GameStop's Business Strategy is Powered by Customer Data

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GameStop's Business Strategy is Powered by Customer Data

By Tim Denman - 10/14/2014
GameStop’s multichannel strategy is to maximize engagement, loyalty, and revenue, by offering customers choice and convenience. But without a 360 degree view of the customer such lofty goals are impossible.

Before launching its Power-Up Reward program in 2010 GameStop was channel focused, lacked customer data and analytics, had siloed data, and limited metrics upon which to measure its success across channels.

Today thanks to the vast amounts of information GameStop collects from the 36 million-plus members of its loyalty program the retailer now has cross-channel visibility, is able to discover patterns across channels, and can target and personalize its communication with customers.
 
At Engage! 2014, Bill Graham, director multichannel, shared how the implementation of a loyalty program grants the enterprise with valuable customer insights that are used throughout the company to create and guide its business strategy.

Among the interesting insights the video game retailer has gleamed from its loyal customers and Graham shared with the Engage! audience was the fact that just 3% of GameStop’s sales comes from online but 26% of online visitors make a purchase in-store within 48 hours. Although GameStop’s e-commerce channel doesn’t produce much revenue it is a major driver of in-store sales and as Graham said: "it’s not all about online conversion."

As a technology retailer whose primary business is selling video game consoles and software, GameStop’s core shopper base is Millennials — a customer segment that relies heavily on their smartphones and mobile apps to shop and interact with retailers. Over 40% of GameStop’s online traffic comes from mobile devices, a metric that is consistently on the rise.

The collection of valuable shopper data through its loyalty program helped GameStop develop a new mobile app that was released in July 2014. The application provides shoppers the features most important to them including easy access to product information, the ability to look up the value of their old games (product trade-in is a large part of the retailer’s business), and accurate tracking of pre-orders.

The mobile app has been a resounding success. Since its launch just four month ago the retailer has seen an 8% increase in new app installs, 27% increase in daily active users, and a 23% increase in direct sales. In fact ship to store orders are up 104%.

"We are only scratching the surface of what we are going to be able to do,” Graham says. “We will continue to find ways to bring GameStop’s unique value proposition to its customers across channels."

Engage! 2014 was held October 8-10, 2014 at the Ritz Carlton in Fort Lauderdale, Florida. The conference featured keynotes from retail thought leaders, peer-to-peer exchanges, a golf outing, and relationship building. For more information click here.