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Creating A Customer Engagement Strategy
For Your Loyalty Program

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3 min read

How Loyalty Data Helps Marketers Make Better Predictions

How Loyalty Data Helps Marketers Make Better Predictions

Gathering and analyzing your program's metrics and data is key to making accurate predictions to grow your program and your customer’s experience. If you are not using your loyalty data to your advantage then you are making your marketing decisions on guesses when it comes to what will take your loyalty program to the next level. If you are wondering just how helpful loyalty data is to marketers, take a look at some of the top ways analyzing and using this data will help your team market better to your customers. 


Loyalty data can help marketers…..


…. Predict Customer Behavior 

Gathering loyalty data lets brands have a deeper insight and understanding into their customers buying habits and behaviors. When you are able to track and monitor what products/services customers often purchase and at what frequency, you are able to make more accurate predictions for their future behaviors. It’s important that brand’s are aware of what type of marketing and content will influence their customers to make a purchase and what doesn’t draw engagement. Once you are able to get a clear understanding of your customers patterns and trends then it’s much easier to predict their behavior to new products and launches. 


…. Better Segment And Personalize Customer Marketing 

One of the best ways to use loyalty data your program gathers is through segmentation and personalization. This allows you to create more personalized marketing collateral and campaigns that will stand out to different customer segments. Without using data, it is much harder to know how to segment your customers accurately and how to make their experience unique to your brand.

Loyalty data will allow for more accurate predictions on how specific segments will respond to different marketing campaigns rather than just assuming you know how your customers will respond. Not only will you have a deeper understanding of your customer as a whole, you can learn where to put your marketing efforts to get the most ROI for each campaign. 


…. Prevent Customer Churn

Every brand works hard to avoid customer churn at all costs, and using loyalty data to your advantage is a great way to combat that churn. By monitoring customer behavioral and engagement data you are able to identify which customers are at a risk of ending their relationship with your brand and get ahead of that through targeted outreach and personalized communication.

It is much more expensive to obtain new customers than it is to retain them, so it's crucial to keep the churn to a low percentage. When you can analyze and understand their behavior you are able to actively target them with rewards and incentives that you know will boost their engagement and get them excited about your brand again. By utilizing the segmentation and personalization we mentioned before you can stop the customer church and begin the retention efforts before it is too late! 


…. Calculate Customer Lifetime Value (CLV)

Knowing how to create lasting and engaging relationships with your customers is key to a prosperous loyalty program. And the best way to calculate your CLV is through your program’s loyalty data. By monitoring factors such as purchase history, average order value, and customer retention rates, this can give you a better idea of how to predict a customers lifetime value and the best way to market towards them. Calculating CLV provides your brand with a number of other important factors such as:

  • How much money to invest in attracting new customers and retaining existing
  • The profitability of the company and an idea of how much to invest 
  • Helps you determine what areas of the company needs extra attention and where you can cut back on spending. 


…. Predict Market Trends 

What company doesn’t want to get ahead of the trends and get their brand out there before their competitors? When you begin gathering customer loyalty data, you get a deeper look into their habits and what makes them make a purchase and what causes them to hesitate. You can see what time of year a customer is more likely to make larger or more frequent purchases and when they are less likely to make any purchase at all.


Loyalty data also tells you if your customer is more of a seasonal shopper which allows you to prepare before that season approaches. Trends are always fluctuating and it’s important to stay up to date with which ones peak your customers interest and which ones they are less interested in. Get ahead of your competitors and use your loyalty data to keep your customers and potential customers using your products and services. 

There is no reason why your brand should not be gathering and monitoring your loyalty data. This information allows you to make decisions based on statistics and data straight from your customers. You are able to study what makes your customers excited and engaged and in turn, you are able to market towards them more accurately and effectively. This will lead to more powerful and personalized marketing communications, increased ROI, and greater customer engagement- who doesn’t want that!