Turning SKU-Level Receipt Data into New Revenue Streams with Zero-Party Loyalty Programs
Turning SKU-Level Receipt Data into New Revenue Streams with Zero-Party Loyalty Programs
Your SKU-level data is extremely valuable. Learn how to set up a path to monetizing it!
Receipts. SKU-level receipts. Are they exciting? Yeah, to some people! Definitely not to others. But they’re exciting to us, and hopefully to you, too. Basic SKU-level data helps businesses figure out which products are selling and offers insights into potential new product offerings based off of consumer behavior, purchasing patterns, and trends via time-series forecasting. Fancy-schmancy companies can get even deeper with methods like regression analysis. Combining SKU data with other demographic, market, and consumer data allows for AI and machine learning to work its magic.
For commerce businesses who have SKU-level data, there’s always more data you wish you had from customers, especially in this privacy-centric era, to make your analysis as spot-on as possible. For other businesses with troves of user data, acquiring SKU-level data from commerce businesses and vendors is a top priority. That means as a commerce biz, you’ve got a valuable monetizable resource on your hands in the form of SKU-level data.
Fortunately, whether you’re looking to acquire more data from your own users, or looking for the right permissions and license management to sell the data you have, TIKI’s form of zero-party data loyalty and reward programs just might be the answer you’re looking for.
So allow for me to intro this blog as if it were a movie trailer, because, uh, why not?
Ahem…prepare to embark on a mind-boggling journey into the extraordinary realm of SKU-level receipt data. In this perplexing landscape of business wonders, where logic and absurdity dance hand in hand, we shall unravel the hidden depths of knowledge and opportunity that lie within the enigmatic records of transactions. Once mere scraps of paper, these humble receipts have metamorphosed into digital treasures of unimaginable value. Join us on this mysteriously informative odyssey as we delve into the evolution of SKU-level receipt data, decipher its perplexing allure, and unearth the surreal benefits it holds for businesses and how it can be leveraged as a shiny new revenue stream. From mind-bending insights to uncanny marketing strategies, we'll navigate the uncharted territories of decision-making and customer experiences. So, fasten your seatbelts and prepare for an otherworldly adventure into the strange and captivating realm of SKU-level receipt data.
Phew. How was that? Alright, yeah, I’ll just show myself out.
To summarize, SKU data is valuable AF. When a customer gives that info to you willingly with the idea of getting something in return, it becomes zero-party SKU-level receipt data (fancy!), and ZPD is about to be all the rage.
If you’ve got it, and you’re not monetizing it, read this. If ya don’t got it, and you want it from someone else, or want to incentivize users to allow your business to get the most out of your SKU-level data, also read this.
Unveiling the Value of SKU-Level Data
In the realm of data, there exists a gem called SKU-level data. Its value shines brightly, distinguishing it from the data provided by banks or fintech companies. SKU-level data takes us beyond generalizations and into the intricate details of individual products. It's like comparing a thrilling adventure to a leisurely stroll—a world of possibilities awaits those who embrace its granular insights.
But what exactly are the levels of SKU? Imagine a well-structured hierarchy of product classification. At Level 1, we encounter broad categories like "Electronics" or "Apparel." Level 2 delves deeper, revealing subcategories within those broader categories. Level 3 takes us to specific brands or manufacturers, while Level 4 offers the most detailed variant of a product, encompassing attributes like size, color, or model. Going from level 1 to 4, an example is: Beverages, Carbonated Drinks, Coca-Cola, Coca-Cola 12-oz Cans (Pack of 6).
These levels empower businesses to optimize pricing strategies, tailor marketing efforts, and gain comprehensive insights into their product landscape. They are much more powerful than ordinary bank statements because it’s not just the how much, when, and where but also the complete details of the what and which. It’s sorta helpful to know someone or someone(s) spent $150 dollars at Nike last week. But it’s more valuable to also know which products they bought, which model or type, which size, the quantity etc, etc. By analyzing data at each level, businesses make informed decisions that drive growth and success.
But why stop at utilizing only your own SKU-level data? Businesses can benefit immensely from acquiring SKU-level data from other businesses. It opens the doors to benchmarking and competitive analysis, enabling companies to gain a holistic view of the market.
With access to a broader dataset, businesses can identify trends, uncover new opportunities, and fine-tune their strategies based on real-world insights. That’s a lot of power from one data source.
Naturally this invaluable resource becomes a catalyst for growth and innovation, propelling businesses ahead of the competition, hopefully. (Some poor folks will still find a way to butcher it, but c’est la vie.) And naturally in the biz world, powerful things cost money (usually), so if you’ve got SKU-level receipt data, you’ve got yourselves an asset.
