Today Customer loyalty programs’ value is appreciated by most companies. However, in the modern market, having a simple program that only rewards purchases is not enough. Instead, Companies should personalize loyalty programs to fit better consumer needs and wants if they plan to make them effective.
Personalized communications with retailers are enjoyable for over 50% of U.S. consumers. Now we are familiar with the benefits of personalization, here are some suggestions for your customer loyalty program. According to a survey, 93 percent of companies that possess an advanced personalization strategy experienced income growth in 2018. Also, 77 percent of businesses that surpassed their revenue goals provided a personalized plan for their customers. The improved customer experience eventually summarizes into a boost in business revenues.
Providing a user-friendly dashboard with a unified user experience (UX) and user interface (UI) for your customers, allowing them to see their past purchases, loyalty points, and rewards, is easier than it sounds with the right platform. An effective dashboard must consider adding relevant advertisements based on past customer purchases. For instance, if a customer bought a leather bag previously, a similar product that they may like should be suggested.
Emails are still one of the most used forms of communication.
The latest reported number in 2021 transcends 4.1 billion, and For the next three years, it is predicted that it will grow 3% or approximately 100 million more each year which. In 2024, email users worldwide are projected to rise to 4.5 billion users. According to recent studies, emails with personalized subject lines are 26% more likely to be opened than those without. Rich Relevance found that revenue is 5.7 times higher in emails that employ personalization. However, an average person has to deal with a dozen emails every day, many of which are promotional. Therefore, if you plan to make your company stand out, you have to personalize your loyalty emails.
Consequently, personalized emails are more relevant to recipients, and the most fundamental aspect of email personalization is the address. An email with the address of “Dear Mr. Jones” is much more likely to get a reply than an email addressed “dear loyalty member.”
Customers feel incredibly better when they feel they are communicating with a person rather than a robot email server. For instance, including a signature gives a nice touch.
By starting a loyalty program, you will gather a significant amount of valuable data about your customers that can help you send specified messages to a group of relevant demographics. For instance, your customer base includes athlete teenagers; you can send a special promotional offer in gym registration or running shoes. This will allow you to target your customer’s demographic with a personally relevant message.
According to WNA DecisionPoint, a business-process-management company, customers typically fall into six archetypes based on their demographics, features, and characteristics:
1. In-store point miners.
2. Redemption-centric cart customers.
3. Experience seekers.
4. “Channel agnostic” point seekers.
5. Consummate demanders.
6. Casual subscribers.
Each group had different and unique expectations of rewards and tailored offerings.
Build Engagement via Data-Driven Personalization
through communications with customers and tailored reward redemption possibilities.
The basis of a dynamic relationship is based on the personalization of communication of a brand that knows about its consumer. Loyalty data is one of these data that can act as the cornerstone of the associations.
Brands known for this include Adidas, which categorizes its emails based on demographic factors, namely customer’s age or Asics, which sends personalized email follow-ups to customers.
Customers are significantly more surprised and delighted when they face personalized rewards that brands offer them using the gathered data. For example, Southeastern Grocers Inc., the parent company to Winn-Dixie supermarkets, recently introduced a successful challenge in which customers acquire a reward booster that is utterly personalized for themselves.
A useful way to utilize insights to provide customers with customer data of their purchases is personalized offers tied to point redemption opportunities, for example — to tailor the redemption opportunity to make it most relevant for that consumer.
A recent Mastercard rewards study found that when cardholders receive personalized offers, they see about an 18% spend increase from customers who redeem and a 75% reduction in churn. “to build deeper connections and long-term loyalty, companies must use data-driven insights to tailor experiences.,” said Jamie Samaha, vice president of loyalty and engagement at Mastercard.