Innovation  |  Competition  |  Brand Power  |  Promoter Customers  |  Agile Business  |  Momentum  |  Aligned Team  |  Leadership  |  Customer Centricity
Article Loyalty Impact

Personalization - The Hidden Capability of Loyalty Programs

Loyalty and rewards programs have been around for a long time. At their core, they haven’t changed much — tracking customer spending and activity and rewarding them for doing more of both.

But the technology around them has changed exponentially and, with it, the secondary benefits to companies have overtaken the primary impact of loyalty programs. There has been a declining impact of rewards on buyer behavior --largely due to low barriers to entry allowing competitors to offer the same or similar programs.

The data gathering power of loyalty programs is now their primary value to the companies that offer them. Customers voluntarily offer every purchase to be tracked — often across multiple vendors sharing the same reward program.

The result: a complete picture of customer purchasing behavior coupled with deep profile information about demographics and preferences (reward preferences reveal what buyers value most).

What does this all add up to brands?

The main thing is a deep ability to better target customers with greater personalization. Whether is a service or product across industries, marketing is always more effective when it reflects the realities of each customer more closely. To put it simply, there’s no point send a vegetarian ads for discounts on meat OR a man offers for products meant for women.

Simple examples but the illustrate the fundamental marketing problem that loyalty programs solve — targeting. With the combination of new marketing technology and the rich data from loyalty programs, personalization is now possible.

Higher ROI on effort (which costs money)

Companies spend large amounts of money on creating, designing and delivering marketing campaigns. But many are less than effective and the biggest reason is the use of a ‘one-size-fits-all’ approach to messaging.

So money gets wasted on campaigns that are half baked — well designed and delivered but poorly targeted. The answer to that weakness lies in the rich data of the loyalty programs of those same companies. By leveraging all the data about buyer behavior, demographics and preferences,

The end result is better monetization of existing customers — putting brands on the right side of that old adage: “it costs 10x more to acquire a new customer than keep or grow an old one.”

Jul 10, 2015  
15 shares
LATEST ARTICLES exclusive

Are You Using These 5 Approaches to Greater Business Agility?

3 Ways to Innovate the Customer Support Side of Your Business

Going From Good to Great on Customer Centricity: 4 Ways Companies are Creating Real Advantage

Using Customer Centric Strategies to Build Business Momentum


MORE ARTICLES

EXPLORE MORE
Article CX Strategy

It's impossible for companies to focus on the 'easy' market segments (ie. non millenials) and get comfortable with a less than competitive product or service offering. 

theEdit NEWSLETTER latest issues
LATEST ARTICLES strategy, insights, examples
Article CX on Social

The price is very high for falling behind when there’s an evolution going on — it can be extraordinarily bad for your brand.

Connect to Customer Excellence Magazine
 
Different social platforms ...
varied experiences.

Get a wide perspective on
Loyalty | CX | Rewards | Mobile | Gamification | Omnichannel | VOC
LATEST OPINIONS from our editors

Achieving customer satisfaction has never been more complicated -- with so many generations of customers (Boomers and Gen X, Y and Z).  Throw in a multitude of communications platforms and the problem gets even more complex.

  © 2010-2017 Ideal Path. All rights reserved.