As individuals, we’re hardwired to appreciate the personal touch and feeling that our needs are considered by others. That act of creating something tailored to our specific wants and needs reflects a level of effort and interest that resonates with us.
Beyond that warm-and-fuzzy feeling, though, lies the business case for turning personalization into an effective marketing strategy. In fact, a strong, data-driven personalization strategy is no longer a “nice-to-have” feature of the best-run loyalty and marketing programs, but a business imperative for brands and merchants across every spend category.
Today, brands must use data to better understand their customers, including their very different needs, preferences, behaviors and expectations. This information, when consolidated to create a holistic or single customer view, can then be analyzed and turned into more meaningful, engaging experiences for each shopper and driving greater revenue opportunities and operational efficiencies.
Creating value through personalized offers, communications and rewards is what led Loblaw, a leading retailer in Canada, to combine two of the country’s most beloved loyalty programs – PC Plus and Shoppers Optimum – into PC Optimum, one of the largest loyalty programs in Canadian history. Not only will PC Optimum provide more redemption options and greater convenience to millions of members, the program will generate data that Loblaw needs to create unique and personalized experiences for each of its shoppers.
With data of this magnitude – combined with the technology to effectively collect, manage and apply it – brands like Loblaw know exactly who their customers are, what they want and what they expect, on every channel. And with that information, merchants can deliver personalized offers based on the products each shopper buys most often, both in-store and online.
The good news is, consumers are willing to provide the data necessary to drive personalization. In our recent Shifting Loyalties report, we found that if Canadian consumers disclose additional information about themselves, they expect in return:
- Personalized communications (45%)
- Personalized incentives and rewards (35%)
- Improved omnichannel customer service (25%)
- Communication in the channels they prefer (25%)
- Geolocated mobile offers (20%)
Meeting consumers’ expectations in these ways will ensure a free-flowing pipeline of data to nurture deeper relationships with customers. The end results? More frequent, ongoing redemption that will grow a company’s bottom line. This is the new business imperative, and brands like Loblaw are rising to meet it.
To learn how your brand can follow Loblaw’s example and start using customer data to create better personalization and drive effective loyalty and marketing strategies, contact us at email@example.com.