5 Steps to Delivering a Better Customer Experience
According to McKinsey & Company, experience-led growth leaders prioritize investments in new offerings and experiences driven by customer experience goals. Leveraging loyalty data informs these decisions, enabling brands to not only improve customer experiences but also monetize data responsibly.
1. Know your customers
McKinsey & Company reports growth outperformers are much more likely to know their customers personally. Your loyalty program gives you endless opportunities to ask members directly about their preferences, values, lifestyle and more—collecting unique zero- and first-party data with consent at scale.
Big Hammer Wines uses a product recommendation quiz to personalize its offering and segment its audience, collecting email addresses in exchange for a $50 discount on orders over $150.
2. Personalize and act on customer data in real time
Progressive profiling allows you to add unlimited attributes to member profiles that you can use to personalize content, offers and rewards. Loyalty platform functionality, such as advanced segmentation, makes it easy to create segments based on any combination of attributes related to your customer experience goals.
3. Increase engagement
Modern loyalty solutions offer a wide range of engagement options, including social loyalty, gamification, referral programs, ratings and reviews, and more. These make your customers’ experiences more fun and
rewarding, especially if you incentivize participation.
Fully engaged customers represent a 23% premium in terms of share of wallet, profitability, revenue and relationship growth compared to the average customer.
4. Add unique value that goes beyond transactions
Your loyalty program is the perfect way to add value between and beyond purchases, creating emotional bonds. Leveraging robust loyalty data and today’s loyalty technology, you can add value through exclusivity, partnerships, early access, subscriptions, convenience—even simple recognition.
of customers in loyalty programs say they have better experiences with brands because their connection transcends the transactional.
Mathis Home’s subscription loyalty program gives members exclusive pricing, free delivery and loyalty points for just $139 per year. The program has three levels based on spend—Shopper, Designer and VIP. Higher levels get additional benefits, such as early access to sales, extra points earning days, extra points on birthdays and special offers on luxury brands.
5. Deliver a seamless, consistent omnichannel experience
The right loyalty platform can be the glue that connects the dots, so you can recognize and reward customers no matter where they engage and shop, plus redeem loyalty rewards through any channel. And integrations push data across your entire ecosystem, enabling personalization at every touchpoint.
Purchase frequency is 250% higher on omnichannel vs. single channel and the average order value is 13% more per order.
6. Drive growth
Forbes reports that loyalty programs are proven to increase customer lifetime value by up to 30% by increasing frequency and spend per visit and winning back lost customers. And they’re a more cost-effective way to gain new customers through advocacy.
Existing customers buy 90% more frequently, spend 60% more per transaction, and bring in 23% more total revenue and profitability than newer customers.
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Ready to explore how loyalty can get you closer to your CX vision?