What Type Of Data Can A Gift & Loyalty Program Provide Your Business?
Know Your Customer
In an increasingly competitive world, more and more companies are turning to customer loyalty programs to focus on customer development and retention. These loyalty programs come in a number of types and styles, depending on the goals and nature of the business. Sometimes, something as simple as a gift card program will suffice. Often, however, the effort is much more extensive.
Any effective marketing strategy has as its ultimate goal the conversion of prospects into customers, then those customers into repeat purchasers. Well-designed loyalty programs aid in that process. With modern computer capabilities, the ability to collect, store and manipulate massive data on transactions and customers is no longer a hurdle.
What Data is Useful?
Even though it is now affordable and practical to collect reams of data, the challenge is deciding how to use what data. There is also a growing concern over the issue of customer privacy and the collection of individual data. In the era of what is called “big data”, companies are able to process billions of pieces of information and assemble it into usable information.
For the business owner, it is important to understand that customer loyalty programs provide two basic types of information. The first is specific to an individual customer and account. The second level of data encompasses the overall customer database. For example, a loyalty program shows that a specific customer bought a specific type of lipstick at a certain time and that that customer used a coupon. With that customers approval, that information provides the opportunity to target that customer with coupons and offers for compatible products.
At the same time, that data collected across all transactions will tell a business how many of the same lipsticks were sold, how many were bought with coupons, how many were bought by non-program members, what time of day the purchases were made, and many other relevant bits of information. Thus, customer loyalty programs provide a number of ways to evaluate what is working for a retail business.
Even a gift card program can track when a card was purchased, how it was ultimately used, and when it was redeemed. It provides helpful information on the overall profitability of such a program.
New tools and techniques allow the business owner to manage a business at a totally new level of detail. The challenge lies in designing and using such loyalty programs in the most effective manner possible.
LoyalMark has all the tools you will need to launch a successful loyalty program. Download “Why Loyalty Programs Aren’t Just for Big Businesses” to get started.