Revealed: how Coles and Woolies will wage war against Aldi by using YOUR data as their secret weapon
- Woolworths and Coles use collected information about customers to claim dominance
- They plan to use the massive amounts of data to profile and target their customers
- The supermarkets invest in data analysis and artificial intelligence
Woolies and Coles will use customers' buying habits to encourage them to buy more products, says Credit Suisse.
The supermarket giants that have been collected invest heavily in data analysis to help them get ahead of their competitors, according to a financial services company.
Coles and Woolies have a combined market share of 80 percent and have harvested a wealth of data through loyalty programs, apps and online shopping and
Supermarket giants Woolworths and Coles are going to use customer data to maintain their dominance over smaller Australian stores
Australian supermarkets plan to use the massive amounts of data they collect via customer reward cards to profile and target their customers
The new technology systems will process data collected through apps, online stores and loyalty programs. The age reported.
Credit Suisse retail analyst Grant Saligari said that a way in which customer data can be used would be aimed at people with emails informing them when products they had purchased in the past had gone on sale.
The specific target marketing, however, was expected to become more detailed and sophisticated over time.
Mr. Saligari said that supermarkets can offer discounts to shoppers who are known to be price sensitive, but still charge the full price to those who buy the product, regardless of whether it is discounted or not.
Taking into account how customers respond to promotions, Coles and Woolworths can allocate promotional spending more efficiently, the report said.
A large report published by Credit Suisse on Wednesday revealed that the two supermarkets had plans to tap into information and make their marketing more effective against Aldi
Artificial intelligence and data analysis will also be able to measure the success of marketing tactics.
"Allocating spending to intermittent buyers who are likely to change a competitor's purchase would probably be a better use of promotional spending than a comparable promotion to a loyal customer," Saligari said.
The report found that for every dollar spent in supermarkets, 20 cents are spent by the company to promote that product.
Taking into account how customers respond to the promotions, Coles and Woolworths will be able to distribute promotional expenses more efficiently
Mr Saligari said the data analyzes would give the large supermarkets a chance to assert their dominance against smaller competitors.
& # 39; The respective Rewards and Fly Buys programs from Woolworths and Coles offer an unparalleled opportunity to engage with customers on a unique basis & # 39 ;, said Saligari.
& # 39; Which, when linked to the huge transaction volume through their stores and digital properties … provide an almost unprecedented amount of transaction data to leverage growing AI analytical skills. & # 39;
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