When you know your customers, you can customize their experience with your brand and create interactions that are fun, relevant and personal. But when you don’t, things go a bit differently. Follow these two customers in their journey with the same brand – one is an identified loyalty member. The other is an anonymous shopper.
On the left, the enrolled shopper receives tailored offers based on the amount she spends, points earned, product preferences, even her birthday. She is rewarded for her loyalty, and communications are tailored based on the data in her customer profile. The brand is able to calculate her Lifetime Value, AOV and frequency and can be proactive about retaining her if any of these values begins to decline.
The unknown shopper on the right receives generic communication and is not rewarded or recognized each time she shops. The brand has no way to engage her, retain her or understand her potential value over time.
If you were a customer of this brand, which experience would you rather have?
Loyalty programs set the stage for positive experiences because they start with identification. Over time, their purpose is to leverage each additional data point to personalize the experience going forward, working to identify and retain the valuable customers.