The Customer Loyalty Podcast

Using advanced segmentation and lifecycle management models, loyalty programs can play a significant part in the entire data value chain by allowing the gathering of member personal data, analyzing the data on loyalty platforms, and employing the insights gained to encourage deeper member engagement. This enables managers of loyalty programs to find out when, why, and how members interact with the program with the help of loyalty analytics platforms. Compared to their predecessors, loyalty program owners today are incredibly fortunate. Over the past three decades, loyalty program management has shifted from simply running a loyalty program to companies wanting to harness the “invisible” power of such programs through the insights they provide into the behavior of their customers, the ability to create better relationships & informed decision-making for targeted marketing campaigns. Today, the focus has shifted again to the design & management of high-value customers through segmentation and quality customer experience across various channels & touch points. Businesses can access customer data insights in a variety of ways. With the technology available today, brands can easily access real-time reporting dashboards & segment insights using a loyalty program software. This is especially useful for smaller DTC brands, who don’t have to call in fancy analysts & data scientists to analyze their data.

Many brands invest heavily in their overall customer experience to help their customers achieve this feeling. Why? Because customer satisfaction is the predecessor to customer engagement. The impact of customer satisfaction and engagement on value creation and customer loyalty is more actively recognized by many experts. Today, more and more companies strive to foster positive relationships with their customers to unlock their satisfaction and loyalty. But, satisfaction alone isn't enough to secure loyalty. Customer relationship management has shifted its focus on engagement, trust, and dedication. In these new times, the key to effective customer management lies in satisfaction and emotional connections. One study showed that fully engaged customers bring 37 percent more annual revenue to their primary bank than actively disengaged customers. In the customer-centric and highly-competitive eCommerce space, customer engagement is a critical success factor, and interaction of a brand and a customer is becoming a key element in the process of value creation for both parties. Customers that are actively engaged with the business are more likely to stay longer, spend more, and recommend you to others. Engagement is also one of the most important components that can help eCommerce businesses capitalize on customer loyalty.

A loyalty program is supposed to be the cure for the ailment that plagues many businesses: customer churn. By giving out incentives and rewards to your customers, you increase purchase frequency and average order value per customer. According to a study by Markinblog, the probability of selling to an existing customer is 60-70%, while the probability of selling to a new prospect is only 5% to 20%. The loyalty programs statistics sounds great, right? yes, but the truth extends further than that. Your loyalty program is underperforming and becoming a financial burden. Before you lay the blame on marketing over-hype campaigns of loyalty systems or how the loyalty gods are dooming you for eternity, there's a good chance it's your fault. If you're looking for ways to improve the return of investment of your loyalty program, then you're in the right place. We will take a deep dive into what may be preventing you from reaping the benefits of your loyalty program, and how to fix it before it's too late.