How to use data to unlock the future of customer loyalty

Brands in all industries are looking for new ways to engage customers. But what strategies actually create real, lasting relationships? Earlier this month, Achille Traoré, CEO of White Label Loyaltydelivered a speech at FUTR Europe. The event focused on new thinking and digital transformation in marketing, retail and commerce.

If you missed the event, here are the highlights we took from Achilles’ talk on “How to Use Data to Unlock the Future of Customer Loyalty”.

What is the current state of affairs?

There are three key things happening in our world today:

1) Customer expectations are rising. Today’s consumers know the value of their data and expect you to manage it properly to personalize their shopping experience.

2) Innovation has been multiplied by 5. The pandemic accelerated the speed at which organizations are undergoing digital transformation. Brands are now more aware of the need to be data-driven.

3) Brands move from acquisition to retention. Brands know that retention is cheaper than acquisition, and that existing customers are more profitable than new ones.

So how should brands approach customer retention in this changing environment?

During Achille’s presentation, he suggested the following simple formula:

The right kind of data + innovative tools and technology = understanding and driving customer behavior.

Creating deeper relationships with customers is possible through data and technology that can drive specific customer activity. However, White Label Loyalty sees the same 3 challenges present themselves:

1) Data silos. Enterprise data is often isolated and scattered across multiple sources due to legacy technology (or lack thereof). This means that legacy systems no longer work and businesses need a solution to blend the offline and online worlds.

2) Lack of ideas. Many organizations are data rich. But data is useless if you can’t get clear, actionable insights from it.

3) Loyalty is broken. 99% of existing loyalty programs are transactional only. Traditional loyalty programs don’t work in today’s digital world – they aren’t flexible enough and can’t create emotional loyalty.

Brands need to structure their data the right way. It means connecting data points on a single platform. Then capture real-time customer interactions and use segmentation to discover micro-audiences to target them with personalized messages.

For data-rich but information-poor businesses, take advantage of the power of AI. AI modeling can help you find insights in your data, as well as predict customer behavior, churn, and preferences.

Finally, in today’s attention economy, it’s more important than ever to recognize the customers who interact with you at every level. Customers want (and expect) to be rewarded for any type of activity. For example, you can reward someone for sharing your product on social media or for submitting a review. Going beyond transactions is essential to engage customers in the digital world.

Global trends that will impact customer engagement

The digital landscape is changing

We are moving towards a “cookie-free” future. This is a major threat to brands that are not already collecting consensus and insightful first-party data. Many global companies struggle to collect this kind of data without relying on wholesalers and retailers. That’s why they need technology that makes it easy to collect customer information and reward proof of purchase. One method is to use receipt scanning technology. Digitizing receipts allows businesses to extract detailed transactional data and start a direct relationship with end consumers (both B2B and B2C or D2C).

Customers want a seamless shopping experience

For brands that operate in different countries and industries, the customer experience can get complicated. Card-linking technology can create a seamless experience from a customer’s perspective by engaging them without requiring traditional transaction proof methods such as holding loyalty cards or scanning QR codes.

The Rise of NFT Rewards

There is so much potential in use cases that blend NFTs, blockchain technology and the metaverse into the customer experience. Brands can create anything in the form of a digital token, with any type of reward or unique experience attached to it. Since NFTs are completely unique, brands can also build an exclusive community of loyal NFT owners. These unique “blockchain tokens” are already being used as passes, event tickets, and “keys” that unlock special rewards.

Loyalty is more relevant today than ever

Customers are switching brands at a faster rate. Brands need to be proactive in the strategies they use to build loyalty. In fact, customers are ready to pay more for a plus valuable live.

Some brands aren’t even aware of all the customer interactions behind their data. Any type of event – ​​from offline purchases to a campaign interaction, social media activity, or entering a geofence – can give you insight into your customer behavior. And with the right technology, you can reward those customer “events” to drive more of what you want to see.

Loyalty means using data to engage your customers at any point in their journey with you. Brands that encourage and reward customer engagement will build better relationships and ultimately drive loyalty.

How many are your Are customer interactions worth it? You are probably sitting on a gold mine of data! Don’t miss this valuable customer insight.

How to use data to unlock the future of customer loyalty

Joseph P. Harris