Brand loyalty through personalisation


Personalisation is key to gaining brand loyalty and a priority for brands and is being pursued across every sector. The development of new technologies has led to the emergence of a savvier, more demanding consumer. Personalisation is now an obligatory tool for brands of all industries and sizes, as opposed to something that was once used to gain competitive advantage.

Personalisation plays a pivotal role in customer retention and is the heart and soul of many customer loyalty schemes. When it comes to customer incentives, it is becoming increasingly apparent that a one-size-fits-all model won’t provide all companies with the same kind of return, underlying the importance of utilising the principle of personalisation in this area.

Retaining existing customers is a key objective of  brand loyalty schemes, however the personalisation of these schemes can allow for so much more. Brands can obtain in-depth customer insight as well as increase their consumers’ spend frequency.

Founder of the Air Miles and Nectar loyalty schemes, Sir Keith Mills is well-accustomed to using data to get closer to consumers. In an era where personalisation take centre-stage, Mills believes the answer lies in using data-driven insights to replicate the one-to-one experience that shopkeepers offered their customers in the past.

Online fashion giant ASOS recently rebooted their loyalty scheme in the shape of a tier system, giving their customers access to different levels of rewards in relation to how much they engage with the brand. Shoppers who spend more on the brand are boosted up throughout the levels, receiving extra and more personal perks on higher levels.

Meanwhile, telecoms brand O2 is using predictive analytics to get a better idea of consumer behaviour, in order to provide personalised rewards for their customers.

“For some, the £1 lunch on Mondays is most popular, for others it’s access to gigs,” explains marketing and consumer director Nina Bibby. “At the end of last year, we saw a tenfold uplift in conversion through better use of customer data.”

Whatever the approach, the key to success is an intelligent use of data. Mills explains the advantage of today’s landscape:

“When I came into marketing we didn’t know how profitable our customers were, but now you can look at any customer in a major loyalty programme and determine what their profitability is, and whether you are getting more or less of their business. That’s an incredibly unique position to be in.”

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By |2018-08-23T11:41:38+01:006th April 2017|Brand Loyalty, Data, Marketing Strategy, Personalisation|Comments Off on Brand loyalty through personalisation
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