4 Ways you can use your loyalty data to gain a competitive advantage
- 3 min reading
Generating and analyzing customer insights can help you keep customers coming back, lead them into spending more time at your brick-and-mortar stores (or your website), and convince them to reach for products with high-profit margins. So, what is it you have to do with the data you already have to gain all of the above? Here are 4 things you should focus on right away.
First, use personalization
Marketing personalization is not but some kind of bells-and-whistles feature. By today’s standards, it is a must-have customer engagement technique. Why? Because personalized (or even hyper-personalized) content is the key to success – it helps create emotional bonds, increase interest in the brand, as well as reduce marketing costs thanks to proper targeting. Using loyalty program data allows you to utilize advanced segmentation methods to communicate with the right audience at the right time and place.
Second, determine buying patterns
What it means is that you must determine a way in which customers will purchase your products or services, paying attention to elements such as purchase-order sequences – we’re talking quantities and frequencies. Using a loyalty management platform to identify these patterns allows you to understand your customers’ behavior better and create offers that really hit the spot. The result? Higher revenue!
Third, use a collaborative filtering technique
With the right tools, you can set products and services that a given program member might like apart from the rest, based on actions and reactions of similar customers. In e-commerce, this technique is often part of product recommendation algorithms, as it may affect both cross-sell and up-sell in a way.
And fourth, become a marketing broker
Statistical data about customers’ behavior is as valuable to the program operator as it is to program partners and market research agencies. Thus, it is possible to get an additional revenue stream by sending offers from your program partner to a specified member segment - or conducting a survey for an external agency.
Knowing the above, it should not be a surprise to anyone that data collected by loyalty programs is considered one of the most valuable resources. If you are smart about using it, it will help you gain a competitive advantage, for sure.
You may also like:
Why should your company start a Loyalty Program?