Salesforce Loyalty Management is an innovative solution that will find its place in the coming years. The numbers speak volumes: according to Statista, the spending on loyalty programs was $5.57 billion in 2022, with an average annual growth rate of 23.5% projected to propel this figure to a remarkable $24 billion by 2029.
Yet, despite this substantial financial commitment, a sobering statistic reveals that a staggering 77% of rewards-based loyalty programs fail within their first two years. It’s a stark reminder that it’s not enough to implement a loyalty program; success requires a strategic, data-driven, customer-centric approach.
Let’s learn how to do it using Salesforce’s features.
Start by Collecting Data from Every Touchpoint
Loyalty programs have become an indispensable tool, providing a strategic path to fostering long-term customer relationships and driving sustainable growth. However, the road to loyalty program success is paved with data – and lots of it.
The cornerstone of any successful loyalty management strategy is gathering and harnessing the right data. By doing so, companies can gain invaluable insights into customer preferences, behaviors, and pain points so they can tailor their offers and experiences to meet the unique needs of their target audience.
Salesforce, the world’s best CRM platform, provides a robust set of tools and capabilities that enable companies to streamline their data collection and analysis process.
At the heart of Salesforce’s loyalty management capabilities lies its ability to capture and consolidate data from various touchpoints across the customer journey. From initial inquiries and purchases to support interactions and feedback, every interaction is meticulously recorded, providing a comprehensive view of the customer experience.
Data can be of different types:
- Zero-party data: preferences and interests (user likes, dislikes, hobbies, and personal preferences), purchase intent (e.g., wishlist items), survey responses, reviews, ratings, comments, email subscriptions, event registrations, location data, etc.
- First-party data: customer registration information, purchase history, website analytics, app usage data, social media interactions, customer service interactions, etc.
- Second-party data: data-sharing agreements, co-branding initiatives, publisher/advertiser data sharing, and social media collaborations, etc.
- Third-party data from external vendors: demographic data, psychographic data, behavioral data, geolocation data, social media data, consumer purchase data, market research data, etc.
Segment Your Customers with Precision
Customer segmentation is a key component of loyalty management. Companies can tailor programs and offers to specific groups of customers based on common characteristics or behaviors.
Here are some key strategies for customer segmentation in loyalty management, and how Salesforce can assist:
- Demographic Segmentation: Salesforce makes it possible to capture and analyze customer demographics (age, gender, income level, location, etc.) through its CRM capabilities, making it easier to segment customers accordingly.
- Behavioral Segmentation: Salesforce powerful analytics tools can analyze customer transaction data (frequency of purchases, average order value, product preferences, etc.) and identify behavioral patterns for effective segmentation.
- Value-based Segmentation: Salesforce Einstein Analytics can calculate customer lifetime value using data from various sources, enabling value-based segmentation.
- Engagement-based Segmentation: Salesforce Marketing Cloud can track customer engagement across multiple channels (website visits, email opens, social media interactions, etc. to enhance loyalty experiences).
- Psychographic Segmentation: Salesforce integration capabilities allow importing psychographic data (lifestyle, interests, values, and personality traits) from third-party sources for segmentation purposes.
Salesforce provides companies with robust data management, analytics, and automation capabilities that streamline the customer segmentation process for loyalty management. Its 360-degree view of the customer enables you to capture and analyze data from multiple touchpoints, making it easier to identify segments and develop targeted loyalty strategies.
Craft Loyalty Programs that Resonate Across Customer Segments
You can customize the rewards system in a loyalty management program to appeal to different customer groups based on factors such as product/service usage, purchase frequency, spending patterns, brand advocacy, and feedback. Here are some examples of how you can customize the rewards system:
- Product/Service Usage: For customers who frequently use a specific product or service, offer rewards tailored to that usage, such as discounts, free upgrades, or exclusive access to new features.
Example: A streaming service might offer bonus loyalty points or a free month of premium subscription to customers who consistently watch a certain genre or type of content.
- Purchase Frequency: Incentivize frequent purchases by offering accelerated point-earning rates or bonus rewards for customers who make repeat purchases within a specific timeframe.
Example: A retail store might offer double points for every purchase made within a 30-day period as a promotion to encourage customer loyalty and shopping more often.
- Spending Patterns: Reward high-spenders with exclusive perks, such as early access to sales, personalized shopping experiences, or invitations to VIP events.
Example:A luxury hotel chain might offer complimentary room upgrades, spa credits, or private lounge access to customers who spend above a certain threshold each year.
- Brand Advocacy: Recognize and reward customers who actively promote your brand through referrals, social media engagement, or positive reviews.
Example: A software company might offer bonus points or discounts to customers who refer new users or leave positive reviews on popular platforms.
- Feedback: Incentivize customers to provide feedback by offering rewards for completing surveys or participating in focus groups.
Example: A restaurant chain could offer a free appetizer or dessert to customers who complete a post-dinner survey to gather valuable insights for improving the customer experience.
By segmenting your customer base on these factors and tailoring rewards accordingly, you can create a more personalized and engaging loyalty program that resonates with different groups of customers.
Boost Retention Rates with Loyalty Management
With countless options at their fingertips, customers are more likely to switch allegiances at the slightest hint of dissatisfaction. But by harnessing the power of loyalty management and the robust capabilities of the Salesforce platform, companies can strengthen customer relationships and dramatically improve retention rates.
Personalization
The Salesforce Customer 360 platform does just that. With this wealth of insight, companies can create highly personalized loyalty programs, rewards, and communications that resonate with their target audience: From customized product recommendations to exclusive offers and personalized messaging.
Predictive Analytics
Salesforce Einstein Analytics uses advanced machine learning and predictive modeling to identify patterns and trends that may indicate potential churn risk. You can take action to retain customers and prevent them from exploring alternatives.
Omnichannel Engagement
Salesforce omnichannel capabilities enable businesses to deliver consistent and cohesive experiences, from in-store interactions to online platforms and mobile apps.
Automated Workflows
Salesforce automation capabilities streamline multiple aspects of loyalty program management, from enrollment and redemption to communications and campaign execution.
Loyalty Management Leveled Up: A Holistic Journey Beyond Transactions
The more ways you give customers to participate in your loyalty program, the more comprehensive customer data you can collect for effective loyalty management. And that data? It’s gold! It’s the foundation for creating truly personalized and engaging experiences that make your customers feel like you really understand them.
But the work doesn’t stop there. It’s an ongoing journey. You need to continuously monitor all of your customers’ activities, including their buying habits, referrals, and social media interactions. This wealth of information allows you to measure the success of your program, identify areas for improvement, and tailor your offerings to your customers’ ever-evolving preferences and behaviors.
We live in a world where data matters, and it’s important to manage loyalty well. It is a holistic endeavor that requires a deep, intimate understanding of what your customers really need, want, and aspire to. Get it right, and you will be well on your way to building unbreakable bonds with your loyal fan base.
