Rewards and Loyalty: Analytics into Action
- by Career Moves PR, Marketing, & Digital
- 6 Feb 2019
Data can steer a loyalty program into profitable action. We know that a crucial mission of loyalty programs is to increase customer retention. To offer the best customer experience, embrace data in your retention strategy.
Higher customer retention offers a steady flow of reward. Building a strong relationship with customers, and developing their loyalty will cut down costs to consistently acquire new customers. This we know.
Now, if you uncover the trends in customer characteristics and their subsequent purchasing behaviour, you can assign a team to analyse the current data from your most valuable customers.
Measure success through examining customer lifetime value and whether the insights provided from collected data has influenced their loyalty rate.
Once you’ve created your target persona, and attributed their pain points and motivators through qualitative and quantitative research, you can compile your insights. Once collected, you can used analytics engines and algorithms to enable personalised and relevant customer interactions.
The influx of data will create a continuous cycle as the experiments made with the customer loyalty programme will then create new insights that feed back in the rewards issued. This ongoing process adds true value to the reward offered to loyal customers as the implicit wants and needs insinuated by their buying process are identified related into their rewards.
Call on Time
Understanding key moments in your customer’s decision making process will allow you to optimise the effect of your promotional ad.
Analyse spikes within your sales. Do they spike leading to a holiday, following the announcement of a sale, during the morning, day, or evening?
When this is understood future promotions can be aligned with these moments to continue to increase sales and remind customers who have previously purchased during that time slot that the same situation is arising.
This data can then be combined with the best product promotions, a match in sales and favourite products will incentivize a customer response to grow business.
Promotions and offers can then be varied across channels through offering personalised discounts for selected customers. Instore, online, and mobile can present a variety of promotions to create opportunities and a range of interaction tailored to each type of customer. i.e. instore buyers could be influenced more by a smelly product such as a spiced latte or bath bombs.
Develop customer personas through analysing consumer data such as lifestyle, demographic, purchased products, buying frequency, and the overall value of their purchase.
Combining these areas of data reduces the pursuit of an assumed resolution to create more sales. These multiple data points can create intelligent recommendations based on the customer’s characteristics and built behind their previous purchases to influence their future buying.
This collection of data over a period of time integrates real-time purchase data with historical purchases to make smart suggestions, investment in knowing your customer and their spending habits, can help generate loyalty between company and consumer to create a series of ongoing purchases.
A personalised reward recognises the relationship between yourself and your customer. You want to value your loyal customers and commend their commitment to your brand, compelling customers with incentives and rewards in a two-way relationship.
Offering the rewards that your customers want means that you have to communicate with them. Send a simple email survey and ask what types of incentives they love receiving. Or monitor social media to see which items are being raved about and identify an opportunity for increase sales.
The end goal is a beautiful relationship to drive loyalty, so communicating, personalising, and making the customer feel valued by the company will reciprocate in their valuing or the brand. Bridge that gap and build a trusted relationship.