{"id":64292,"date":"2024-06-18T11:26:41","date_gmt":"2024-06-18T01:26:41","guid":{"rendered":"https:\/\/www.salesforce.com\/?p=64292"},"modified":"2024-06-18T11:33:03","modified_gmt":"2024-06-18T01:33:03","slug":"future-of-loyalty-marketing","status":"publish","type":"post","link":"https:\/\/www.salesforce.com\/au\/blog\/future-of-loyalty-marketing\/","title":{"rendered":"Hit Your Growth Goals with a Smarter Customer Loyalty Strategy"},"content":{"rendered":"\n

Loyalty can\u2019t be siloed into one stage of the customer journey. While traditional approaches to loyalty have focused on the last stage well after the initial transaction, loyalty is better thought of as a persuasive element that spans from acquisition to retention to engagement.  <\/p>\n\n\n\n

Done right, loyalty transcends retention \u2013 it\u2019s about creating experiences so compelling that leaving is the last thing on a customer\u2019s mind. Transitioning from traditional points and tier-based systems, modern loyalty programs have evolved into rich, experience-based strategies that prioritise personalised experiences over transactions. <\/p>\n\n\n\n

With 80% of customers believing “customer experiences should be better given all the data companies collect,” the pressure is on brands to deliver exceptional, personalised interactions across every touchpoint. Yet, as revealed in the Ninth Edition State of Marketing Report<\/a>, only 39% of marketers say their customers get full loyalty program functionality across touchpoints. <\/p>\n\n\n\n

All this means that loyalty is no longer just the remit of marketing. Ram Machiraju, Global VP of Loyalty at Salesforce, says, \u201cCustomer loyalty is often seen as a marketing initiative but should be an enterprise-wide strategy.\u201d An effective loyalty program is holistic and applied consistently across the customer lifecycle and departments.\u00a0<\/p>\n\n\n\n

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The State of Marketing Report<\/h2>\n\t\t\t\t\t\t\t

AI tops the list as the biggest priority and the biggest challenge for marketers. We break down what\u2019s on their AI agendas.<\/p>\n\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t

\n\t\t\t\t\tRead the report<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t
\n\t\t\t\t\t<\/div>\n\t<\/div>\n\n\t\n\t\t\t\n\t\t\"\"\n\n\t\t\n\t\t\t\t\t\"\"\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\t\t\t\"\"\n\t\t\n\t<\/div>\n\n\n\n

Advocates and Brand Ambassadors Drive Low Cost Acquisition<\/h2>\n\n\n\n

By adopting an enterprise-wide strategy for loyalty and using data to understand top customers, brands can drive growth across every stage of the customer funnel \u2014 from acquisition to engagement to retention. Data reveals that about 10% of future revenue could come from just the top 1% of customers. These high-value advocates are already used to target advertising and find lookalike audiences. Tapping into the social spheres of these top customers can amplify their advocacy, attracting new customers who are likely to be immediately loyal and enhancing the loyalty of existing ones.<\/p>\n\n\n\n

During a recent event, I was joined by a roomful of marketing professionals who are all facing the pressure to do more with less. As brands face tighter budgets with customer acquisition costs increasing by 60% over the last five years, the potential of referral marketing to acquire new customers at a fraction of the cost of other channels was a key talking point. <\/p>\n\n\n\n

Referral marketing is proven to be highly effective, offering twice the ROI compared to traditional paid media and achieving 37% higher retention rates. However, its success is contingent on using real-time customer data to personalise experiences across all touchpoints and having the technology<\/a> to do so.\u00a0<\/p>\n\n\n\n

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Trends in Generative AI for Marketing<\/h2>\n\t\t\t\t\t\t\t

Discover how marketers are building their skills and delivering results with Generative AI.<\/p>\n\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t

\n\t\t\t\t\tRead the report<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t
\n\t\t\t\t\t<\/div>\n\t<\/div>\n\n\t\t\t
<\/div>\n\t\n\t\t\t\n\t\t\"\"\n\n\t\t\n\t\t\t\t\t\"\"\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\t\t\t\"\"\n\t\t\n\t<\/div>\n\n\n\n

Transforming Customer Loyalty at Speed with Data and AI<\/h2>\n\n\n\n

What do customers really want? It varies, but one constant is the desire for personalised experiences, now achievable at scale through the strategic use of data and AI. Rather than a standardised points and rewards tier program, consider the customer loyalty a brand could build if the reward was more tailored to the individual and offered more value than a discount. Free shipping, early access to sales, preferential services, exclusive merchandise, extended warranties, and \u2018money-can\u2019t-buy\u2019 experiences are all potential loyalty levers that can be strategically pulled. <\/p>\n\n\n\n

Achieving this degree of personalisation requires a platform capable of harnessing and actioning unified customer data. AI-driven decision-making tools, such as those available in Einstein 1 Sales<\/a> and Loyalty Management<\/a>, automate and optimise the delivery of tailored experiences and rewards at scale. By analysing a customer\u2019s interaction history and projected future value, these tools can pinpoint the most effective offers, enhancing the customer’s journey and cementing their loyalty.<\/p>\n\n\n\n

Other Loyalty Management<\/a> AI features like scoring systems, predictive analytics, AI co-pilots, and automated content generation work together to empower teams to deliver personalised experiences efficiently. The right technology can satisfy both the customer\u2019s expectations for personalisation and the marketer\u2019s goal to build deep, lasting customer relationships. <\/p>\n\n\n\n

