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Posted @ 1700:00 on 02January 2015
Increasing relevancy through personalisation is a significant opportunity across the customer journey - an opportunity that goes beyond loyalty programmes
We looked at the performance improvement and CX improvement from greater personalisation in a recent blog
Here we focus on loyalty programmes and the challenge of how to maintain relevancy and engagement
Armed with significant customer data, loyalty programmes have the opportunity to introduce significant personalisation across channels.
Many loyalty programmes have not yet got close to mass customisation across the customer journey, yet marketers overwhelming agree introducing greater personalisation leads to improvement in key loyalty metrics and in turn incremental ROI
Loyalty Programmes Need to Improve Relevancy
CIRRUS Marketing Consulting's online poll showed just 14% strongly agreed their loyalty programmes in general communicated with them across channels in a relevant way and tailored to their needs , interests and purchase history
What do we mean by Relevancy ? It can include
• offers and promotions
• channels of communications
• news and information
• customer service
Loyalty programme relevancy can be improved
• 56% of consumers say they are sent irrelevant rewards/ discounts
• Just 39% agreed communications were personalised
• Just 25% of 65+ year olds preferred smartphone to manage their programmes , though 41% of under 24 year olds preferred smartphones
More than half of loyalty programme members say they are considering ending their membership if they are not given relevant content / offers
Personalisation and Privacy
The clear majority expect loyalty programmes to do something useful with the personal data they share.
How many loyalty programme ignore the data they collection on sign up through preference centres and create generic welcome programmes ?
75% said relevant content was a benefit of sharing personal information
Common sense and research will help loyalty programme managers know when personalised becomes creepy. Clear policies, transparency , and permission based approach are prerequisites for operating a mass customised programme
Personalisation increases loyalty programme satisfaction by up to 4.6 x
93% of those who Strongly Agreed programme communications were relevant were satisfied overall with the loyalty programme.
4.6 times higher than those who strongly disagreed
Understand the path to relevancy and managers can dramatically improve engagement, programme profitability and the Customer Experience
See "Profit through Personalisation" for more on the challenges and opportunities of creating personalised marketing at scale
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