To keep up with the wants and needs of customers then, the idea of loyalty must continue to evolve. Rather than points-centric reward models, companies need to leverage data and technology to improve communications in marketing, service, sales, and more. In short, loyalty programs must be replaced by loyalty management.
Loyalty management means evolving from providing an activity that motivates a purchase, to a comprehensive, immersive program that accompanies a shopper throughout the entire lifecycle. It means creating personalized, one-to-one customer journeys. The most effective loyalty programs of today are ones that focus on experience personalization and relevancy. These programs can be implemented across many channels and are easy to use.
So how do you achieve this level of loyalty management? It comes back to using data and technology efficiently. With more customers than ever online, and more channels to reach them, the information required to get to know your customers is readily available, but difficult to access when companies are forced to spread themselves so thin. That is where CRM (customer relationship management) comes in.