And while this particular blog focuses on SKU-level, the even more specific item-level data which can track each individual item across its lifecycle is also extremely valuable but usually requires some pretty high-tech RFID to capture accurately.
Let’s dig deeper into why SKU-level data holds immense value for businesses, how businesses can benefit from acquiring and utilizing this valuable resource, and therefore, why businesses should consider turning their SKU-level receipt data into a new revenue stream. And uh, also how TIKI can help make this all happen. I wish I were writing this solely out of the goodness of my heart, but this is branded content. You get it. I’m trying here!
The Value of Acquiring and Selling SKU-Level Receipt Data
Whether you're a buyer or a seller, SKU-level data holds immense value. Here's why it's the coveted gem (cool band name) for businesses:
Deeper Market Insights, Enhanced Decision Making
SKU-level data equips businesses with a competitive edge by facilitating informed decision making. It enables data-driven strategies, empowering businesses to optimize product assortments, pricing strategies, promotional activities, and targeted marketing campaigns. This invaluable data acts as a crystal ball, guiding businesses towards success by providing actionable insights and increasing their chances of making profitable choices.
Targeted Marketing and Personalization
Leveraging data at the item level unlocks the power of targeted marketing and personalized experiences. By comprehending individual product preferences, businesses can curate tailored offers, provide personalized recommendations, and deliver targeted advertising that resonates with customers on a deep, personal level. This level of customization fosters customer loyalty, drives sales, and establishes long-term relationships based on a genuine understanding of customer needs and desires. Doesn’t that sound corny? It also will likely boost the hell out of your ROAS.
Demand Forecasting and Inventory Optimization
SKU data revolutionizes demand forecasting and inventory management for businesses. It enables accurate prediction of consumer demand, optimization of inventory levels, prevention of stockouts, and reduction of excess inventory. This data-driven approach acts as the secret recipe for cost savings, improved operational efficiency, and enhanced customer satisfaction, as businesses can meet customer demand promptly, minimize wastage, and ensure product availability when and where it is needed.
Competitive Analysis and Benchmarking
Harnessing SKU-level data offers valuable insights into the performance of individual products, enabling businesses to benchmark their own performance against that of competitors. This data unveils strengths and weaknesses, identifies market gaps, and fuels innovation by highlighting areas for improvement. Armed with this information, businesses can stay one step ahead in the cutthroat market landscape, adapt their strategies to outperform rivals, and position themselves as leaders in their industry.
Supplier Evaluation and Optimization
SKU-level data empowers businesses to evaluate supplier performance, analyze product quality, and optimize their supply chain. It enables data-backed decisions on sourcing, vendor partnerships, and negotiation of favorable terms. By utilizing SKU-level data to assess suppliers, businesses can drive cost savings, ensure consistent product quality, and enhance overall supply chain efficiency, thereby securing their position as reliable and trusted partners.
Strategic Partnerships
SKU-level data opens doors to collaborative opportunities and strategic partnerships. Businesses possessing valuable data can leverage it as a bargaining chip, attracting potential partners who crave the insights and advantages it offers. With the right parties, mutually beneficial collaborations and new revenue streams are possible.
Remember: the same reasons why SKU-level data is valuable to your business are precisely why it's valuable to others. But as the business holding the data, you possess a distinct advantage. You have what they want, and that puts you in a prime position to leverage this asset for growth and success.
Some things are industry secrets and not everything has a price. For everything else, there is a negotiation. ($0.08 per individual receipt, on average, in fact. That’s the current negotiated price. How many receipts do y’all have?)
So, whether you're considering acquiring SKU-level data to supercharge your business or looking to monetize your own data, the possibilities are endless. Let’s go deeper. How about, why would customers let you sell their receipt data in the first place?
Navigating Privacy Challenges, Empowering Consumers, and Driving Personalization
If we’ve said it once, we’ve said it a million times. This is the Privacy Era. Sort of. At least compared to what the world was like before. People want to trust the businesses they patron. They don’t want to get screwed. The Apples and Googles and governments of the world are ensuring data collection is no longer the wild, wild west. For my weekly dated 90s reference (hoop = business, basketball = customer data, Apple/Google/GDPR, et al. = Dikembe Mutombo).
It's hard to get data organically, and it’s hard to get it from a third party. Consumers now are opted out of data tracking as a default on iOS. Google is saying sayonara to third party cookies. Roughly 31% of people see a cookie banner and click yes beyond required cookies. Seems people really want to hoard their data. No, silly. They want to control their data. Ya know, make choices about what happens to it. They want something out of it. “No free rides,” as they say.
