Making the most of data collection and reporting tools in a loyalty rewards program

Customer loyalty and retention has proven to be an effective strategy to ensure sustainable growth in today’s volatile business environment. However, an effective loyalty and rewards strategy is rooted in the effectual use of data collection and analysis. Let’s take a look at how businesses can make the most of data collection and reporting tools:

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Create customer profiles

Collecting relevant customer data can help you create comprehensive customer profiles that will not only help you understand your target audience better but also bolster your marketing and promotions campaigns. There are several ways to collect critical customer information and data: during the sign-up process, while rewards redemption, feedback, and surveys, or whenever a purchase is made. If possible, integrate this database with a variety of customer contact information, like phone number, email, and social media accounts. Creating holistic customer profiles is the first, and the most critical, step in running a successful Loyalty Rewards Program.

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Tagging and Segmentation

Once you have collected customer information, it is important to classify it according to relevant parameters. Depending on the nature of your business, make sure you segregate your customers using indicators that will help you understand their engagement and response better. In addition to regular yardsticks like age, profession, gender, and address, make sure you tag customers using other business-critical categories as well. These include, but are not restricted to, last purchase, lifetime customer value, reward points earned and redeemed, online or in-store shopper, etc. You should create tags and markers unique to your business in order to effectively organise the customer database.

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Custom reporting and analysis

Collecting and managing customer information will be a futile exercise if you fail to analyse it. In order to understand and anticipate customer expectations, choices, and demand, you need to make sense of the data collected. This can be done by viewing it through a variety of parameters, like customer retention, customer engagement, revenues, customer lifetime value, or a combination of these. Most intelligent Loyalty Rewards Program software solutions, like Loyera, provide robust analytical and reporting tools to create custom reports.

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Targeted Promotions

The entire exercise of data collection, management, and analysis is undertaken to ensure that businesses understand their customers better, and are able to provide relevant and personalised rewards to them. Here’s how it works: once you have created a rich database of customer information and can analyse the same as per your own requirements, you will start identifying proclivity to a product, purchasing frequency and patterns, and overall engagement of a variety of customers. These insights will help you design a targeted rewards strategy and result in better customer retention.

A holistic loyalty management software solution forms the foundation of an effective Loyalty Rewards Program in today’s world. Loyera is one such cloud-based customer loyalty program software that can help you understand and retain shoppers better. The best part is that it also comes with important integrations like POS and E-Commerce. To know more about how your business can benefit from Loyera, get in touch with us today.