Big Data – a new theory or just common sense.
My local take away coffee shop owner asked how he might find some new customers given there was a new café opening up in the street and he expected to loose some existing customers to them.
I suggested as a start he get a handful of his loyalty cards, tick the first 9 boxes leaving the next coffee being the FREE one and take them to the Thai Restaurant on the corner of the street.
The Thai restaurant only opens for dinner and the coffee takeaway only opens until lunchtime so they don’t compete but they do share the same types of customers – local people with finances to eat and drink out. I suggested the restaurant staff could ask their regular customers if they knew of the coffee shop and if not then give them FREE coffee as a reward for the regular patronage. The restaurant staff should write the customer’s name on the card and put their restaurant logo next to it. This way the coffee shop owner can measure the success rate when the cards are presented. With a real cost of around $1.20 to produce a cup of coffee it is a relative cost effective acquisition strategy and importantly easy to measure the ROI is the second row on the loyalty card starts to fill.
So cognizant of privacy laws and collection statements, how is that different to a Corporate washing their customer data with another and making improved offers to their customers? It might not be called ‘big data’ when 2 small businesses work together but it is big for them and common sense in a street where there are only 6 other businesses.