The value of customer loyalty and how to increase it
April 27, 2020
If you are looking to increase customer loyalty then leveraging digital data will enable you to deliver a more in-depth personalised experience for your customers.
The big issue with benefiting from the increased value of loyal customers is that, in today’s digital society, consumers are overwhelmed with options meaning that you have to do something different in order to win them over in such a competitive market.
One frustration is an inconsistent experience, with 7 in every 10 connected consumers feeling negatively toward brands that fail to deliver consistent user experiences, and 10% say these inconsistencies will make them stop interacting with a brand altogether.
How to increase customer loyalty
Although 57% of consumers are happy to share their personal data with trusted brands, 50% stated that they did not feel like they were benefiting from sharing this and expressed frustration in the lack of personalisation. With 89% saying that they would be more loyal to retailers offering benefits that they want the most, a clear way to boost loyalty is to use this additional insight wisely rather than continue to lose custom with the same generic marketing efforts.
By connecting to your consumers’ digital footprints (and with the right big data analytics tools) you can gain real-time actionable insights into aspects of their behaviour, personality and lifestyle that indicate their wants and needs so that you can customise communications and offers accordingly.
An individual’s online footprint holds a wealth of data which can be analysed to reveal key interests and hobbies, life events such as graduations or anniversaries, socio-demographic information like what family members they have and their age, recent and frequent locations, and even personality type. All of these can be utilised in the personalisation process, for example, rewards timed to key life events and occasions, offers on products they’re more likely to be interested in, or even communications tailored to their personality. A study by Disney Research found that personality type can be used to predict the type of images that people prefer, meaning that marketers can use insights into consumer personality to tailor their visual advertisements to be optimised for maximum engagement.
The magic of loyalty schemes
Nine out of every 10 consumers say they want loyalty programmes, however, only 20% currently offer personalised rewards. Considering that over half would give up on a loyalty scheme because the offers were irrelevant to them, it’s time to re-think your rewards and incentives and use the valuable insights mentioned above to earn your customers’ loyalty with rewards to suit them. Making offers more relevant to each individual has been shown to positively impacts revenue, with over 36% of consumers purchasing from that brand again.
The true icing on the cake is that, not only do loyal customers give your revenue a boost with their repeat custom, they can also increase your reach with valuable brand evangelism (an organic word-of-mouth form of marketing.) When offers are personalised based on individual interests and lifestyle, 27% go on to recommend the brand to family and friends, in turn helping to increase your customer base.
Profile Personalisation delivers unique, real-time insights into your customers’:
- Personality Traits
- Affluence Score
- Interests & Hobbies
- Brand Preferences
- Life Events
- The Best Time To Engage
and more so that you can truly personalise communications, offers, and rewards to earn loyalty, boost reach, and in turn significantly increase revenue.
How can we help?
Learn more about how we can help your organisation deliver more personalised experiences. Book a demo today and see for your self how powerful our suite of solutions are.