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BizReport : Loyalty Marketing : September 28, 2016

How loyalty data can improve the shopper experience

Data is key to many things in the retail space. By offering a personalized experience, shoppers will be more likely to continue to engage with brands and merchants who treat them as a valued and individual member of their program.

by Kristina Knight

Kristina: What kinds of data can be sourced from merchant loyalty programs?

Danielle Brown, VP of Marketing, Points: From surface level insight, like the number of consumers enrolled in a program or average transaction count, to more in-depth insights, like average basket size or redemption patterns, merchants can collect an array of consumer data based on engagement within their loyalty programs. Some additional key metrics of loyalty program engagement include activation numbers, frequency of engagement, transaction trends, redemption rate and even inactivity rate. These types of data-driven insights can help merchants see how much their consumers are typically spending and earning within their loyalty program, the volume and rate of program engagement, who their most valuable customers area, and segment members into targeted groups.

Kristina: How important is this data to the brand/customer relationship?

Danielle: Loyalty is no longer one size fits all. Today's consumers have come to expect targeted and personalized loyalty offerings-- and this expectation will only increase as programs continue to collect more data and information from their members. It's important for brands and merchants to leverage consumer data to customize and target their outreach to drive desired behaviors by that consumer. If you're not leveraging data, it's a lost opportunity.

Kristina: What about outside the loyalty program - are there uses for this type of data there?

Danielle: Loyalty programs offer rich and wide data that can be leveraged beyond the program. It can help merchants to know their demographics and pinpoint who their most valuable customers are. The data can be leveraged to drive the media strategy to know who to target and how to reach them. For example, if a merchant's most valuable customers are business people in the 50+ age group, work with the Wall Street Journal to reach them. If it's a millennial audience, digital and social advertisements will guide the communications strategy.

Tags: customer data, loyalty data, loyalty marketing, Points

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