To have a successful loyalty program, it is no longer enough to just offer one. Brands need the insights that deep data analytics can provide in order to make their loyalty programs truly great. Statista reports that in 2022, American consumers, on average, belonged to 16.6 loyalty programs, with fewer than half of them being actively used. With more companies introducing loyalty programs and participation rates rising, this statistic becomes critical importance. Customers choose the brand that rewards their loyalty and meets their needs by providing a smooth experience when they have a choice among several options.
Marketers must comprehend customers in order to give them precisely what they desire, and this can only be done with deep data analytics. Businesses that use data-driven marketing are more likely to outperform the competition and boost profits. According to Forbes, the likelihood of businesses becoming profitable year-over-year is actually six times higher if they use data-driven marketing strategies. Companies that offer a loyalty program have access to a wealth of customer data.
A loyalty program is made effective by deep data analytics
Retaining consumers is the main objective of every loyalty program. In order to increase customer retention, it improves the customer experience through offers, prizes, and experiences. The risk of customers leaving your loyalty program, however, is always significant without deep data analytics. According to one study, 80% of customers reported switching brands as a result of a bad customer experience. In order to provide the anticipated customer experience, marketers go above and beyond, yet without deep data analytics, they are blind to important information. Because of the advantages they enjoy, customers adore participating in data-driven loyalty programs.
The benefits of deep data analytics
- Be certain of how data is being used
- Get tailored offers
- Receive rewards for their loyalty
- Intrigued and satisfied customers
- Increased customer lifetime value
- Obtaining accurate customer data
These advantages show that a data-driven loyalty program benefits both brands and customers, as is clear from the benefits listed. Deep data analytics not only reveals members who are dissatisfied and least involved with your brand, but also delights devoted customers. This enables marketers to develop targeted offers and campaigns in advance to win back those customers.
Let’s take Target’s data-driven loyalty program, Target Circle, as a great example, which was introduced to stores in 2019. With 100 million members, Target Circle offers a rich array of benefits, including non-RedCard (Target’s credit card) loyalty members receiving 1% back for those Friday night runs after work and a birthday discount for that special day. Also, the app compiles tailored offers based on prior purchases.
Why would your brand benefit from deep data analytics?
A complete understanding of customers
In this day and age, knowing only a customer's email address and demographics will do little for your marketing. With a decline in quality and authenticity, the usefulness of third-party data is diminishing. In addition, roughly 42% of respondents said that bad data wastes resources and raises prices, while 39% claimed that it has a negative impact on the customer experience.
Ronald Dod, a community member of Business, a digital media company, has expressed that “in the digital age of marketing, data has become the guiding light for all campaigns,” and he argues that “A data-driven approach is a necessity in today’s marketing ecosystem.” He continues, “Therefore, considering the input of various other campaign players and objectively analyzing campaign data should come before an individual’s pride or insistence.”
Deep data analytics helps businesses better understand their customers by gathering information on their past purchases, shopping preferences, search terms, and other factors.
Insights on modernizing loyalty programs
Customer behavior is continually evolving in this constantly changing digital environment. A successful campaign from a few years ago can now yield subpar outcomes. Making your loyalty program flexible and adaptable is the only way to deal with shifting customer behavior.
The output of deep data analytics is reports on the success of various loyalty campaigns. Without compromising accuracy, these insights can increase the efficacy of marketing strategies. Brands must respond quickly to shifting market conditions to avoid falling behind customer expectations.
Predictive analytics benefits from deep data analytics
You must plan for the future, take action in the present, and reflect on the past in order to differentiate your loyalty program. Marketers have access to predicted customer behavior thanks to deep data analytics. Predictive analytics may assist in improving the overall layout of loyalty programs and assisting businesses in determining how much their customers are spending and how significant they are to the business. As a result, businesses have the chance to learn about customer loyalty, which enables them to improve their loyalty programs and increase consumer loyalty. Thanks to predictive research, brands are better equipped to take advantage of topical possibilities such as increased holiday purchasing and timely compensation for dissatisfied customers.
Loyal-n-Save can help you build a thriving business! Whether you own a hair salon or an art supplies store, our loyalty club is here to help you retain customers while also obtaining new ones, making sure your business reaches its fullest potential. Ready to experience the potential your business holds? Give one of our specialists a call today, and they will set up a consultation and provide a demo for you. Tap into new opportunities for greater success today!
This article was written by Loyal-n-Save, an omni-channel customer loyalty solution for retailers looking to increase customer retention and new customer acquisition.