During the last five years, companies have heavily invested in their presence on social media and social networking services the likes of Facebook and Twitter, with the hope of converting people’s views, likes and shares into actual sales. The assumption is of course, that the social media giants provide the most efficient media channels to reach the highest visibility and conversion rate at the lowest cost. However, is it possible to measure or prove in any way that likes and shares actually increase sales? The answer is most definitely negative, as companies still do not have any clue of how much of their marketing efforts on social media affect their profits.
In a world where consumers are increasingly bombarded with marketing campaigns both offline and online, attention spans dedicated to such information have decreased dramatically. People are more and more actively avoiding unnecessary information, often by utilizing ad-blocking software or data-saving modes on their internet browsers. Therefore, marketers are desperately in need of an effective new tool to communicate with customers and increase sales. What is more, in a data-driven economy, any futuristic marketing tool cannot be considered seriously if it does not offer proper traceability and measurability. This is how Transaction Driven Marketing comes into the picture.
Transaction Driven Marketing (hereafter referred to as TDM) means marketing based on the customer’s transaction data. Simply put, customers consciously lend their transaction data, which is most often collected through their pay-cards, and in return receive rewards that actually reflect their brand preferences. This is achieved through intelligent algorithms that after being fed enough historical purchasing data can provide statistically validated predictions of brand preferences and upcoming buying behavior. One may confidently say that TDM is the new way companies can build both customer loyalty and brand relevance. The holy grail of any struggling marketer!
The demand for a new data-driven marketing tool is especially high among businesses with physical stores. In recent years, online stores have been winning market shares at the expense of brick-and-mortar. One key factor has been that online businesses have been proactively data-driven whilst physical stores have generally been lagging behind due to their limited capacity to collect real-time purchasing data. But the payments ecosystem is rapidly evolving as players introduce new products, digital channels and technologies. In fact, technological advances such as cloud computing, agile development and advanced analytics are driving the convergence of payments, commerce and loyalty. Moreover, the declining usage of hard-cash in a digitizing world is undoubtedly aiding the collection of valuable purchasing data, paving the way for TDM.
From their office in Stockholm, Wrapp has been patiently building the solution of the future which aims to change the way retailers do marketing and transform the game forever. After a long-standing lead of Facebook and Google, 2019 is set to be the birth year of a third advertising platform. Wrapp is prepared to shock the world of retail with the power of TDM, the new approach of optimizing brand communication through data for building loyalty and reaching the highest possible return on investment (ROI).
TDM allows retailers to view transaction data of their customers and improve their marketing strategies in real time which is great. But above all, relevance is the key ingredient to its effectiveness in building customer loyalty. The transaction data offers the ability to build stronger connections with potential customers by providing them rewards for their loyalty. This feature represents a solid “hook” that increases the amount of returning customers.
Hence, TDM answers the pivotal question that marketers have been asking themselves for decades: when does the customer make financial decisions and how can we impact that decision? TDM is the missing link that connects intent and actual behaviour. Furthermore, TDM offers a solution for companies to grant rewards, namely incentives, to their customers, therefore, replacing outdated and expensive loyalty programs. Thus, transaction driven marketing offers a smarter more personal way of seeing and rewarding potential and loyal customers, which are a business’s actual customers.