5 Ways To Improve Loyalty Marketing Campaigns Using Data Segmentation

Utilizing data segmentation to boost your marketing campaigns is key to standing out amongst your competitors and targeting your customers accurately. The benefit of joining data segmentation with your marketing campaigns is that it helps you organize your customer's preferences and habits based on more personalized details.

By gathering customer data based on their lifestyle, location, and personal preferences, you can create new parameters that will help you market more accurately to your customers and potential customers. Take a look at these 5 different ways to build an effective loyalty marketing campaign using data segmentation.

1. Gather the Right Loyalty Program Metrics 

First and foremost, you need to be sure you are gathering the correct information to get the most useful data. Before your campaign even begins, you need to identify the key performance indicators that are the most important for this campaign. These KPIs can be anything from your brand’s conversion rates, lifetime value, or acquisition costs.

Your KPIs might vary for each campaign because your objectives will change. But having these in your loyalty marketing campaign plan from the beginning will enable you to approach your customers more strategically and successfully. 

2. Use Data Segmentation In A/B Testing 

Randomly trying out ideas and hoping they perform well won’t cut it; for your brand to get the best results from your loyalty marketing campaigns you need to take a data-driven approach when planning.

A/B testing is a great technique that will give you a chance to test out different elements within your campaigns and determine which ones are more effective for your customers.

By tracking how customers respond to the different types of messaging across various touchpoints, you can steadily increase the effectiveness of your loyalty marketing. It’s important to include all customer audiences in your A/B testing to develop a solid understanding of their different wants, needs, and preferences. You can then use that information to target your loyalty messaging even further to specific customer types. 

3. Create Personalized Customer Experiences Within Your Loyalty Program 

Making sure your customers are getting personalized experiences is a crucial part of your customer loyalty programs' marketing campaigns. A customer loyalty platform with data segmentation tools allows you to use loyalty program data to group customers by specific attributes. You can then create specific loyalty program messaging, content, offers, and more for each segment. This increases the likelihood that your content will resonate with each individual and nurture their connection to the brand.

Personalized content from a brand stands out in a customer’s inbox much more than generic messaging. It will make their experience with your company that much more enjoyable and memorable. Be sure that you use defined attributes to make your messaging unique and to ensure your calls-to-action are tailored as well. 

4. Identify Behavioral Triggers 

When used correctly, data segmentation can help you identify the different customer behavioral trends or triggers – insights that enable you to create and run more efficient, successful loyalty marketing campaigns. There are three different types of marketing trigger points: 

• Engagement-based triggers: These triggers are sent out to encourage engagement through making a purchase, signing up for emails or newsletters, or interacting with the website.
• Event-based triggers: These triggers are set off when a birthday, anniversary, or holiday passes by. This is a great way to build an emotional connection between your brand and customers. 
• Behavior-based triggers: This trigger is based on the customer's behaviors through program registration, website activities, or making a purchase. 

Once you have the results from your data you can better understand which behavioral triggers are more likely to lead to higher engagement or more frequent purchases. You can then target these triggers when developing automated workflows or campaigns. 

5. Increase Cross-Selling To Customers 

Cross-selling is a great way to not only boost revenue but also leads to higher customer satisfaction, engagement, and customer lifetime value. If you can accurately recommend products to your customers based on their preferences and past purchases then they are more likely to stick with your brand. Some of the biggest brands use this technique; Amazon attributes 35 percent of its revenue to cross-selling. 

Using data segmentation to group your customer base by certain attributes – such as their past purchases, website views, open emails, etc. – can help you better understand their motivations for buying across certain product or service categories. You can then use these insights to develop campaigns specifically for driving cross-selling among eligible customer groups.

One important thing to remember when implementing cross-selling is to stay in the mind of your customers. If you bombard them with every product or offer they might be interested in under the sun will quickly overwhelm them. It’s better to keep cross-selling simple by only sending them truly relevant messaging and offers. 

In Conclusion

Incorporating data segmentation into your marketing campaign strategy will allow you to open up your ways of approaching your customers and target audiences. By looking at the different segment’s preferences, needs, and behaviors you can easily tailor your messaging and rewards with ease. This will show your customers that you are committed to making their experience the best it can be and that your brand is taking the time to make this program as beneficial to them as possible.

As you continue to narrow down your segments you can better refine your campaigns based on your insights. This will strengthen your customer relationships and drive new business. 

Want to hear how we can help you build a marketing campaign using data segmentation? Reach out to us today!