Sears emulates on Big Data and Loyalty Programs

Sears Holdings is betting on its innovative rewards program to spur the company’s growth. It is a path that Walmart can’t match because it doesn't have a loyalty program — its best hope of understanding customer identity is through customers who use its credit card. Sears has a very intensive big data program to drive customer loyalty; the sophistication surprised me and should interest investors.

Dr. Phil Shelley, CTO at Sears Holdings Corporations about Sears’ use the open-source Hadoop analytics platform kind of technology behind this award-winning program.

Sears is doing amazing things with technology; it has a hit on its hand with its loyalty program. Retail trade magazines have focused on the loyalty program, the technology, and the significant investment which Sears has made as indicators of improved performance in the future.

In naming Sears Holdings the Master of Enterprise Loyalty (Global) COLLOQUY said the company recognized that it had great brand recognition including Sears, Kmart, Lands’ End, Craftsman, Kenmore and DieHard, but it lacked customer recognition.

“Their best customers didn’t know they were best customers… a risky situation in a love them or lose them retail environment…

“The solution was 3 years in the making, which included programming that would capture, analyze, and report on customer activity at an individual level, across all 4,000 locations. The ensuing information would enable Sears to provide the differential treatment and personalized attention their best customers deserved…

“Results: Sears achieved an active member base in the 8 digits, exceeding the projected 36 month membership target in 17 months. Member spend is now identifiable, enabling SHC to understand member purchase history, leading to more relevant and targeted communications and offers. And just as anticipated, members shop more often and spend more per transaction than non-members.”