Tapping into loyalty data for smarter acquisitions
While implementing a loyalty program, retailers put the majority of their emphasis on cultivating current customer loyalty. However, expanding one’s customer base should not be overlooked. Fortunately, the digital age is all about data and marketers can inundate themselves with it. The challenge lies in using valuable data correctly and ultimately meet one’s business objectives.
According to a recent survey commissioned by Acquia, about 75% of the US consumers agree that they will be more loyal to a brand that understands them at a personal level. (Source) Around 63% of consumers expect personalization as a standard of service and want to be recognized as an individual when sent special rewards or offers, as per a prime finding of RedPoint Global survey. (Source) A similar global study report released by Monetate for 2019 says that 93% of businesses increased their revenue last year using advanced personalization strategies and 74% companies that exceeded their revenue goals said that they have a dedicated budget for it. (Source)
These research studies give a direct correlation between business’ ROI goals and willingness to invest in personalization and embedded data technologies. Brands that focus on prioritizing customers by accessing the right loyalty data and use it as a marketing tool to make personalized offers experience long-term success.
Companies need to recognize the benefit of collecting the right data using their CRM loyalty system and analyze it from the immediate point a customer joins. Using an integrated system, travel brands can analyze the booking behavior and preferences of loyal customers which allows them to forecast their needs and avoid drop-offs. Some concrete ways to make the data actionable and power your loyalty program include –
- Unlock loyalty by integrating data and pave the way toward people-based marketing. Combining data with CRM and integrating into a reward program helps in improving customer journey while co-creating customer advocacy.
- A strong loyalty program will be able to leverage data and design a solid framework to engage, reward, influence and inspire their members. The data will help segregate members on the basis of their buying behavior and rewards can be tailored as per individual loyalty tier. In addition, direct marketing can be used to offer real-time loyalty program status and balance, which is virtually impossible without integrated systems.
- Smarter marketing will differentiate your loyalty program from that of competitors. Make personalized offers and rewards that also resonate with your brand values. The demographic information of the members can be utilized to understand the customer base and precisely target brand-centered offers. To maintain customer engagement and increase acquisition, make sure that rewards are easy to earn for new members. After initial rewards, willingness to earn more rewards/tiers will keep them motivated.
- Word of mouth referrals is one of the most powerful marketing strategies. Customers are even willing to pay more for better experiences. In the US alone, over 55% of consumers recommend their favorite brand to their family and friends. (Source) Retailers can tap into returning customers by optimizing their rewards and offerings using personal data.
- Data helps in recognizing weak points in your marketing program and differentiating what works well and what needs further improvement. Make sure to cover four key areas – customer convenience, offers/rewards/services, customer support, and personalization. Ensuring a seamless offline and online – website or app experience give your members a ‘head start’ for increased engagement. In fact, more than 60% of consumers are more likely to join a loyalty program that is tech-savvy with enhanced customer convenience. (Source)
- Another advantage of using data with integrated systems is to centrally manage all your applications from a single dashboard. With an integrated system, it is easier to assist customers during checkout and improve their shopping experience.