How a Boost with Personalized Offers Wins at Loyalty 3.0
Retailers who are getting Customer Loyalty right maximize every interaction with each customer to meet basic expectations for customer experience. However, those who are working towards Loyalty 3.0, know that just covering the basics won’t be enough to achieve the next state of engagement with their customers.
Loyalty 3.0 is the next stage of Customer Loyalty, going beyond transactional loyalty and forging an emotional connection with customers. It’s a state of engagement that will still be reflected by high performance against measurable loyalty behaviors. However, since emotions are subjective and cannot be measured quantitatively – everyone being on a spectrum and each spectrum also being unique – how do established brands get to Loyalty 3.0 in the Customer Loyalty race?
In 2016, Exchange Solutions was approached by a retailer with this very challenge. After many years running a loyalty program with consistent results, it was time to think beyond solid and steady to re-energize their most loyal customers with innovative solutions. It had become necessary to work on further bonding their loyal customers with their brand and get on the path to Loyalty 3.0.
Together, Exchange Solutions and the retailer developed a plan that focused on 3 major milestones in their loyalty customer lifecycle.
It was imperative that all 3 milestones improve in order to maximize customer engagement levels and increase overall value to the business. These were established as key behaviors that entrenched the member further with the brand.
To achieve expectations, the team decided to leverage the expertise of the advanced analytics group at Exchange Solutions to develop multi-faceted, hyper-targeted campaigns that were personalized to each individual member, to get on the path to Loyalty 3.0.
Here’s how it worked:
Here’s what was improved 1 year after the program boost:
While there is no true finish line when it comes to the race for customer loyalty, even Loyalty 3.0 is just a leg of this marathon. Not only do retailers need to compete with the market, they must continuously beat their own expectations to innovate and remain relevant. Quick promotions or mass offers don’t differentiate your brand or engage your members long-term. To be a leader and be miles ahead of the competition, you must train to achieve a real win at customer loyalty, measurable by the achievement of key loyalty behaviors.
Exchange Solutions helps retailers improve customer engagement through smarter loyalty programs and personalized offers. With more than 20 years of experience in the industry, the Exchange Solutions team develops innovative technology and data-powered solutions that take customer-obsessed retailers to the next level. Some of our retail clients across various verticals in the US and Canada include Brooks Brothers, Esso™ Mobil™, Sobeys Inc., Lowe’s, Safeway and Today’s Shopping Choice.