We are more dependent on technology than ever before. And this dependency has resulted in a vast amount of user behaviour data, which is transforming the industries around the world, including loyalty programs. User data helps companies leverage customer loyalty programs to forge personalized, dynamic relationships with their members. This is in stark contrast to how customer loyalty programs of the past could only promise a blanket set of incentives, or, at best, personalized offerings based upon a customer’s previous purchases.
However, customer loyalty analytics allows for far more than targeted marketing. It’s a window into how customers think and, perhaps most importantly, can help predict a member’s behaviour in the future. Through the use of an advanced loyalty program software, your company can discern critical information from a customer’s data trail.
Let’s look at how a loyalty program software draw insights from your customer behaviour and improve return on your loyalty program investment.
The more fine-tuned the customer loyalty program strategies are to its customers’ needs, the more likely they will engage with the company. According to research, the customers who are actively engaged with a brand’s loyalty program make purchases at almost 90% greater frequency and spend up to 60% more per transaction. With a loyalty program software, you can clearly define the data points of customer behaviour that helps you in creating targeted recommendations for them. This includes the products or services they purchase, the frequency of their purchase, purchase quantity, time and date of purchase, purchase channels, and more. Even though targeted recommendations can boost member engagement, it’s important to combine historical purchasing data with real-time purchasing information to create the clearest picture of what members need. For example, if a small business bought a CRM software from you, their team might be interested in purchasing your series of on-demand customer lifecycle management webinars.
Failure in targeting their needs can discourage even the most loyal customers.
We all know the happiness and thrill of receiving a personalized gift from our friends or family. The feeling is the same with customers when they receive a personalized gift from a brand. A customer loyalty program software can help companies anticipate the types of rewards that best incentivize members to continue engaging with the organization. This way, loyalty programs can ensure that members of all types and preferences are motivated to consume more, without losing customers who aren’t interested in certain types of rewards. Most importantly, personalized rewards demonstrate to your members how grateful your company is towards them and serve as reminders of how beneficial their relationship with your company has been.
The timing of your rewards can make or break your loyalty programs. By looking at the times during which members engage with their loyalty program, a loyalty program platform can identify the most appropriate time to reach out to its loyalty program members. In fact, many loyalty program companies in India companies use information obtained via loyalty programs to narrow down when customers will be most receptive to new offers.
Predicting customer value
Customer loyalty analytics can not only help companies improve their alignment with customer needs, but also identify the customers that are the most valuable to engage with. With the right customer loyalty program software, your company can identify and focus on members with the highest customer lifetime value, who will eventually generate the highest amount of revenue for your business. Thus, you can change the strategic focus of your marketing efforts to engage primarily with those most likely to take advantage of your promotions.
Data and analytics generated through a customer loyalty program software has the potential to increase your company’s loyalty program ROI by helping you make sense of volumes of customer data, all while giving your company insight into new ways of engaging with program members.
We are building loyalty ecosystem
A business with a 60% customer retention rate is losing 3-4 times as many customers a business with 80% retention rates. Besides, increasing customer retention by just 5% boosts profits by 25 to 95%, according to the advisory firm Bain & Co.