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BizReport : Loyalty Marketing : September 30, 2016

Top 3 tips to better source loyalty data

Data-driven loyalty can serve as the key to bettering the relationship between brand and consumer by offering an avenue for more personalized loyalty - adding value and driving further engagement through relevant loyalty offerings. Here are our top 3 tips to better source loyalty data.

by Kristina Knight

Kristina: How can brands/merchants better use this kind of data within their loyalty program?

Danielle Brown, VP of Marketing, Points: Many brands and merchants make the mistake of implementing a loyalty program, but fail to set clear objectives and goals which will help to determine the success of their programs. But measuring loyalty goes beyond measuring the strength of the brand-to-consumer relationship. It's about driving engagement, which ultimately helps drives profit. In order to define their variables of success, as well as gauge program efficiency, consumer data must be based on a number of measures.

Kristina: Can you give an example of this?

Danielle: For example, to measure efficacy, brands and merchants can look at their program engagement and define what engagement means. Looking to gauge the number of times a customer interacts with your brand? Measure social or transactional engagement. Want your consumers to spend more? Measure the average basket or transaction size. Want to influence consumer or shopping behavior? Then measure when and what products your consumers are interacting with and the breadth of their engagement. Ultimately, a valuable loyalty program should be tied to driving revenue and achieving profitability targets. By collecting data that sheds light on what products and interactions are driving loyalty, brands and merchants can yield actionable insights to better their programs and increase the engagement and value among consumers.

Kristina: What are your top 3 tips for using loyalty program data to drive revenue?

Danielle: Give the right offer to the right member. Construct your offers in a way that's relevant to your members by segmenting them based on past behaviours. By giving the right bonus to the right member, you'll notice a drastic increase in transactions and engagement.

Leverage your data to create relevant and unique programs that promote true brand affinity. Use analytics to drive your marketing strategies that create a measurable business impact.

Learn how to communicate better. Use your analytics to test and learn what language encourages a behavior. For example, does a "60% miles bonus" message resonate with your members, or will a "55,000 miles bonus" message fare better? Be strategic about your email communications, and only send offers to members that are actually going to interact.

Tags: advertising data, loyalty data, loyalty marketing, loyalty marketing trends, Points

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