DANVILLE, Calif. -- Andronico's Market has been piloting transaction-management/customer-relationship-management software in its flagship store here that the 10-unit independent operator plans to expand to its other stores soon.
The software system allows Andronico's to probe the reasons customers increase purchases, decrease purchases, and purchase at all.
"We do hope to roll it out next year in our other stores," said Cathy Mullally, director of electronic marketing for Andronico's, which is based in Albany, Calif. The transaction-management CRM system lets Andronico's understand customers' purchasing habits, and to send them targeted incentives both at the point of interaction in the store environment or at a kiosk, once a customer presents a loyalty card. Stored at a third-party targeted customer-marketing service bureau in Bristol, Pa., the customer-transaction data is available to Andronico's through a live, secure Internet connection.
"I like to see predictive modeling that will tell when a customer first becomes a premier Andronico's customer," Mullally said. She explained that while all shoppers are invited to join Andronico's premier customer loyalty program, the store is using its software system to reward customers based on their individual shopping preferences. "If you're a vegetarian, I won't send you coupons for steak," she said.
By using the CRM software system, Andronico's is joining many supermarkets with the capability to provide store managers with the data and transaction power to serve targeted customers efficiently.
This can be a delicate balancing act in that while Andronico's headquarters staff now has the technology to store and analyze customer data, it can make it available to store managers down the road, enabling them with the computing power to make on-the-spot decisions.
"We want to make sure we're filling the needs of our customers. I can create an infinite number of ways to look at different customers," Mullally said. The CRM product allows for the collection of data to let Andronico's understand what items customers buy, and to understand who each individual is on a micro level.
Comprehending customers' purchasing behavior includes knowing what items they buy as well as their prior purchasing behavior. Andronico's can then offer a customer with a seven-month toddler coupons for baby food or other suggested items either in store or at the kiosk.
"It replaces the corner grocer knowing each customer. It allows us in a high-tech way to get back into high touch," Mullally said.