The Driving Force Behind Retention
What can you expect from your loyalty program? Outcomes include increased customer profitability, richer data, and more.
Thank You!
Buyer's Guide to Enterprise Loyalty
Your business likely has a retention strategy in place, but a strategy alone is just the first step. A loyalty strategy builds a foundation of emotional loyalty, but a loyalty program is the means in which your business can successfully execute on your strategy to accomplish your retention goals. With an effective enterprise loyalty solution, your organization can expect a variety of outcomes, including the ability to:
Improve average order value, repeat purchase rate, and overall customer profitability
These internal metrics are an imperative focus for every business. A loyalty program is a key retention tactic that directly enables a business to accomplish these goals. On average, loyalty rewards program members in the US and Canada spend $99 more with traditional and online retailers than non-members within a typical three-month period, according to Forrester.
Collect more customer data
The decline of cookies and data accessibility means your business needs to collect customer data in new ways. A loyalty program provides the deep customer insights into product interests, engagement history, and purchase behavior that cookies could previously provide. See Chapter 1, Lesson 1 for more information regarding privacy changes.
Make unknown customers known
Logging in takes shoppers from unknown browsers to known customers by giving you the data to provide more tailored on-site experiences that drive conversion. Loyalty gives shoppers a reason to self-identify, log in, and engage — it’s the loyalty program that provides your team with the resulting insights. Your team can activate loyalty data by leveraging customer attributes across marketing messages and tailoring relevant on-site experiences, like displaying product preferences and redeemable loyalty rewards, when members log in.
Over 80% of consumers are more likely to make a purchase from a brand that provides a personalized experience. Consider using your loyalty program data to facilitate the tailored experiences an extra personalization tool might create.
With loyalty, your business can personalize every touchpoint: tailor the homepage to feature preferred products based on purchase history, automatically apply a member discount to product pages, send post-browse emails and SMS messages targeted by loyalty status or VIP tier, and more.
Unify data to mitigate silos
You’ve identified data silos and you need to build a single source of truth. A customer’s loyalty profile stores all of their data in one place, from the time they joined, to which of your social channels they follow, and their purchase and engagement behavior throughout your program.
Customers want to be recognized and rewarded at every touchpoint. The right loyalty solution should integrate with your key marketing channels, like your email service provider, SMS marketing solution, on-site point-of-sale, and customer service helpdesk software.
Increase new channel adoption
The rise of mobile commerce is driving adoption of new channels, especially SMS marketing, as keys to a successful retention strategy. Loyalty presents a direct opportunity for brands to incentivize SMS sign-ups by offering rewards. Over 76% of loyalty members will subscribe to receive SMS messages.
The combined power of a loyalty program and SMS marketing can enable a business to deliver targeted messages specifically to loyalty members based on their VIP status or point level. This level of direct communication can drive continued engagement and increase conversion rates.
