Loyalty programs are not risk-free endeavors. In today’s organizations, the CMO and CFO demand to know the ROI of all initiatives, especially for a large undertaking like a loyalty program. This, in turn, necessitates the need for a complete financial analysis to understand the income statement, balance sheet, and cash flow implications of your loyalty initiative. In this paper, we will share some of our best practices and structural elements of how our loyalty strategy team models programs.
Your customers know what they want—do you? It’s no secret that customers now expect to feel like your brand personally knows them. According to a recent study by Gartner, 89 percent of CMOs expect their brand’s customer experience to differentiate them from their competition. Using real-time data and customer understanding through your loyalty program, you’re able to deliver an experience tailored to each member.
To best understand your loyalty program members, keep the program relevant to them, and ensure you maximize the profitability of each interaction, it is essential to track and understand their behaviors. Loyalty programs tie together all of a member’s transactions and include information from their social networks, reviews, preferences, employee interactions, and other program engagement activities.
Large numbers of customer identities are currently unknown and brands struggle with linking together customer purchases, LTVs, and preference trends. Driving self-identification of customers across channels with your loyalty program increases matchback rates and your understanding of customer spend and behavior.
Many customers are treated as if they’re one and the same although there is so much customer information available to us. The information provided from a loyalty program can help ensure that messaging increases in relevance, maintains margin, and builds a more personal and meaningful relationship with each member.
Programmatic buying without leveraging loyalty-related 1st party data misses an opportunity in acquiring higher LTV customers. Loyalty programs can provide a more in-depth understanding of your customers with data sourced from loyalty profiles, social accounts, and content creation.
Is it better to have one loyalty program that covers all of your brands, or separate programs for each? How you answer that question can have huge implications for your customers’ experience and your loyalty ROI. In this paper, we offer guidance for senior marketers who are looking to determine the best approach.
Marketers who have already invested in loyalty need to set program objectives that drive equality enrollment and create more opportunities for engagement. See how 500friends helps modernize existing loyalty programs to generate real & measurable results.