Chapter 2: Build a data strategy for retail loyalty programs
Unify data in real-time to operationalise loyalty
We know that more consistent, personalised journeys create happier, more loyal customers. People have come to expect tailored, personally relevant experiences, customised offers and enhanced service capabilities. A customer data platform (CDP) can help deliver on these expectations.
“Everything we know about a guest is unified in CDP, and now we’re enriching that by calculating attributes,” said Casey’s Sebastian. For example, if Casey’s marketing team sees groups of customers who shop in the morning, they tag them as “breakfast shoppers,” enabling them to create a value proposition on the fly for coffee and breakfast sandwiches.
A CDP connects the entirety of a company's customer data in one place, providing a unified vision. It reaches across an organisation and ties together databases that don’t traditionally share data (marketing clouds, service software, ecommerce engines, and more). It also reconciles data for known customers (such as email and phone numbers) with data like anonymous cookies and mobile device IDs to paint a complete picture of the customer journey. And, it does this in real-time.
Create in-the-moment experiences
Building unified customer identity profiles and then making that data available in real-time allows every department to act based on in-the-moment customer behavior. It means that things like loyalty points update immediately, and frontline staff know at the point of sale when a purchase initiates a jump in tiers or loyalty status. This allows for a much richer, more intimate experience.
These tools also streamline behind-the-scenes activities. For example, systems like email-send engines, demand-side platforms, and content management systems can utilise real-time data to refine customer segmentation, execute better targeting and suppression efforts, and create personalised customer experiences within your loyalty department, and beyond.
Integrate loyalty and data strategies on a unified platform
Use first-party data to create specific, personalised experiences
Boost loyalty and trust through transparency
Drive long-term business value from loyal customers
When loyalty is done right, it not only solidifies customer relationships, it also improves the bottom line. This is especially important in today’s economic climate. A well-designed loyalty program can provide non-dividend-based, low-cost experiential rewards that improve customer satisfaction without actually costing the organisation. This can help alleviate margin pressures that might result from discounts and cashbacks.
Creating meaningful experiences that keep the customer coming back for more is incredibly valuable when you consider that it costs six to seven times more to acquire a new customer than to retain one you already have. In fact, just a 5% increase in customer retention produces a profit increase of anywhere from 25 to 95%. And how do you quantify the impact that happy customers’ word-of-mouth referrals have on your business?
Next: Chapter 3: Bring new experiences to market quickly
- Use automation to power flexibility
- Leverage customer insights
- Measure emotional loyalty and point-in-time satisfaction
- Forecast program viability