Data-Driven Loyalty Program – Future of 2021
Data-Driven Loyalty Program – Future of 2021
60% of businesses encountered improved customer experience across various devices and touchpoints using customer analytics, and 44% of enterprises are acquiring more customers using data in loyalty programs.
Technology has evolved over the years so the customer behavior. A lot can be done with data-driven programs in terms of offering delightful experiences to customers.
This approach has opened new pathways for businesses which allows them to offer personalized experiences studying their customers. Data-driven programs increase cash flow, retail customers and contribute to the company’s growth. Hence, data-driven programs are going to revolutionize the industry in a unique way, offering a lot more opportunities to businesses to build brand loyalty with better experiences.
Discover more about using data for loyalty programs further in the blog.
What is big data?
Big data refers to sharp insights on any topic – a data collection from various sources such as social media, videos, etc. By comparing the data, marketers can make better predictions in the future. They will be able to understand customer’s expectations related to the next purchase, which will help to identify various selling touchpoints, hence contributing to a better loyalty program.
Let’s discuss the benefits of a data-driven loyalty program;
Increase in Customer Retention
61% of retailers feel that customer retention is their biggest obstacle. Why? Because there is too much competition out there. Then why not create a loyalty program to increase customer retention? A data-driven program.
Data-driven loyalty programs will have a bigger impact on customers than traditional loyalty programs. Businesses get to know their customers using customer analytics and get information about various activities. It helps marketers make better predictions about customers while planning a loyalty program. Whether it’s a reward program or product recommendations, everything becomes personalized in a data-driven loyalty program. You can count on it.
Personalized Product Recommendations
According to research, customers who are actively engaged with brands and their loyalty programs make 90% more frequent purchases and spend 60% more on each transaction.
With real-time tracking, you can offer better product recommendations to your customers by analyzing their activities on various platforms. You know about the past purchases and present purchases of your customers. It helps you offer relevant products that your customers would be interested to buy. For example, if a customer is searching for a sportbike or a beauty product you can offer them products like bike accessories or cosmetics for the next purchase. It is a good opportunity to boost sales and enhance CX.
It’s not easy to earn customer loyalty when your customers receive tons of promotional ads every day from your competitors. Standing out in the crowd is a must. What they are expecting is a customized experience, whether it is a loyalty program or rewards. They want you to know them and offer products that fit their buying habits and lifestyle. It is possible with data.
During data monitoring, you will get to know the intricate details about your customers such as when they are using promotions; morning or evening, or when they respond. In this way, you can send the right message at the right time. Timely promotions can boost sales, and allow you to build brand loyalty gradually with effective customer growth.
Enhanced Customer Experience
Customer experience is the key to building brand loyalty. With data integration, businesses have more opportunities to offer unique experiences to their customers. Customer analytics allows businesses to study their customers’ behaviors and create better rewards and strategies that engage customers. Better experience, better retention rate.
Giving rewards is all about showing appreciation to your customers. Once you know what your loyal customers are like, you can create better rewards for them. These perks will be based on monetary transactions, shopping frequency, or survey responses. All this information will help you offer better rewards to your customers, and you can manage your loyalty member’ expectations without hassle.
For example, after analyzing the data, you can send an email to your customers to know what kind of incentives they would be interested in receiving from your brand. Include these incentives in your loyalty program as rewards. Your customers will be delighted and will engage more with the loyalty program.
Al-based customer loyalty program
Whenever a customer views or buys an item, they leave a review which is recorded by deep learning algorithms. This information is segregated into age, location, customer sentiment through selective word choices, etc. Marketers can make better decisions when they have all the data about customers. It allows brands to personalize every interaction and offer unique experiences. Instead of following a one-size-fits-all model, brands now have a chance to tailor it according to the type of customers. Thanks to the AI in the loyalty program. You know your customer better and live up to their expectations.
To Wrap Up
Data collection is rampant these days, Customers are sharing more than their numbers and names. This gives businesses a chance to understand customer’s emotions and analyze their behavior to offer better experiences.
AI in loyalty programs is an opportunity for businesses to achieve customer retention with the help of data.
If you are looking for a customer loyalty platform for your business, why not start with Froogal Ascend.
The Froogal Ascend
Froogal Ascend platform helps you to Understand, Retain and Engage your customers to maximize Business Revenue with greater Customer Lifetime Value. Offering features like CRM & Loyalty Management, experience management, customer analytics, marketing automation, etc. A one-step solution to build customer loyalty.
Reach out to our Loyalty Experts to get a free consultation today!