Why loyalty programs are important

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Add a Comment. But with cookies going away, how can you collect the right data to communicate effectively? As brands prepare for third-party cookies to disappear by the end of , collecting customer data and insights will become even more important. Two types of data will be invaluable to brands: First-party and zero-party. First-party data is data that your company owns and is collected directly from your customers as they interact across your website and various brand channels.

Zero-party data is when customers willingly give brands opinions on various parts of the customer experience.

This data helps brands leverage key customer insights. When a customer becomes a member of your loyalty program, some of the data your brand can collect includes demographic information name, age, gender, location , household information income, marital status, children, home market value , and personal interests hobbies, charitable donor, etc. You can also ask your members to participate in surveys in exchange for points or special promotions.

Armed with this type of customer data, brands can personalize offers, deliver relevant rewards, communicate with members more effectively, and re-engage old customers. As third-party cookies disappear, loyalty programs will become even more critical as brands pursue customer data collection.

Eighty-eight percent of consumers agree that retailers could do more to earn their long-term loyalty. Many loyalty programs have a similar feel because they are one-size-fits-all. The challenge here is these programs tend to offer little in the way of competitive differentiation. You can differentiate your brand through data collected from an engaging, valuable loyalty program.

Listen to your customers and identify their pain points. Let your loyalty program solve those pain points. With third-party data going away for brands in less than two years, the time is now to cultivate customer data from your loyalty program. Brands can do this by offering a differentiated loyalty program. One with a combination of transactional and experiential benefits, along with enticing incentivized engagement, which drives positive customer behavior.

Transactional loyalty is one thing, but experiential loyalty elevates the member experience and creates sustainable emotional connections between brands and consumers. This stands as an excellent opportunity for retailers to differentiate themselves through their respective loyalty programs. For example, Best Buy recently launched Totaltech , a premium loyalty program filled with great benefits and services. This form of customer magnetization is used in industries everywhere, including cannabis.

Another dispensary located in Denver, Colorado, provides a slew of advantages via its rewards program. However, innovation is a driving and necessary force in marketing and customer retention. The idea here is that By providing loyalty bargains and promotions that vary on a daily basis, you incentivize patrons to buy cannabis more frequently.

Birthdays have always been the most relatable reason to celebrate amongst humans since the beginning of time. A few cannabis dispensaries ensure their loyalty program constituents have everything they need for their day of self, thanks to a complimentary gift bestowed to them on their actual birthday. Birthday promotions are a typical style of marketing medium associated with loyalty programs. They are simply about building rapport with patrons.