Using the data to bring up the customer loyalty

As part of the digital media marketing seminar course, we have a marketing industry professional speaker every week. This week we listened to Lia Grimberg. So, who is Lia? she is the divisional vice-president, customer marketing, for Hudson’s Bay Company. Previously Lia was the senior director of loyalty and analytics at Loblaw Companies Limited. Lia is a data-driven marketing expert that translates customer needs into 1:1 personalized marketing communication that drives an improved ROI. She has almost 20 years of experience, both practical and theoretical, client and consulting, in the retail and financial services industries. In the lecture, she spoke about “Customer Loyalty and Insights.” And let’s go and learn something from what she said.

Data-driven marketing is a strategy for improving brand communications using customer data. Customers' wants, desires, and future behaviours are predicted via data-driven marketing. Such knowledge aids in the development of tailored marketing strategies that maximize return on investment (ROI) and increase customer loyalty.

DATA IS IMPORTANT AT AN AGGREGATE AND CUSTOMER LEVEL

Data can be collected in a variety of ways:

- First-party customer data: Contact data, transaction data, web browsing, loyalty data, and other data such as service/ repair, delivery…

- Second-party and third-party data: Partnership data, aggregate data (sociographic, psychographic), audience data (likes, shares, predictive models)...

Data means trust. 77% of Canadians have some concern about their online privacy, and only 40% of consumers state they feel comfortable with data exchanges, also 36% of consumers say that, as long as data is not abused, privacy is less of an issue than it used to be.

So, what is customer loyalty? it is a strategy that focuses on maintaining and expanding existing consumers by offering rewards such as free gifts, discounts, and/or exclusive access. Customers are rewarded for their continuing interaction with and loyalty to the company through loyalty marketing campaigns.

Loyal customers demonstrate their loyalty through certain behaviours that benefit your organization. These behaviours include resisting offers from the competition, recommending you to others, and working with you when they experience a service breakdown. The payoff is described in the four R’s:

■ Recognition – Determine your top customers, acknowledge and keep them, and learn about your next best customers so you may go up to the best group.

■ Reward – Loyalty programmes offer a helpful reward system that may be used to motivate desired behaviour, and benefits can be both tangible and intangible.

■ Relevance – Data about customer loyalty can be used to personalize products, offers, and communications.

■ Relationship – Long-term partnerships require a willingness to forego other "promotional" options. The company keeps loyal clients for a longer period of time.

The data is very important to know customer loyalty. The date is the mechanism of the marketing that moves the marketing forward, by getting the data we will determine the right audience and save the budget from losing and create customer loyalty. Loyalty causes us to trust, trust causes us to remain, staying causes us to love, and love causes us to hope.

By: Mohammed Bahudailah