Could you tell us how retailers can create loyal customers and what the customers really want in return?
Stefan Romeis, our very own loyalty guru, grants us with his interpretation:
“I’m glad you asked! “Know me and respect me” is basically what the customers want and expect from a retailer today. “Know me” is about being relevant, personal – knowing who the customer is and adjusting accordingly. “Respect me” is about giving the customer a great experience in a respectful way. Use insights to treat the customer right – but not too much, and not too little.
A modern loyalty program is what retailers need in order to fulfil such expectations. It creates an opportunity and a way for the two parties – the customer and the retailer, to get to know each other better.
Today, a loyalty program should focus on improving the customer experience and using personalised data-driven marketing.
There are more touchpoints along the customer journey now than ever before. The customer experience is the overall perception of a brand based on all those touchpoints.
For a retailer, the challenge is to manage all customer´s interactions while simultaneously moving the concept of loyalty from transactional to engaging. Thus, moving from basic – like going from using coupons with small impact, via convenient and emotional, to interactive communication. Transparency and openness towards the customers are essentials on this level. The customers should be able to communicate back to the retailer about their individual preferences, their opinions, and be heard. Focus groups and consumer-aided product development are great examples of this.
Personalised Data-Driven Marketing
Remaining relevant and personal requires individual offerings and tailored rewards based on the customer’s personal profile and buying behaviour. To do this, you need to utilise sophisticated data analysis combined with automatic processes to delight and surprise customers, of course – still following laws and regulations such as GDPR. The full potential of data-driven marketing can be achieved by using a cloud-based performant data engine with a complete chain of personalised loyalty functions on top.
So, to summarise: To give customers what they really want, and in a profitable way, you need a solution supporting the loyalty process from the customer to the retailer and back to the customer again. This over multiple communication channels and platforms. It might sound complicated – but that’s why my team and I are here to help”.
Download our report Customer Loyalty through increased customer insight or learn more about our solutions for customer loyalty.