The benefits of unifying loyalty and CDP data. Three CDP use cases for customer loyalty.
Enterprise customer data platforms are useful for improving loyalty by giving personalized and consistent experiences to all customers at any time. The CDPs aggregate your company's information, making it easier than ever before to anticipate what they need next - which means you'll be more likely to keep them around.
The data can help marketers measure and track customer behavior, which leads to more personalized content across channels. By developing a dynamic relationship with your customers, you can trigger communications that drive long-term engagements; this sets up an ideal foundation for successful marketing campaigns.
Data is the lifeblood of any company, but it doesn't just fuel growth. Customer data platforms are here to save your day with their ability not only to recognize churn risks but also take action on customer insights for personalized experiences that inspire long-term loyalty.
Benefits of an integrated CDP-loyalty system
Customer feedback loops
The CDP-driven loyalty program helps brands drive this feedback loop at scale across complex use cases. This deep understanding of customer behavior encouraged through a cohesive experience and reinforced by data sharing creates more engaging experiences for all individuals on your site - one that can be just how they want it.
Cost savings from operational efficiencies
Robustness in the pipelines can be a significant game-changer for enterprise brands that handle millions of data sets. It makes business sense to have a unified platform for collecting data, segmenting audiences, and managing your campaign/rewards from a cost perspective. Operationally, an integrated platform reduces data lag (between the collection, segmentation, and execution) and allows you to adapt faster to customer behavior, most often in real-time.
As new and emerging technologies like Augmented Reality (AR), Virtual Reality (VR), and the Internet of Things (IoT) contribute more data. The CDP in the future needs to support innovation as the product team adds these technologies to the CX. For instance, health devices that measure your need like blood pressure, blood. A CDP-driven loyalty platform helps you craft delightful customer experiences that drive good behavior.
The 360-View of the Customer
All the data comes to building a 360 Degree view of the customer. Loyalty programs offer retailers a massive amount of transactional, behavioral, and demographic data they can work with to update and innovate on their campaigns. A CDP-layered loyalty system can quickly sync and unify this data with other non-loyalty-generated sources like POS, email marketing, etc. to create a far richer customer profile quickly and easily.
Campaign ROI & Engagement Optimization
A CDP-driven loyalty program helps marketers analyze the effectiveness of a campaign, promotion, or incentive in real-time. Real-time measuring can help fix issues around high acquisition costs or content ineffectiveness. In the long run, the platform helps marketers make predictive and prescriptive actions to ensure the success of a campaign or a promotion.
Identify At-Risk Customers
New customer acquisition is up to 25 times more expensive than retaining your existing customers. And on average, your current customers are 50% more likely to purchase new products from you than new ones. In other words, it pays to know which customers are at risk and convince them to stick around using a retention strategy.
Start by understanding the common characteristics and behaviors among each churned customer. Use lookalike modeling to create a profile of high-risk customers, then operationalize this model within your CDP to spotlight similarities among your existing customer base.
Next, you should segment your at-risk customers and develop a campaign to repair the relationship with them by reminding them of all they are losing out on if their favorite product or service isn't around any longer. You can use this CDP (customer development plan) as an automated process, so once someone's added to that list- it sends targeted communications right away.
Optimize Post-Purchase Engagement
So many things can impact customer loyalty, but what comes after the sale might well be crucial. Make sure you focus on keeping your customers happy and engaged to keep them coming back for more.
79% of consumers say they are only likely to engage with an offer if it has been personalized to reflect previous interactions the consumer has had with the brand. This stat means that the customer’s last interaction must be interpreted in real-time and make a compelling offer.
Your team can orchestrate connected customer journeys that incorporate post-purchase messaging with a single, intelligent solution. Personalized recommendations for customers from products they have previously purchased and abandoned cart reminders when necessary based on their journey’s specific needs can increase repurchase by upwards of 30%.
Your CDP can be used to flag customers who haven’t made a purchase over a certain period and automatically target them with campaigns designed to drive new purchases, whether by highlighting relevant products or promoting limited-time sales that increase buying urgency. If you have a previously loyal customer who is close to becoming a lost customer, this approach can help retain their business and increase revenue.
The best way to make customers stay loyal is by giving them a reason not to. Launching a rewards program or something similar will give your followers reasons for sticking around and continuing their relationship with the brand.
Lookalike Loyalty Campaigns
Using your CDP's lookalike modeling functionality, you can uncover customers who resemble those already part of loyalty or rewards programs. You then have the option to automate omnichannel campaign messages encouraging them to join and incentivizing spending over time for greater benefits from both offerings.
Minimizing customer churn is about understanding your customers and tailoring a business strategy to suit their wants. This requires an easy-to-use CDP that empowers users with access, information on how they can quickly activate it across different channels where you need them most.
From a marketing perspective, CDPs and Loyalty Platforms are two sides of the same coin. They both serve to increase customer engagement and long-term brand loyalty - it simply makes sense that the two would be integrated on one platform rather than disparate ones.
Customer data platforms are quickly becoming the backbone of successful customer loyalty programs. Why? Well, it’s because they offer so many benefits to both marketing, sales, and operations teams in terms of information that any company can benefit from them. Our experts have years of experience integrating these types of platforms with various companies to help them become better at understanding their customers while also saving time and money on operational expenses. If you want more information on how a CDP could transform your team, just let us know! Give us a call today for more information on what we do, or contact our website for some free insights into how this type of technology can improve your business.