Loyalty

Points and rewards can make or break a loyalty program. But if you aren't using your sales data for customer centric marketing, and leveraging social networks, then you're leaving profit on the table.

    Sustainable customer relationships remain one of the most sought after goals for most retailers. Leading retailers have learned that a frequent shopper program itself is not enough to build sustainable loyalty. To ensure the success of a loyalty program, retailers must carefully collect all their sales data into a decision support system ready to provide business with customer insights.

    Product centric marketing ('who bought what' and 'what products sell with what other products") and customer-centric marketing are two valid approaches.  Customer-centric marketing is harder, but ultimately more profitable.  It focuses on identifying key customer attributes, segmenting customers, and then using modeling techniques to identify the most profitable customer segments to target.  One key model is RFM -- recency (time since last shop), frequency (how many times visited) and monetary (how much spent).  RFM, for example, allows you to identify the profile of customers that spend big, but visit infrequently, so that you can target them for a return visit.

    LoyaltyTech offers expertise in how to understand and target customers, as well as  systems to manage all aspects of your loyalty program.  Best of breed technology partners include Responsys and Omniture:  

    • Cost-effective loyalty & marketing systems
    • Customer profiling
    • Social-network integration
    • 1:1 lifecycle marketing and real-time offers
    • Self-service/rewards 
    • In-store portal