Brands are increasing their focus on loyalty programmes as they look for more reliable ways to retain customers, encourage repeat purchases and reduce dependence on costly acquisition.
Existing customers are often easier to engage than new ones, particularly when consumer spending is under pressure and audiences are spread across multiple channels. A well-designed loyalty programme can help a brand increase purchase frequency, introduce customers to more products and extend the length of the relationship.
Loyalty programmes are also becoming more sophisticated. Traditional points-based schemes are being replaced by platforms that use customer data, artificial intelligence and marketing technology to deliver more relevant offers and experiences.
60% of consumers are likely to spend more with brands to which they subscribe. This supports continued investment in membership and rewards programmes, provided they offer clear and accessible value.
For Silverbullet, this creates demand for services and technology that help brands collect, organise and use customer data. The opportunity includes both new programme launches and the replacement of older systems that cannot support detailed personalisation.
Personalisation is now a core part of loyalty strategy. Brands are moving beyond broad customer groups and using individual behaviour, preferences and purchase history to decide what each customer sees.
This requires a reliable customer data infrastructure. Information from different channels must be combined into a usable profile, while customer responses must be fed back into the system. The result is a continuous process in which better data supports more relevant engagement, and further engagement produces more data.
70% of consumers expect financial benefits from a loyalty programme. Discounts and points therefore remain important, but they may not be enough to maintain interest over time.
Brands can improve engagement by offering customers more choice. Rewards may include upgrades, tailored services, exclusive content or the option to support selected causes. A broader proposition can make a programme more useful and reduce the risk that customers lose interest after joining.
Silver Bullet Data Services Group plc (LON:SBDS), ‘Silverbullet’, is the leading Data-Driven Customer Experience (CX) Company, that empowers the world’s leading brands to better understand the data they collect, store, and activate to improve customer experiences.
