Internal Secondary Research

Question 1

Explain internal secondary research

Answer 1

It uses customer data and financial records already collected by the business

Question 2

Internal secondary research includes use of…

Answer 2

Customer data and financial records
Sales records
Loyalty cards

Question 3

Customer data & financial records

Answer 3

Many businesses have databases containing large amounts of information about their customers, such as:
- their address
- phone number
- the number of times they have bought products or services from the business.
Businesses will use this information to match products and services to customers’ algorithm and provide their needs and wants to help them boost sales.
Businesses can use names and addresses to send out offers by post or by email.

Question 4

Sales records

Answer 4

Detailed records of sales transactions can be used as a valuable source of secondary data. For example, a business can track its sales by:
- location
- time of day or month
- quantity bought at one time and how many times the same customer has bought from them.
Using sales figures, a business can work out the busiest times of the day or month, the busiest stores and the best locations to place products. Historical sales data can also help businesses to identity market trends so they can forecast sales.

Question 5

Loyalty Cards

Answer 5

Store loyalty schemes reward loyal customers with points when they buy in-store. These can be used as a discount when they purchase again. A loyalty card is used by a business to track and record an individual customer’s buying habits and then to tailor the reward to the customer.

Businesses can collect detailed data on buying habits and reward customers with personalised offers and target promotions more effectively.

Examples: Tesco Clubcard, Boots Advantage, Nectar