Research suggests focusing on customer retention efforts can actually increase a business’s revenue by 40%. After all, loyal customers are likely to be your most engaged, highest-spending, and frequent buyers over a long period of time. This is why customer loyalty programs exist — to foster strong bonds with customers and turn them into brand advocates.
Loyalty programs are scalable brand strategies that offer incentives to customers so they will continue to support your brand. However, there isn’t a perfect formula for a customer loyalty program; each brand must tailor-fit their loyalty program strategy to who their customers are. The best way to do this is through leveraging data.
The Benefits of Leveraging Customer Data
Customer data refers to all the personal, demographic, and behavioral data you’ve collected from your buyers over the years. Here are some ways customer data can improve your loyalty program:
Identify what consumers want
Data helps you personalize the messaging, offers, and rewards within your loyalty program. If your market research shows you that your customers value exclusivity, you can create a program that lets them “unlock” exclusive deals the more they support your brand.
Deliver relevant rewards
If your data tells you that customers spend more on flats than any other type of shoe, this means you probably shouldn’t focus on pushing high heels. Offering relevant rewards can encourage more customers to connect with your brand on social media, refer you to a friend, or complete your surveys.
Find ways to cross-sell
Cross-selling is the act of offering complementary items on the same or subsequent orders. It’s like asking someone if they want fries with their burger, which can boost sales. Data will show you which products customers are buying, so you can offer promotional deals to customers with a loyalty card.
Tips on Improving Data Science for Your Brand
If you’re not sure how to collect and maximize your data, here are a few tips that can turn your brand into a data-driven success:
Consult a data scientist
Precision and analytics are key to effective data science; disorganized and incomprehensible data won’t be of much use to anyone. It’s important to find a qualified professional to guide you through data-driven decision making. The rise of remote work has made it easier to get in touch with good data scientists.
Today the pool of data scientists available has increased as the study of the subject at higher education has expanded. More and more data scientists are now able to get their qualifications remotely through online programs and online degrees. They can even take an online master’s degree at a top university. Institutions that offer online master’s in data analytics go beyond just programming and gathering data, they also train students to draw pertinent insights that are beneficial to the specific business. These programs enable graduates to follow trends and identify opportunities to increase customer loyalty. Working with a trained data scientist can save you from the trouble of sorting through complex information over multiple touchpoints by yourself.
Tie everything back to your content
Content and data go hand-in-hand, so it’s important to maximize your data by using it to refine your blog posts, newsletters, and website messages. If you tie your loyalty program to your website and customers sign in, you can send special offers that are tailored to their level in your loyalty program.
Likewise, you can gather data based on how your customers receive your content. Omnichannel technology enables you to check which emails were opened, what offers they clicked on, and which products they were interested in.
Invest in a customer loyalty program software
It’s challenging to manage customers and their data from individual touchpoints, which is why you need a solution that combines everything into one specific software application.
The NeuroTags Customer Loyalty Program platform allows you to manage all your customers, automate your marketing, and create a custom-fit loyalty program that’s best suited for you. Contact us for a demo today.