Recognising the need to keep up with changing customer expectations, IHG Hotels & Resorts<\/a> is standardising its CRM on the Einstein 1 Platform<\/a> and is adopting Loyalty Management to enhance its IHG One Reward program, emphasising personalised guest experiences that cater to individual travel needs. <\/p>\n\n\n\n

\u201cOur collaboration with Salesforce will enable us to further enhance the technology, tools, teams, and solutions that power our loyalty program, allowing us to provide personalised content and offerings that ultimately drive a deeper connection to our most valued guests,\u201d says Heather Balsley, Global Chief Commercial & Marketing Officer at IHG Hotels & Resorts.<\/p>\n\n\n\n

Keeping Pace with People and Strategy<\/h2>\n\n\n\n

It\u2019s not just your technology that needs to be ready for the changing nature of loyalty. It\u2019s also necessary to prepare internal teams to embrace a data-driven, customer-first approach that spans the entire customer lifecycle. This approach demands the engagement of every department, beginning with securing buy-in from the C-suite by demonstrating both the value of loyalty and the risks of inaction.<\/p>\n\n\n\n

Teams must be equipped with the right tools and capabilities to implement a customer-first strategy effectively. Building agile systems to support this shift \u2014 from vision to business case, through validation, prototyping, and implementation \u2014 is essential. These systems should include mechanisms for regular feedback to adapt and refine the strategy swiftly.<\/p>\n\n\n\n

With a strategic and well-supported approach, launching a new loyalty strategy can be achieved faster than traditional timelines suggest. Properly executed, it\u2019s possible to bring a loyalty launch or rebuild to market within just 6 to 9 months.<\/p>\n\n\n\n

Three key principles of a successful customer loyalty strategy<\/h2>\n\n\n\n

With the current squeeze on marketing teams, there are three core principles to follow as you get started on your new loyalty strategy:<\/p>\n\n\n\n

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  1. Simplify for efficiency \u2014 Integrate loyalty programs with existing technology, using AI and data to boost productivity, so your team can focus on strategy over managing tools.<\/li>\n<\/ol>\n\n\n\n
      \n
    1. Brand consistency \u2014 Unify all communication channels. A consistent customer interaction approach across all platforms reinforces trust and strengthens your brand identity.<\/li>\n<\/ol>\n\n\n\n
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      1. Fast time to value \u2014 Speed is crucial. Executive teams expect quick ROI, necessitating technologies that support rapid deployment and swift customer acquisition.<\/li>\n<\/ol>\n\n\n\n

        In today\u2019s market, where customer expectations are evolving and acquisition costs are climbing, implementing a dynamic loyalty strategy is vital. By prioritising meaningful interactions and embedding loyalty practices across the organisation, businesses can harness the power of their most effective marketing asset \u2013 satisfied customers \u2013 to drive sustained growth.<\/p>\n\n\n\n

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        Keep Shoppers Coming Back<\/h2>\n\t\t\t\t\t\t\t

        Rethink your loyalty program with a guide to creating personalised experiences that drive lower costs and higher retention.<\/p>\n\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t

        \n\t\t\t\t\tGet the guide<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t
        \n\t\t\t\t\t<\/div>\n\t<\/div>\n\n\t\n\t\t\t\n\t\t\"\"\n\n\t\t\n\t\t\t\t\t\"\"\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\t\t\t\"\"\n\t\t\n\t<\/div>\n","protected":false},"excerpt":{"rendered":"

        Brands using loyalty programs to drive growth effectively are doing so by embedding them across every part of the customer experience. There\u2019s a growing recognition that long-term customer engagement requires more than just rewards \u2014 it demands a strategic, holistic approach that permeates the entire organisation.<\/p>\n","protected":false},"author":28,"featured_media":64295,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"sf_justforyou_enable_alt":true,"optimizely_content_id":"b3b98295d500451da7263576bc6e98c0","post_meta_title":"","ai_synopsis":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"sf_topic":[2455,2456,2858],"sf_content_type":[],"coauthors":[3129],"class_list":["post-64292","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","sf_topic-marketing","sf_topic-marketing-cloud","sf_topic-artificial-intelligence"],"yoast_head":"\nHit Your Growth Goals with a Smarter Customer Loyalty Strategy | Salesforce<\/title>\n<meta name=\"description\" content=\"Learn how a customer loyalty program powered by AI can increase customer retention and acquisition and boost growth.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.salesforce.com\/au\/blog\/future-of-loyalty-marketing\/\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Hit Your Growth Goals with a Smarter Customer Loyalty Strategy\" \/>\n<meta property=\"og:description\" content=\"Brands using loyalty programs to drive growth effectively are doing so by embedding them across every part of the customer experience. There\u2019s a growing recognition that long-term customer engagement requires more than just rewards \u2014 it demands a strategic, holistic approach that permeates the entire organisation.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.salesforce.com\/au\/blog\/future-of-loyalty-marketing\/\" \/>\n<meta property=\"og:site_name\" content=\"Salesforce\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/salesforce\" \/>\n<meta property=\"article:published_time\" content=\"2024-06-18T01:26:41+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-06-18T01:33:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.salesforce.com\/au\/blog\/wp-content\/uploads\/sites\/4\/2024\/06\/AdobeStock_553712115.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"4743\" \/>\n\t<meta property=\"og:image:height\" content=\"3162\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" 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