As many modern businesses realize, it is often not enough to have a one-size fits all rewards program.. Instead, these programs must be highly relevant and valuable to the customers receiving them, and this means making customization a priority. But how does a firm develop a personalized loyalty rewards initiative that truly drives engagement and increased spending in a certain demographic?
What are the goals?
According to Inc. Magazine, the first step in harnessing the power of rewards programs is to decide what the enterprise's goals in the process are. Does the business primarily want to increase acquisitions? Should it focus on boosting customer retention? And what types of relationships does the company feel are most valuable? Once these questions are answered, it may be easier to get started.
In addition, Inc. advised that it can be a good plan to clue into what competitors are doing to drive results. With this knowledge, an enterprise can position its own offerings to stand out.
The next step in creating rewards programs is gaining access to the right information to make the project possible. If an organization doesn't have substantial insight into the nature of both potential and current customers, it's possible that their targeting efforts will miss the mark. Inc. suggested that one good way to collect this information is by deploying a loyalty card. As users begin to use these tools to make purchases, marketers can analyze their activity to determine what products and services a demographic enjoys and what else it may be interested in. While some companies may believe that consumers are hesitant to part with their personal data for marketing purposes, the exact opposite is often true.
"As a consumer, generally I am excited to give those sorts of permissions," Chris Cottle, vice president of marketing and products at Allegiance, told the source. "If the company I'm giving it to is smart, that means I get less marketing and more targeted marketing."
Hotel Business Review pointed out that personalization works in any industry, including hospitality. The source explained that many guests today are keen on seeing higher levels of customization, and using a loyalty program to find out more about their needs gives hotels the opportunity to meet those expectations. Surprise and delight tactics and location-specific coupons are great options for hotels.
Put it to use
Inc. noted that the next step is to put this data to use to make more intelligent and customized rewards wherever possible. For example, the news provider explained that a bakery that finds a certain segment of customers frequently buys cookies could offer discounts for a local dairy.
Another example is packaging categories of discounts and savings based on customer behavior or demographics into unique savings programs. For customers that indicate they travel frequently, you can create a customized "travel savings" website that enables them to save on hotels, rental cars and local restaurants wherever they go.
Consumers see these types of discounts as highly valuable, and they're more likely to redeem them and feel favorably about the brand that provided them.