How Brands Can Make Better Use of Loyalty Data
In today’s competitive landscape, loyalty marketing is evolving. It’s no longer sufficient for brands to rely solely on discounts and rewards to engage consumers. As highlighted during the virtual event, “Loyalty 2.0: Capturing – and keeping – the customer,” marketers must adopt a more sophisticated and data-driven approach to stand out in a crowded marketplace.
The Shift Beyond Traditional Loyalty Programs
While many consumers expect value from loyalty programs, the increasing number of options has created a cluttered environment. Eric Beane, Chief Analytics and Data Officer at VML, asserts that some loyalty programs are stuck in the past—like outdated punch cards—focusing solely on points in exchange for discounts. What’s missing? The essential human element that forges emotional connections with customers.
H2: Data as the Cornerstone of Loyalty
Harnessing First-Party Data
Loyalty programs present a unique opportunity for marketers to collect crucial first-party data, especially as reliance on third-party cookies diminishes. However, a common pitfall lies in the siloing of this data within various marketing departments. Tamara Oliverio, Vice President of Loyalty and Customer Experience at Epsilon, emphasizes the urgent need to dismantle these silos for a cohesive consumer experience.
“It’s not just about gathering data; it’s about creating cross-functional partnerships that inform smart targeting and enhance overall marketing efficiency,” Oliverio says.
Collaboration is Key
In an era of budget constraints, the challenges of collaboration become even more pronounced. Teams often operate as if they belong to entirely separate entities, pursuing different goals and overlooking shared victories.
“Legacy silos turn data sharing into a negotiation rather than a collaborative effort,” Beane explains, highlighting the need for unified strategies in leveraging loyalty data.
H3: Rethinking Loyalty in Varied Markets
The Restaurant Industry as a Case Study
Some industries, like restaurants, have historically embraced loyalty programs. The COVID-19 pandemic acted as a catalyst, propelling consumers towards online ordering and paving the way for innovative loyalty strategies. In contrast, the Consumer Packaged Goods (CPG) sector faces challenges, as traditional loyalty methods may not seamlessly translate to its landscape.
Economic Uncertainty and Consumer Behavior
As economic pressures mount, savvy consumers are increasingly on the lookout for better deals, opening doors for new entrants in the loyalty program arena. According to Epsilon data cited by Peter Adams during the event, 70% of consumers join loyalty programs for discounts and perks. However, merely introducing a loyalty program isn’t enough. Brands must differentiate themselves to keep customers engaged when the economy rebounds.
Oliverio stresses that beyond financial incentives, there is significant value in deepening customer engagement:
“Loyalty isn’t just about driving purchases. It’s about cultivating a relationship that allows for more meaningful interactions with the brand.”
H4: The Future of Loyalty Programs
With the increasing expectations of consumers, brands need to explore innovative loyalty strategies that extend beyond temporary discounts. They must forge deeper connections, utilizing insights gained from loyalty data to create tailored experiences that resonate with their audience.
The “Loyalty 2.0” event, hosted by Marketing Dive and affiliated publications, shed light on these essential shifts in loyalty marketing. For a more in-depth understanding, you can access the on-demand playback here.
In conclusion, as the loyalty landscape continues to evolve, brands that prioritize data integration, collaborative strategies, and genuine engagement will be better positioned to not only attract but retain loyal customers in a rapidly changing market. The time to rethink loyalty is now!
