Mounting evidence for secondary revenue in retail
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through data and being able to sell them more on the back of this.” She added: “If you guess and trial
everything with adjacent offers then you risk alienating the customer and potentially stopping them from buying the brands they regularly buy. Data improves this and you can learn from it. The perfect example is Amazon’s: ‘If you bought this then you’ll like this.’ But to do this retailers need a broad range of products.” For those retailers with smaller ranges
“Cinemas are also very good at getting people to buy things such as a large a fizzy drink when they arrive, which can almost cost more than the cinema ticket itself.”
PERSONALISATION Recent secondary revenue developments have centred on personalising the experience of the customer when on the airlines’ websites. Finn suggested: “Traditionally secondary
revenue was presented in the ticket booking flow but now the thinking is around other touchpoints. If a flight is booked then do not necessarily look to sell them the hotel straightaway. It is becoming a lot more personalised. If you can get into the psyche of the customer, then they could be sold more goods to.” Personalisation should absolutely be the
key to any secondary revenue that is driven through loyalty and reward programmes. Edwina Dunn, chief executive of Starcount
and co-founder of Dunnhumby, said: “Loyalty programmes drive secondary revenue by retailers knowing more about their customers
who inevitably have much more limited transactional data, Dunn recommends they investigate tapping into some of the new open sources of data that will create the opportunity for companies to know what customers do outside the actual proprietary transaction. She said: “This includes social media as well
as government data and banking industry APIs so things like credit card data will all become accessible. The reality is 95% of companies are focused only on their own data but they need to tap into this open source data to get the real pulse of their customers.” Knowing your customer is at the heart of
all loyalty programmes and all the disruptor retailers know their customers and gain loyalty and drive secondary revenue through this. Dunn says many of them are tiny but will
know much more than larger organisations. She added: “With the supply chain they’ll know who returns what products and why they did so? They operate a learn-and-adjust model involving an ongoing test-and-learn strategy.” Despite the complexity of gaining data-
driven insights on customers, Finn says there is a definite opportunity for any business that can deal with this to convert some of its business online to generate secondary revenue. “The reality is that retailers probably know
when I’m going on holiday. If I’m in a store such as Boots in December and I buy sun cream then this would be an opportunity to sell me more products. I could be given a voucher for £10 off at the airport store and maybe given a travel exclusive offer,” she
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