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3 Ways to Leverage Your Loyalty Program Data


With eCommerce experiencing a boom during the COVID-19 pandemic, consumers now have even more options for purchasing products and services from around the world. A blog post on honing customer loyalty programs from Retail Customer Experience pointed out that if a customer returns to the same brand or store more than once, that particular retailer has a great opportunity to develop a genuine relationship with the customer. This is especially true when coupled with a strong customer loyalty program that will help drive repeat visits.

However, many retailers aren’t able to fully leverage the data they have access to. Customers want to receive personalized offers and recommendations, but brands cannot tailor these activities without clean, actionable data. In our post called Do I need to have a Customer Data Platform in Place?, we discussed how companies need to invest in a customer data platform (CDP) software that combines data from multiple tools to create a unified customer database. Here are three ways you can leverage customer loyalty program data from a CDP:

Create a true 360-degree view of your customer

A 360-degree view of a customer is a collection of all customer data in one place, including basic contact information, purchase history, customer service interactions, and social media behavior. As this information may all come from different departments, it’s necessary to use a CDP in order to break down silos and create a single, usable source. By compiling these touchpoints, you’ll be able to create a clear picture of each customer’s relationship with the brand.

Having a 360-degree view enables marketing professionals to predict customer behavior. When you’re equipped with data know-how, you can reveal time-based trends and repeated behaviors through your CDP. For example, if most customers redeem rewards on Thursdays and Fridays, you can launch a product or a flash sale on those days to make the most of these traffic spikes. When you have a complete picture of your customer’s situation, you can better anticipate their needs and adapt your services as needed.

Personalize communication with customers

Gone are the days when brands could send a marketing email en masse and hope for the best. Most customers are aware that their data is being collected across platforms, so they expect to receive highly relevant content and offers in return. In fact, customers are more likely to gravitate towards brands that truly understand what they need, so you definitely have to leverage CDP data to convert more leads and drive up your company’s revenue.

There’s a high importance in analyzing data when it comes to creating hyper-personalized campaigns. Analytics enables you to understand what your community is interested in, where they are, and what time they’re most active, so you don’t have to work in the dark for a more personalized approach. If a customer logs in to your website at the end of every month to buy a skin brightening product, you can send content with relevant skincare tips, recommendations for complimentary products, and discount coupons for their purchase next month. Insights on your customers can translate to a much more personal approach that they would value.

Improve customer retention

According to ZDNet’s article on rethinking customer service, 75% of customers explored a new retailer in the early days of the pandemic, and 60% of those customers reported that they will stick with their new choices even after. With customer loyalty up for grabs, it’s vital to create a holistic customer experience when new prospects do business with you. Your loyalty program can help you develop customers into loyal brand advocates.

A CDP lets you identify touchpoints and pain points among the customers you retained; the data can inform you on what made them stay, and how to make their path easy for others to follow. It can also indicate areas where users failed to stay engaged, allowing you to resolve those roadblocks. From there, you can offer the right loyalty program in exchange for perks and rewards that are genuinely meaningful for your target audience. Identify top spenders who are receptive to upsells, and create exclusive offers to reward them appropriately. On the other hand, you can also find at-risk customers who have a low engagement with your brand and send them win-back offers to improve retention.


Written by Reese Jones

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