How to differentiate yourself with a personalised customer experience

Retailers everywhere are struggling to find ways to differentiate themselves from the competition. Why? Because they’re lacking a personalised customer experience.

All you have to do is walk through the underground station at South Kensington, London to see this:

differentiate loyalty program

Three different clothing retailers…three almost identical adverts.

This is exactly the same with loyalty programs, where ecommerce stores are offering almost identical loyalty programs.

Every store now understands the benefits of a customer loyalty program and they’re all vying for customers’ attention.

The aim of a loyalty program should be to drive commerce – but you’re only going to do this if you find a way to stand out from the crowd.

In this blog post, we’re going to cover four ways you can differentiate yourself from your competition by using your loyalty program to create a personalised customer experience. These ways are:

  • Mobile
  • Tiered system
  • Social
  • Don’t just reward money spent

 

Mobile

It goes without saying that mobile commerce is taking over. People are attached to their phones and check them over 150 times a day. So if your customers are on their mobiles, why aren’t you finding ways to attract them there.

Sephora is a great company who understand the idea of mobile first.

Their beauty insider app allows for a seamless omnichannel experience where you can browse online, check store selection and pick up in store, all while collecting points.

differentiate loyalty program

Your customers are connected to their phones, so if you really want to differentiate yourself, use your loyalty program to go where they go most often.

Tiered system

A clever way to differentiate yourself is by using a tiered system. Consumers are getting tired of simple “here’s money off for getting 100 points”. It’s generic and probably doesn’t mean anything to the customer.

Tiered systems encourage customers to set their own personal targets. It also encourages them to spend more money.

As many as 50% of customers said they have or would change their behavior to reach a higher tier.

MAC Select, a cosmetics brand have really mastered the tiered system, offering different rewards for people once they’ve spent a certain amount of money the previous year.

differentiate loyalty program

Social

If you want to differentiate yourself using your loyalty program, you need to get people actively involved in it.

They need to be excited by it, and actively want to use it.

Use the power of social. Social media gets people talking, and you want them to be talking about your loyalty program.

For example, offer people points in exchange for sharing your products on their social channels, or referring a friend.

loyalty program drive revenue

Don’t let customer loyalty be a solitude game, get people involved and encourage them to talk about your loyalty program and the rewards they’ve received. Most importantly, give them a platform to do so.

Don’t just reward money spent

People on average are part of 14 loyalty programs but only engage with around 6.7 of them.

This means they ignore almost half of the loyalty programs they’re part of. You don’t want to fall into that category, so do more than just reward your customers for money spent.

If you only reward money spent, half your customers won’t engage with it.

Building loyalty doesn’t happen overnight and customers don’t just become loyal once you create a loyalty program.

Make people feel unique – loyalty should feel like an exclusive club. Take Nespresso for example. The customer service is excellent, but the experience for members is second to none.

differentiate loyalty program

Remember consumers’ habits and needs change all the time and your loyalty program should change to reflect that.

Offer personalised rewards based on a customers’ previous purchase history.

The best loyalty programs are the ones that make the customer feel valued and special.

You can do this in many ways, like sending a birthday message out when it’s their birthday.screen-shot-2017-01-15-at-06-57-11

The personalised customer experience

If you want a successful loyalty program and to deliver a personalised customer experience, you need to nail three things:

  1. Understanding your customers
  2. Segmenting your customers into groups dependent on their likes, dislikes or previous purchase history
  3. Personalising rewards based on those segments, or even based on specific individuals

If you’re connecting with your customers on an emotional level and creating a memorable experience, your loyalty program will stand out. Customers will engage with it and drive commerce.

 

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