Below are eight tips that will help organizations focus on sparking lasting customer loyalty.
1. Build a solid data foundation and experimentation framework
Creating connected experiences requires a deep understanding of both customer needs and data. Organizations that get this right see positive results. While capturing and rewarding customer behavior in the moment is important, businesses also need to prove to their customers the value of long-term loyalty.
By establishing a strong data foundation, and then building an experimentation framework on top of it, retailers can actively test different hypotheses concurrently; this test-and-learn approach enables businesses to pivot rapidly. And speed to pivot means speed to revenue.
2. Use predictive behavior metrics to pivot and personalize
Our own research finds many consumers aren’t all that loyal to the loyalty programs they have joined:
-
93% of consumers have active loyalty program memberships, yet only 33% are happy with their current programs and 36% feel the value they receive doesn’t reflect the worth of their personal data.
-
Customers are typically enrolled in up to 14 different membership and loyalty programs with as many brands, but they’re actively leveraging only six. And within those six programs, purchasing behavior tends to be driven by price.
That behavior causes brand longevity to suffer, so retailers have to use predictive behavior metrics to connect with those loyal customers by catering to their specific, immediate needs through personalization.