In the quest for personalized experiences, consumers' perceptions of privacy may exhibit a touch of cognitive dissonance. According to a captivating 2020 Statista survey, 38% of consumers surveyed would only share their spending and behavioral data with a company if it genuinely improved their overall experience.
Interestingly, while privacy is highly valued in isolation, customers' preferences can shift when they are enticed with a better experience. In fact, a remarkable 85% of consumers are willing to trade their data for discounts and coupons, highlighting the potential change in mindset when they recognize the value and benefits of sharing their information. Things can be better; as a business it’s your obligation to show them that possibility.
Today's savvy consumers desire access, control, and the assurance that their data won't be misused. Striking the right balance between data-driven personalization and consumer privacy is crucial to building trust and fostering loyalty. Fortunately, there's an effective way to navigate this challenge: loyalty and reward programs. These programs offer a mutually beneficial situation by incentivizing users to share their data while delivering personalized benefits in return. Coincidentally, we’re in the reward and loyalty program biz! Whodathunkit? Anyway…
According to Digiday, a staggering 75% of consumers prefer companies that provide rewards. It's no wonder that loyalty programs have become a popular avenue for enhancing the customer experience. In fact, 68% of customers see value in shopping with a brand when they receive personalized discounts based on their purchase history. These statistics illustrate the power of personalization and the impact it has on engaging and retaining customers.
In this dynamic landscape (take a shot every time you read some version of that prepositional phrase), businesses face the delicate task of finding the sweet spot between data-driven personalization and consumer privacy. By incorporating gamification into customer engagement strategies, brands can elevate the experience even more. The Manifest reveals that brands embracing gamification witness a remarkable 47% increase in engagement, a 22% rise in brand loyalty, and a 15% boost in brand awareness. These figures emphasize the importance of creating interactive and rewarding experiences that captivate consumers and forge deeper connections with the brand.
To succeed in today's data-driven landscape, businesses must adapt to the evolving consumer mindset. Transparency, control, and personalized benefits are the cornerstones of building trust and delivering exceptional experiences. By leveraging SKU-level data in a responsible and privacy-conscious manner, businesses can empower consumers while elevating their own marketing efforts.
As we navigate the complex realm of data privacy and personalization, let's remember that the consumer's needs and preferences should always take center stage. By offering improved experiences through loyalty and reward programs, businesses can establish a strong bond with their customers, fostering loyalty, advocacy, and sustainable growth. It's a delicate dance, but by treading carefully, businesses can create a harmonious blend of privacy, personalization, and customer satisfaction.
Incentivizing Customers: Loyalty Programs and SKU-Level Data
Ah, the world of customer incentives and loyalty programs—where businesses have cracked the code on encouraging customers to willingly share their SKU-level receipt data. Loyalty programs offer customers exclusive perks and tailor-made deals, while businesses dive headfirst into the treasure trove of zero-party data (or in this case, zero-party SKU-level receipt data…cool band name!)
Loyalty programs play a crucial role in actually giving customers a good reason to share data or consent to data being resold to other parties. It's a mutual affair, where customers bask in the glory of special rewards and a more personalized shopping experience. People gravitate toward the allure of unlocking secret discounts and feeling like a VIP. These enticing incentives make customers more than happy to participate, share data, and give new permissions to existing data they create, so long as your offer hits the mark.
But hold up, let's not forget the golden opportunities this brings to businesses. SKU-level data is like a secret decoder ring that unlocks a deeper understanding of customers. It reveals their purchasing patterns, unveils emerging trends, and empowers businesses to craft targeted marketing campaigns with precision. Attribution is harder than ever these days, but it doesn’t have to be!
Loyalty programs don't just dish out rewards; they spice up customer engagement and fuel growth. Being part of these programs is like joining an exclusive club—a symbol of a special bond between customers and the brand. And the best part? It's a format for repeat business, increased app downloads and engagement, and a passionate customer base.
Loyalty programs that ensure that customers have full control over their data are the future. I have a vested interest in that statement, but I like the scouting report. I’d draft the guy, metaphorically speaking. First round. Don’t tempt me.
Transparent privacy policies, clear communication, and a fair value exchange build trust and empower customers to exchange data for any number of use case. It's about creating a safe-haven where customers can comfortably share, and businesses can thrive. Ain’t negotiation fun?
Alright, case study time! Did I lose my mind writing this one? Sorta, but I was in too deep with the joke!
