How to Utilize Big Data Analytics Solutions for Loyalty Programs?

Customization, personalization, loyalty programs – these are only a few of the buzzwords doing the rounds in the retail and consumer engagement segments. Can the retailers or businesses combine the effectiveness of the three elements in enriching their consumers’ buying experiences? How can they better utilize their existing consumer information to further improve their consumer-facing services? Have they been successful in effectively engaging customers with their existing loyalty and benefits programs?

An effective answer to these questions lays in the application of big data analytics solutions to design loyalty programs that deliver valuable consumer experiences. The insights gleaned from these data analytics solutions enable retailers to achieve as well as improve their consumer engagement practices with bespoke loyalty programs for their customers. Mentioned below are a few quick tricks to combine the power of big data analytics solutions and customer loyalty programs.

1. Forecasting Consumer Experiences

The retailers have to ask the right questions to get the hang of what their customers like or what drives them to make more purchases at a particular outlet than others. Instead of asking questions like “why are their customers not loyal to their brands?”, the retailers better get to asking questions like “how can they improve their customer experiences?”. The application of Big data analytics solutions answers some of these queries as well and help predict your customer experiences.

2. Data to Guide the Sea of Consumer Services

It is now a proven fact that big data analytics solutions are a driver of enhanced marketing strategies and the same applies to loyalty marketing as well. A data-driven organization, with its embedded culture of analytics driving all forms of decisions, ensures that they design loyalty programs for customer driven by information and insightful analytics, rather than intuitions.

3. Repeat Customers to the Rescue

Statistics like 20% of their loyal consumers are responsible for 80% of the revenues and it costs a business about 7 times more in acquiring a new customer than retaining existing ones are quite common in the retail world. Despite loyalty programs for customers being an effective medium to engage consumers, it is equally essential that retailers collect data about their consumers’ buying behaviors and accordingly curate solutions for them.

4. Building on Existing Information

In continuation with the aforementioned point, it is expected that retailers collect information that builds on or enhances the credibility and reliability of the existing consumer data. This would further empower businesses in better understanding what their customer want, who are the repeat customers, which buyers spend more on what occasions, etc.

5. Driving Engagement with Data

The application of big data analytics solutions allows businesses to collect data like consumer demographics, affluence levels, age, buying behaviors and the like. These details shed considerable insights on which and what type of customers would stick to a particular brand for longer times as compared to the ones prone to trying out different options. The implementation of loyalty programs for customers can accordingly be customized by the businesses.