalization came from online world, and the metrics are kind of similar in offline: The view rate transforms to the view of product offers on the device screen, the click rate–to the number of unique printed coupons/offers, while purchase rate transforms to the number of coupon/offer-based purchases.
We also know the exact target groups we are aiming to and the response rate within the each of the groups, analyze how the systems impact average check and purchase frequency of the each particular customer, and can transparently track the effectiveness of marketing communications.