Episode Transcript
[00:00:00] Welcome to this episode of loyalty discussions where we'll be discussing personalization that leads to customer loyalty with plenty of examples and strategies.
[00:00:11] As a consumer, it can feel like most companies know everything about you and what you like.
[00:00:17] Brands are becoming more aware of the effects of personalized communications and their potential to increase sales and brand loyalty.
[00:00:27] Research shows that personalization not only works, but that customers actually want and expect it.
[00:00:35] According to Accenture, 81% of consumers want brands to get to know them and understand their wants and needs.
[00:00:44] Personalised marketing is used to engage customers at an individual level. This makes them feel like brands are tuned into their unique preferences, which in turn increases emotional loyalty by establishing a relationship of trust and appreciation.
[00:01:03] Customers who receive personalised offers ultimately end up making more purchases on top of that, a survey by bond brand loyalty found that businesses that personalise see an increase in customer satisfaction.
[00:01:19] But how exactly can you use personalisation in your business?
[00:01:26] First, consider collecting data through a loyalty program.
[00:01:30] Data is the life force of personalisation and a loyalty program gives you the foundation you need to collect this insightful information.
[00:01:39] Loyalty programs can collect information about customer purchasing habits, preferences and behaviors so you can strategically target them.
[00:01:49] Collecting customer data through a loyalty program also allows you to deliver the right messages at the right time. Through the right channels, relevant messages are more likely to engage readers and persuade them to take action.
[00:02:07] Purchase data can allow you to create individualized recommendations for your customer.
[00:02:13] This can influence them to buy products that they didn't even realize they needed.
[00:02:19] You can add a level of personalization to your customers experience by offering them rewards that you know they will want and use. This allows your customers to interact with your brand on their terms and makes it more likely for them to stay engaged with and loyal to your brand.
[00:02:38] Let's take a look at some personalisation strategy examples to learn from.
[00:02:45] Amazon's recommendation algorithm is a strong example of personalization.
[00:02:50] The website intelligently creates tailored customer experiences by suggesting products based on previous buying habits.
[00:02:59] They do this by bundling products that are frequently bought together and even sharing what other customers who bought this item also bought.
[00:03:08] Such a strategy makes the customer buying experience as easy as possible by sparing customers from having to search the whole site to find relevant items.
[00:03:19] In this way, personalisation is a key strategy to make your customers purchasing journey easier.
[00:03:28] Do you remember over a decade ago when Coca Cola launched its famous Share a Coke campaign, which still serves as an original and effective example of personalised marketing?
[00:03:40] The campaign replaced the classic drinks logo with customer names, encouraging them to buy drinks for themselves. Friends and family and shared them on social media.
[00:03:51] Coca Cola revealed that the campaign caused a rise in sales for the first time in over a decade. In this way, personalization can make marketing campaigns more effective by making them shareable.
[00:04:06] Nike allows its members to scan a QR code to check in when they visit a Nike shop to receive an ultra personalized shopping experience.
[00:04:15] Their personalised loyalty program gathers data about their customers such as clothing size, sports preferences and location to give them expert recommendations.
[00:04:26] Customers can also reserve shoes online to try on in store. At a later point, items are placed in a locker with the persons name, on which they can then unlock with their phones once in store.
[00:04:39] In this way, data and personalization work together to connect the digital and in store shopping experience popular music platform Spotify personalizes user experience straight from the homepage. When new users sign up, they are asked to select some of their favorite artists and genres. Spotify then begins to curate playlists and suggestions based on each customer's listening preferences.
[00:05:08] But that's only the start.
[00:05:10] The app also intelligently creates additional playlists, the more users interact with it.
[00:05:17] Spotify editors put together specific catalogues based on certain moods or moments that are tailored to each listener.
[00:05:27] The app also intelligently creates additional playlists the more users interact with it.
[00:05:34] Spotify editors put together specific catalogues based on certain moods or moments that are tailored to each listener.
[00:05:44] Oscar Stahl, VP of personalization at Spotify, says that playlists, like songs to sing in the car might not look personalised, but they are. Each person sees music that fits that categorization, but that is also in line with what they actually enjoy listening to. There isnt just one Spotify experience, theres more like 365 million different experiences, one for each user thats deeply personalised to their wants and needs.
[00:06:13] The brand also creates highly personalized marketing campaigns to show its users their highlights of the year. Released each December for the past five years, the campaign compiles visual data for each listener's activity and prompts them to share it on social media.
[00:06:32] Integrating personalisation into their app has allowed Spotify to increase the likelihood of users interacting with the brand because it ensures that there is always more relevant content for them to discover. The brand's engineers understood that users will enjoy Spotify the most if they can find more to listen to, but most listeners don't have the time to seek new content on their own. As a result, Spotify uses machine learning technology to better understand how customers relate to content, giving them more personalized recommendations every day.
[00:07:08] In this way, personalisation can be used to keep your customers engaged by using their data to suggest more relevant content that aligns with their interests.
[00:07:19] So how can you achieve this level of personalisation in your business? To get started with personalization, you need to begin with customer data.
[00:07:28] Having a single system that creates a 360 view of each customer will allow you to understand more about their demographics, transactional behaviour, engagement stats, personal preferences and more. A loyalty program is the ideal starting point for this. You can also use AI to do most of the legwork. Just as Amazon and Spotify use machine learning to create recommendations, AI modelling can be used in loyalty programs to help you find insights within your customer database.
[00:08:02] Remember, consumers are now expecting brands to personalize their experiences. In return. Personalization allows businesses to get a deeper understanding of their customers, which can lead to a greater relationship with them.
[00:08:16] This can drive an increase in purchases, engagement and ultimately brand loyalty.
[00:08:23] Big brands are successfully using personalisation to improve shopping experiences and increase customer engagement.
[00:08:31] We hope you found some inspiration within these examples.
[00:08:35] If you're interested in creating personalized experiences for your customers, start with a loyalty program, head to our website or get in touch with one of our loyalty experts to find out how we can help.
