Build lasting customer loyalty with 1:1 customer personalization
With loyalty programs saturating the market, it’s more important than ever for brands to have a partner they can rely on to uniquely stand out from the competition. Segmentation and personalization are a great start, but delivering a unique experience to each customer on an individual basis is key to developing an emotional connection to keep those customers coming back for more.
Tenerity partners with its customers to do just that: build loyalty with every engagement using machine learning and automation.
Mark Johnson, CEO of Loyalty360, spoke with Rachel Bicking, Chief Digital Officer at Tenerity, about how brands can leverage new technologies and capabilities to drive unique experiences, engagement and, most importantly, loyalty client.
The 5 C’s – Committed to Connecting Customers to the Right Content
Tenerity is committed to connecting customers with the right content at the right time using machine learning and automation. For all industries – retail, hospitality, financial services, utilities, energy, restaurants – Tenerity offers an extensive catalog of end-consumer content to build customer loyalty and loyalty.
Not all customers are created equal, so they should be treated as such. While basic rewards programs offered discounts or coupons, it’s important for brands to understand that not all customers are motivated by money. Some customers are motivated by gift cards, some by cash back, and some are interested in experiences. Deciphering customer preferences down to the individual is where machine learning, data and analytics come into play. Tenerity provides customers with intelligent engagement solutions to give customers a reason to connect with the brand.
Gamification offers keep customers engaged and coming back again and again. Tenerity combines this with an easy-to-use customer experience, whether through app, desktop, or in-store, by connecting all channels through data.
According to Rachel Bicking, Tenerity’s Chief Digital Officer, “We build brand loyalty and intelligently engage consumers at every stage of their journey, whether it’s acquisition or retention, growth or advocacy.”
Rewards as personalized as the person receiving them
Rewards content is becoming increasingly important in the customer loyalty industry, and recognizing individual preferences is key to engaging the customer appropriately. According to Bicking, “If you don’t engage each of these people, you’ll never get the adoption rate you want.”
Tenerity believes that if a company has the right content to delight 100% of its customers on a personal basis, it encourages greater activation and adoption. This content can be anything from travel rewards to cashback, gift cards, concert experiences, even NFTs and carbon credits. It all depends on what will motivate customers to take action and become more loyal or engage with a new brand.
Says Bicking, “Our goal is to evaluate specific rewards data and analytics that will appeal to each individual, and offer them ready-to-use, in our catalog.”
Customer Loyalty vs. Customer Engagement
There’s a difference between customer loyalty and customer engagement, and Tenerity helps customers maintain both. Customer loyalty is the result; it is the enthusiasm, advocacy and feeling that a consumer is attached to a brand and will choose it over other brands when given the choice.
“It’s the grip factor,” says Bicking. “While engagement is the tactic or catalyst to ensure that loyalty. Our platform builds loyalty through the smart engagement platform.
Understanding what profitable loyalty means has been a challenge for brands in terms of metrics and KPIs. Loyalty has traditionally focused on inferred metrics, such as if the brand engages a customer, they are less likely to go elsewhere. Adding value, points, etc. gives consumers reason to come back. However, there is not always a direct attribution to the loyalty program.
Tenerity measures inferred profit using specific metrics – customer lifetime value, churn reduction, active vs non-active members – to understand incremental value. Additionally, due to the breadth of content provided by the company, direct revenue is generated and induced. He creates the network effect.
The network effect is essentially the network of merchants offering the best deals to attract the best customers. This then creates a cycle where the greater the volume of consumers, the better the merchant’s offer, which accumulates more consumers, etc., which in turn creates direct and indirect measures of profit and loyalty.
Make the brand likeable and memorable
Customer loyalty is constantly evolving in complex ways. When brands seek to reward their customers with more non-transactional rewards, the key is to make the brand likeable and memorable. Loyalty programs and engagement programs blur the lines between channels. Whether in the physical world, the metaverse, or another digital channel, consumers are looking for ways to interact with the brand in the moment. Brands should always be ready and keep delivering exciting new elements to consumers to deliver a more immersive experience that encourages them to return with greater frequency.
Consistency is key to reducing noise. What works well for brands is to constantly have new experiences for consumers to discover, to immerse themselves in the brand without getting tired. Brands do well to focus on finding a reason to communicate with their customers every day, and then invest in a platform to automate that at scale.
The challenge of measuring emotional loyalty
Emotional loyalty can be a challenge for many brands to measure, but one way to look at it is through customer advocacy and chatting, to see how passionate the customer is about the brand, product, and loyalty program. . Establishing the right measurement cycle is important for brands to determine whether or not they are making progress in this area.
While emotional loyalty is the ultimate game for most companies, it’s important to note that not all consumers feel an emotional connection to a brand. And not every brand can evoke an emotional response. Says Bicking, “Perhaps the goal isn’t always emotional loyalty, but the growth and evolution of a customer’s attachment and feelings toward a brand.”
Companies can achieve this by meeting customer expectations while exceeding expectations in other areas. “Do the basics right and elevate the others,” Bicking adds. “It’s a formula for understanding exactly how brands can deliver the commitment to be better than the competition.”
Engage the customer first
For any brand looking to improve their customer retention efforts, Tenerity advises focusing on consumer engagement first. Whether it’s loyalty or engagement, with the end goal in mind, brands need to understand what that vision looks like and then take the steps to achieve it.
Bicking says, “We think about timing, tone and treatment. We determine the offerings, what’s in the catalog, and then we look to centralize the program in one place to make it easier for the customer.