Tag Archives: Spending

Big Data Creates Opportunities for Small to Midsize Retail Vendors

Big Data Creates Opportunities for Small to Midsize Retail Vendors through Collective Affinity Marketing outside Financial Institutions.

In the Harvard Business Review, there is an article, Will Big Data Kill All but the Biggest Retailers?  One idea to mitigate that risk is to create a collective of independent retailers under affinity programs, such as charities, and offer customers every N part of their purchase applies to the charity to reach specific goals as defined by the consumer.   Merchants, as part of this program, decide their own caps, or monetary participation levels.  Consumers belong to an affinity group, but it’s not limited to a particular credit card.  The key is this transaction data is available to all participating merchants for the affinity.  Transaction data spans all merchants within the affinity and not just the transactions executed with the merchant.

Using trusted, independent marketing data warehouses independent retail vendors share ‘big data’ to enable them to compete and utilize the same pool of consumer [habitual] spending data.

Affinity, marketing data companies can empower their retail clients/vendors with the tools for Business Intelligence and pull from the collection of consumer data.  Trusted, independent marketing data warehouses sprout up to collect consumer data and enable it’s retail vendor clients to mine the data.

These trusted loyalty affinity data warehouses, not affiliated with a single financial institution, as previously implemented with credit cards, but more in line with, or analogous to, supermarket style loyalty programs, however, all independent retail vendors may participate OR may cap these affinity program memberships for retail vendor from small to mid-size companies.

Note: Data obfuscation could be applied so customer identification on fields like social security number will not be transparent, limiting any liabilities for fraud.