Coupons. Codes. Vouchers. Points. Miles. The list of customer loyalty programs and what they provide is ever-evolving. Or if it isn’t, it should be. While travel and retail are the most well-known industries to offer these programs, other businesses such as healthcare and insurance are coming into the mix as well. Because while everyone knows the adage ‘Know Your Customer’, today, it means more than just their name and what they like to buy. It also means customer service, quality, and a reason to return.Though there are a host of technological advances to help businesses track their customers’ buying journey, behavioral habits, and collect their Data, there is one old-school advertisement to consider. Word-of-Mouth. Consider what and how we review products and services. It’s the digital version of word-of-mouth (read: reviews), Data can transform your customer loyalty programs, if you have the right strategy in place.The Next Generation of Loyalty ProgramsIf you’re just entering the market and want to design your first loyalty program, here are two questions you’ll want to ask yourself before you begin:Why do you want to design a customer loyalty program? If you just want to do what everyone else is doing, it won’t work. If you can’t clearly explain why you want to launch, then you’re not yet ready. Once you can identify the business purpose or objective, then you can think about next steps.How do you define success? What will you use to measure your objectives? Here’s where Advanced Analytics really come into play as you determine which customers you want to target, decide what you want them to do, and ensure your program is flexible enough to grow as your business grows as well as consistent with your messaging across brand channels.Whether emerging or evolving, your business may want to design or relaunch customer loyalty programs. If you’re relaunching because your loyalty program isn’t driving business. Ask yourself why. Options abound in today’s marketplace and the noise of places to buy products is only getting bigger. How you stand out from the rest will be a major driver in the years to come.What Customers WantIn establishing and developing new loyalty programs, it’s essential to begin with the end in mind, and the most important question to drive engagement is this: What do your customers want? Consider these statistics when planning your program, hiring your staff, and developing quality products and services to ensure your customers return again and again. After all, it’s much easier to retain a customer than to acquire a new one.So, while you may know your customer at the surface level and perhaps even a bit deeper through their behaviors and buying habits, Predictive Analytics can also help improve your loyalty program offerings. How? By helping you refine your program to better understand your customers.Want to know what drives your high-value customers? Use Predictive Analytics to determine what you want them to do by understanding your analytics of their buying behaviors and customer journey. You don’t want to give away too much, but you also want to provide value in your offerings and your customer service.Customer loyalty programs are as much about service and product as they are about word-of-mouth and retention. When someone recommends your product on one of their social media channels, they are acting as ambassador for your brand. These are your most loyal customers and what your program will look like in 2022 and in the years to come.If you’re interested in Digital Analytics, Advanced Analytics, or Data Science just to name a few, Harnham may have a role for you. Check out our latest Advanced Analytics jobs or contact one of our expert consultants to learn more. For our West Coast Team, contact us at (415) 614 – 4999 or send an email to sanfraninfo@harnham.com. For our Arizona Team, contact us at (602) 562 7011 or send an email to phoenixinfo@harnham.com. For our Mid-West and East Coast teams contact us at (212) 796-6070 or send an email to newyorkinfo@harnham.com.
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