For loyalty programs, collecting data to gain a deeper understanding of customer behaviour is one of the primary goals of a program.
Using the data collected for personalised communication in order to change a behaviour, is also a goal of a program.
The four-pillars of loyalty program personalisation
In the For Love or MoneyTM 2020 research, we defined loyalty program personalisation within the context of ‘communications’ from loyalty programs into the 4M’s with the customer voice in mind:
The 4M’s = Medium + Message + Member + Moment
The medium: “Communicating with me through my preferred channel eg email vs SMS vs APP message”
The message: “Communicating with me in a personal and relevant way (the message, offers and rewards are relevant to me)”
The member: “Communicating with me in a way that is relevant to me and my lifestyle (they understand me)
The moment: “Communicating with me at the right time/right place”
How is loyalty program personalisation performing?
With the above in mind, in the latest For Love or MoneyTM 2020 we wanted to set a benchmark on how loyalty program personalisation was performing.
We asked members of loyalty programs if they believe loyalty programs are getting better at each of the 4 M’s.
The results were
There is room for improvement
With the above benchmark set in 2020, we now have a base from which to improve and there is certainly room for improvement.
There were some significant differences in the results when we went deeper on the generations (Gen Z, Gen Y, Gen X and Baby Boomers), the results of which are available in the full For Love or MoneyTM 2020 report.
The sum of the parts delivers the ‘personal’ into personalisation
The optimum outcome for personalistion is when ALL 4M’s are in sync so…
“the communication understands the member and their lifestyle, the message is personal and relevant (including offer), delivered through their preferred channel at the right time and place”.
So, the question for loyalty program managers is –
How is YOUR loyalty program personalisation performing?
Have a happy loyalty day!