Personalisation Powers Loyalty: Tech Investments transform Loyalty
In the dynamic world of data-driven loyalty marketing, personalisation stands as a pivotal factor in cultivating customer loyalty. Investing in marketing technology supports marketing teams to execute their 1:1 loyalty campaigns at scale, enhancing customers’ experiences and driving loyalty outcomes.
IVE are often asked to share how we are seeing 1:1 personalisation drive ROI outcomes, what benefits clients can expect to see from delivering better personalisation across touchpoints, and what metrics (if any) can be relied upon to inform business cases to make further investments in marketing technology.
Salesforce’s most recent “State of Marketing” report (released June 2024) highlights various trends and insights that loyalty marketers can leverage to support business cases for these investments.
This article explores some of the key customer behavior and 1:1 personalisation trends which the IVE team see impacted by these technology investments, and how Salesforce’s own research quantifies consumers’ expectations and loyalty outcomes which organisation can be guided by.
Key trends in consumer behaviour and 1:1 personalisation
- Personalised experiences create loyalty
- Personalisation turns shoppers into loyal advocates
- Delivering messages that resonate has never been more critical
- Tailoring for 1:1 loyalty
- The cost of ignoring personalisation is significant
Personalised experiences create loyalty
Personalised experiences are the cornerstone of customer loyalty. According to Salesforce’s report, 73% of customers expect companies to understand their unique needs and expectations. Leveraging tools such as marketing automation platforms, loyalty marketers can create tailored experiences which resonate with individual loyalty members, fostering repeat business. The key consumer trend which loyalty marketers need to be aware of is the expectation for personalised interactions from brands is significant and ever-growing. Brands need to respond accordingly.
Personalisation turns shoppers into loyal advocates
To transform shoppers into loyal advocates, it’s crucial to understand their behavior and preferences, and use these in your 1:1 communication across your key customer touchpoints to ensure you’re delivering a consistent experience. Salesforce’s report notes that the best performing brands fully personalise across an average of six touchpoint channels, compared to underperforming brands who only personalise across three. Key to this cross-channel capability is a centralised view of your customer, supported by technology such as Customer Data Platforms (CDPs) which marketers can use track customer interactions across multiple touchpoints and create personalised campaigns to encourage advocacy.
Delivering messages that resonate has never been more critical
Effective messaging is critical for building customer loyalty. Data-driven marketers are turning to AI to assist in using all of their data to guide them on their next most opportunistic campaign message with each individual customer. According to Salesforce, high performers are 2.5 times more likely to have fully implemented AI within their operations, enhancing their ability to deliver personalized messages. Customer data platforms enable marketers to segment audiences more precisely and craft messages that resonate on a personal level, driving engagement and loyalty. With the growth of GenAI as well, many new features are beginning to find their way into martech platforms which loyalty marketers have at their disposal.
Tailoring for 1:1 loyalty
Tailoring marketing experiences to individual customers can significantly boost loyalty. Marketing technology investments can enable loyalty marketers to move from mass campaigns to highly targeted, personalised loyalty experience strategies. This is particularly true when communicating loyalty offers within channels seen as more personal, such as test and in-app messaging. Salesforce’s report indicates that 81% of marketers say mobile messaging will be a bigger priority in the coming year, reflecting the growing importance of personalised communication channels. Marketing automation tools facilitate the delivery of tailored content across these channels, reinforcing 1:1 customer loyalty.
Customers yearn for personalisation
Customers have a strong desire for personalised interactions. With the proliferation of data-driven campaigns and ease of access to marketing technology, consumer awareness of “the art of the possible” is very real. They know what data they are sharing with the brand and expect it to be used to improve their experience across touchpoints. Salesforce’s research reveals that 84% of customers say being treated like a person, not a number, is very important to winning their loyalty. Website personalisation platforms can help meet these expectations by customsing user experiences in real-time based on individual preferences and behaviors. This trend highlights the importance of personalised content in retaining customer loyalty.
The cost of ignoring personalisation is significant
Ignoring personalisation can have detrimental effects on consumer loyalty. Salesforce’s report quantifies that 52% of customers are likely to switch brands if a company does not personalise communications. Marketing automation tools can prevent customer churn by ensuring messages and offers are relevant and timely. The key behavior here is the propensity for customers to switch brands when personalisation is lacking.
In summary, these insights from Salesforce’s “State of Marketing” report underscore the importance of personalisation in today’s loyalty marketing landscape, providing a strong foundation for loyalty marketers to advocate for technological investments that yield better business outcomes and ROI through enhanced 1:1 personalisation within their loyalty programs.
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