Unleashing the Power of SKU Data for Revenue Growth at Market Basket (Mahket Baskit)
Editor’s Note: Per usual, we didn’t work with Market Basket. This is a mock case study. Maybe Market Basket is already dishing out SKU data for profit. But it’s a good example. There’s Lots of SKU at the Grocery Store(cool band name).
Da Problem
Unleashing the Hidden Potential of SKU Data - A Golden Opportunity for Businesses Everywhere
Hey there, folks! Today, we're divin' headfirst into the wild and wonderful world of SKU data and the amazin' treasures it holds for grocery stores like the iconic Market Basket (Mahket Baskit), a chain supermarket and cult staple in the northeast US of A.
When it comes to SKU, grocery stores are kings Think about every dang variant of item they got. You picturin’ it, kid? Each product, from fresh produce to pantry staples, has its own special code called a Stock Keeping Unit (SKU). This SKU data packs a punch, containin' heaps of valuable info about customer preferences, buyin' patterns, and the ever-evolvin' market trends.
But here's the real game-changer. While Market Basket and other grocery stores are sittin' on this wicked valuable SKU data, they often face a challenge in unleashing its full potential. Ya see, it's not just about sellin' groceries anymore. Market research firms, consumer goods manufacturers, online retailers—they're all droolin' over this data goldmine. They're itchin' to get their hands on SKU-level insights so they can better understand customer behavior, fine-tune their product offerings, and make smarter strategic moves.
And that's where the problem lies, my friends. Market (Mahhhket) Basket (Baskit) has this incredible treasure trove of SKU data, but they haven't had the means to share it beyond their own operations. Not like they’d want to share it. I mean, sell it. They haven’t got the proper consent to re-sell the SKU data for profit.
But fear (feah…ok I am gonna stop now, to an extent) not! Our heroes at Market Basket saw the opportunity and they seized it with pride, honor, and a touch of that famous New England spirit. They realized that by unlockin' the power of permissioned SKU data and openin' up a pathway for businesses in all kinds of industries to access it, they could not only create a whole new revenue stream but also forge amazin' partnerships along the way.
Da Solution
TIKI - Makin' SKU Data Shine, Rewardin' Customers, and Powerin' Partnerships (..pahtnah---nevermind)
In their quest to unlock the hidden potential of SKU data, Market Basket teamed up with TIKI, the revolutionizin' platform that knows a thing or two about data monetization. With TIKI's mighty Software Development Kit (SDK), Market Basket embarked on an excitin' journey to transform their loyalty and reward program into somethin' truly extraordinary. By usin' the SDK, they crafted temptin' offers that enticed customers to allow Market Basket to re-sell SKU-level receipt data in exchange for personalized rewards. And with each agreement, a special data license was formed, documentin' the purchases of Market Basket's loyal customers.
But hold on, there's more! TIKI's powerful Application Programming Interface (API) came into play, makin' the management of these data licenses a breeze. It gave Market Basket a seamless way to search, organize, and enforce the licenses, ensurin' compliance and smooth data transactions. With TIKI by their side, Market Basket became the masters of securely sharin' permissioned SKU data with interested businesses, sparkin' partnerships and unlockin' new revenue streams.
The Fahk Happened Then, Kid? You Talk too Much. Wise Guy. (Outcome)
Market Basket Runs on TIKI (trademark pending..jk)
And what came out of this fantastic collaboration between Market Basket and TIKI? Nothin' short of remarkable results, my friends! Market Basket harnessed the power of their SKU data, turnin' it into a valuable asset that not only enhanced their own operations but also opened doors to lucrative partnerships. By offerin' permissioned SKU-level receipt data to interested businesses, they fostered a vibrant ecosystem where insights flowed freely, resultin' in smarter decision-makin' and enhanced customer experiences.
Thanks to TIKI's SDK and API, Market Basket not only monetized their SKU data but also deepened their connections with their customers. The personalized rewards and tailored offers created a stronger bond, fosterin' loyalty and engagement. Money received from data sales gets funneled back into improving the customer experience and optimizing their strategies and initiatives, or even takes the form of the discounts, coupons, cash-back, or loyalty points offered to customers Or they can pocket some or all of it. It call comes down to the agreements each individual customer makes.
So, my friends, the collaboration between Market Basket and TIKI unleashed the power of SKU data, drivin' revenue growth, fosterin' amazin' partnerships, and takin' the customer experience to new heights. It's a story of innovation, collaboration, and the wise use of data to create a win-win scenario for everyone involved. If you're sittin' on a treasure trove of SKU data, it's time to discover the TIKI way and unlock its true potential.
‘Til next time!
