The customer loyalty strategies are becoming a good ally at the moment, since, according to these sources, when inflation rises to around 5%, the behavior of the consumers begins to change.
At this point, 88.5% of companies trust that loyalty programs will help them overcome the inflationary crisis, as well as a possible recession, as indicated by the latest study by Antavo “Global Customer Loyalty Report”. Invest in loyalty marketing and in technological solutions to automate and optimize the management of this area is essential, since it encourages consumers to repeat their purchase in 76% of cases, according to the latest study carried out by Tenerity, “The impact of technology on customer loyalty strategies. Therefore, in these moments of uncertainty, the need to retain customers is more accentuated, if possible, than to attract new ones.
To favor customer retention, customization of loyalty strategies is essential. “We are gradually seeing the end of massive strategies and more general campaigns. And this is so because, each time, it is more evident that each client has some needs, and he has them at some moments and not at others. Carrying out a more individualized strategy helps to retain customers who are increasingly demanding and better informed but who, at the same time, are increasingly unfaithful. These hyper-personalized strategies allow you to get closer to consumers and better. Undoubtedly, the future lies in the one to one deal”, comments Eduardo Esparza, VP General Manager Spain and Brazil of Tenerity, an expert company in profitable loyalty.
The positive impact on the income statement
Knowing the customer well, establishing an exhaustive micro-segmentation of these and focusing on the right channels are the three main pillars of a personalization strategy. This is important to give an individualized value that gives the client what he needs, when and how he wants it, demonstrating a high understanding of your individual needs and preferences.
Doing it in the form of refunds, offers or discounts on items is positive. “Although some companies see it as a formula that can reduce their profit margins, the truth is that it does not have to be that way. Putting the customer at the center of decisions reverts to positive results for companies, also from an economic point of view”, points out Eduardo Esparza. In fact, according to an example given by dunnhumby.com a promotion based on a 10% reduction in product pricesshows a positive overall efficiency impact of 7%, which equates to more than 115 million euros in sales.
The latest study carried out by Tenerity, ensures that companies allocate up to 40% of the budget to the technological field focused on having a better knowledge of the client, generating a closer bond with him, increasing satisfaction and improving results in the different indicators aim. For this reason, Tenerity experts talk about the technologies that companies should implement to develop a highly customizable customer experience:
- 60% of users would be willing to give up personal information if that way they achieve more personalized proposals and a closer experience, according to data from Salesforce. For this reason, data collection tools are key to getting to know the customer better and being able to offer value proposals where, when and how the customer needs it. These tools must also guarantee proper use of the data, ensuring their privacy.
- Data analysis will be essential to better understand the customer and offer products and services according to their needs and interests. In fact, this data analysis allows hyper personalize the proposals and, therefore, succeed more in the messages and actions to the client.
- Let the user himself say directly what you want to the company is key. Personalized recommendation tools give the customer a new experience, offering a space in which to express their wants and needs. The strategies of new product lines adapted to the client are gaining strength within the companies. An example is the Nike website where its customers design the shoes they always wanted to buy: Nike By You Custom Shoes. Nike.com
- Communicating or offering different products or services depending on where the user is located is essential to be able to capture their attention. Mobile technologies to take advantage of proximity marketing allow offering individualized actions, adjusting to the user’s needs in the right place and time.
- The ChatGPT based on Artificial Intelligence are gaining pace to maintain conversations between companies and customers. The feeling of closeness, as well as interest and communication between both parties, helps to build customer loyalty, as it is perceived as totally individualized attention and treatment.
- Marketing automation and Artificial Intelligence and Machine Learning technologies make it possible to get to know the customer and generate a close bond with them, adjusting to their needs and, therefore, increasing their satisfaction and experience.
