Birdzi has created a shopper quality index called the KIC™ Score. This unique score, similar to a FICO Score, is a composite of complex shopper attributes designed to provide a methodology for automating marketing strategies for each customer and measuring the effectiveness of each campaign.
KIC™ Score versus traditional segmentation
Traditional segmentation buckets customers into groups based on their past purchases and demographic characteristics. Marketers then create offers and campaigns based on those shared attributes. Segmentation is about groups.
The KIC™ Score is not traditional segmentation. The KIC™ Score is about the individual shopper and the value to the retailer. With the insights provided by shoppers’ KIC™ scores, the expert system created by Birdzi automatically creates a strategy for individual shoppers designed to increase their value and quality. Additionally, the KIC™ Score can be used across the retail organization to evaluate all customer-facing activities, from marketing initiatives to operations to product assortment decisions.
How is the KIC™ Score calculated?
The KIC™ Score is a composite of hundreds of attributes and behaviors including spend, categories shopped, price point, and frequency. The resulting scores reflect the economic value of the shopper. The retailer can customize the scores by giving more weight to the attributes that are more important to them and their business.
And then what?
Once the KIC™ Score has been calculated, Birdzi’s AI and machine learning expert system determines the best way to grow the shopper based on their score and profile. Let’s say a retailer has created a segment of people who have not shopped in the last 14 days. While the customers in that segment share one commonality, they shouldn’t be treated the same.
Shopper A: This shopper’s KIC™ Score is 812 – relatively high. The strategy is to retain the shopper by providing savings on highly relevant products.
Shopper B: This shopper’s KIC™ Score is 685. The strategy is to improve the shopper’s quality by encouraging purchases from additional categories and growing basket size by providing offers on larger package sizes and related products.
Shopper C: This shopper’s KIC™ Score is 372, reflecting only occasional shopping activity from limited product categories. Leveraging insight into a preference for the in-store bakery department, the system provides savings on bakery items on different days to encourage more shopping frequency and strong savings on related products.
KIC™ Scores let you track customer growth over time
Many solutions allow retailers to take a static snapshot of their customers according to spend and frequency, but they don’t allow the retailer to track customer growth over time. KIC™ Scores allow retailers to see changes in individual customer behavior over time and helps calculate the remaining lifetime value of customers to the business.
KIC™ Scores inform more than just marketing decisions
The KIC™ Score is a powerful management tool, enabling activities across the retail organization to be evaluated by the impact on each shopper. For example, store director incentives can be tied to the number of shoppers with a KIC™ Score over 700 or improvement in the store’s shoppers’ KIC™ Scores. Changes to product assortment or pricing can be evaluated by the impact on shoppers’ KIC™ Scores. Birdzi’s KIC™ Score is a powerful tool to help guide the entire retail enterprise.
Our goal at Birdzi is to help retailers grow their businesses one customer at a time. We do that by putting the data to work in a way that allows the retailer to offer one-to-one personalization. The KIC™ Score allows retailers to go beyond segmentation to create unique strategies to grow the value of each customer. It also creates a standardized measurement to assess the overall health of the business.
If you would like to learn more about how the KIC™ Score can work for you contact us now!