Data mining for small shops: Empowering brick-and-mortar stores through BI functionalities of a loyalty program¹

ABSTRACT

While the analysis and usage of data are increasing in importance, the application of sophisticated BI solutions in small stores is limited by available technical capabilities and financial resources. This study investigates how brick-and-mortar stores can benefit from an expansion of service functionalities of a cross-industry loyalty card provider. Digitalizing the loyalty program created new opportunities, while the analysis of shopping data of 13 years, 19,000 customers, and 55 shops empowered data-based decision support.

KEYWORDS:

• Customer loyalty
• case study
• brick-and-mortar stores
• business intelligence
• loyalty programs

Additional information

Notes on contributors

Michael Reiner Kamm

Michael Reiner Kamm ([email protected]) is a PhD candidate and research assistant at the Hilti Chair of Business Process Management at the University of Liechtenstein. He received his BSc in Mechanical Engineering from the University of Applied Science Esslingen and his MSc in Information Systems from the University of Liechtenstein. In his dissertation he examines how new Internet of Things (IoT) technologies contribute to the development of innovative data-driven processes. Therefore, he is involved in various digitalization, smart factory, and smart city research projects.

Jan-Peter Kucklick

Jan-Peter Kucklick ([email protected]) holds a BSc in Business Administration with specialization in Information Management and IT and a MSc in Information Systems with specialization in Data Science from the University of Liechtenstein. He is a research assistant at Paderborn University and currently pursuing a doctoral degree. His research interests include the value generation of business intelligence, different applications of data mining, artificial intelligence, and computer vision for product evaluation.

Johannes Schneider

Johannes Schneider ([email protected]) obtained his PhD at ETH Zurich in Computer Science. He worked at research labs at IBM and ABB. Now, he holds a tenure-track position as Assistant Professor in Data Science at the Institute of Information Systems at the University of Liechtenstein.

Jan vom Brocke

Jan vom Brocke ([email protected]) is Professor of Information Systems, the Hilti Chair of Business Process Management and Director of the Institute of Information Systems at the University of Liechtenstein. His research focuses on business process management and related aspects of digital innovation and transformation. He has published, among others, in Management Science, MIS Quarterly, Journal of Management Information Systems, Journal of Information Technology, European Journal of Information Systems, Information Systems Journal, Communications of the ACM, and MIT Sloan Management Review. He has held various editorial roles and leadership positions in Information Systems research and education.