When we think of the benefits of digital loyalty programs, we immediately focus on returning customers and their loyalty to the brand. And while those are critical aspects without a doubt, smart loyalty programs also have a lot to offer in the data department.
Businesses can build a dedicated strategy for specific groups with a high profitability potential by tracking and analyzing different consumer behaviors. This is a significant advantage that many businesses overlook. Only 50% of them use loyalty program insights to learn more about their customers, and only 34% harness loyalty data to track additional customers with similar characteristics.
Turning data into dollars
This is one missed opportunity that could make all the difference in the world for businesses. Data teaches us who our returning customers are, what they like, where they live, and so much more. Studies show that companies can enjoy a 126% increase in profit by basing business decisions on customer data.
If you think about it, most businesses operate according to their gut feelings and never really investigate customers’ preferences and needs. In the busy day-to-day race, taking a step back and examining the big picture is almost impossible. With data analytics, businesses don’t have to find the time and skill to do that and can rely on innovative, user-friendly technology instead.
Data also enables businesses to personalize multiple elements and boost profits by making each move more effective. Instead of creating content and offering benefits with the hopes of winning audiences’ hearts, we know exactly what each group will respond to and plan in advance. Today’s customers expect brands to take that extra step and 71% feel frustrated when their shopping experience is impersonal.
Here’s what loyalty data can do for you
Loyalty insights can support different business initiatives:
- Personalized coupons: As we’ve mentioned, personalization makes offers more effective. 78% of customers are more likely to become regular ones if they receive personalized offers. Coupons can be personalized based on age, location, or gender, as well as past shopping behavior and chosen preferences. Study shoppers’ habits and make the perfect suggestion right when they need it.
- Targeted campaigns: Loyalty data turns your online and offline ads into intelligent, successful marketing moves. From targeting specific audiences online based on criteria similar to personalized coupons to choosing a particular region for your billboards — data gathered thanks to your loyalty efforts will ensure that your ad money is wisely spent.
- Inventory planning: This step takes things further and turns your small business into a well-oiled machine. By analyzing and predicting customers’ behavior, businesses can prepare their inventory and know which products may be needed more during an upcoming period. Other business factors, like your cash flow, can also be estimated based on the promotions you’re planning to launch and what data tells you about people’s behavioral patterns.
What to look for in a data loyalty solution
Not every digital loyalty platform offers data, and not every data source would serve your business needs. Here are a few tips to help you find the right fit for you.
- Keep it real: Aggregated data may offer a general indication regarding people’s choices, but it isn’t necessarily relevant for your business. Make sure that the solution you choose is based on actual data from your business or similar businesses.
- Keep it simple: The data you receive from the chosen loyalty tool must be easy to handle, actionable, accessible, and straightforward. You shouldn’t have to deal with any complex analytics that may be overwhelming and ultimately useless. Seek critical data insights that don’t require any experience or skill level to comprehend.
Here’s how we do data
After you complete the initial, quick introduction questionnaire, Glue will set up your branded loyalty club and the AI-powered data capabilities that accompany it. You’ll be able to turn clear customer data insights into customized loyalty efforts based on real data from your business, as well as data points and benchmarks from other relevant businesses. We’ll analyze your customers’ behavior in ways that allow you to truly know the people behind the numbers and optimize your decisions accordingly.
Everyone likes to talk about digital transformations, but that’s a process you cannot complete without embracing data. Partner with a data-focused loyalty platform that understands your unique needs, because getting to know your audience starts with knowing what your business is all about.