January 2015

 Loyalty Programmes - The Case For Greater Personalisation


Posted @ 1700:00 on 02January 2015

Loyalty Programmes Case For Personalisation and Relevancy : InfographicIntroduction

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


 "Profit through Personalisation"

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

• discounts

• channels of communications

• recognition

• 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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