FOUR ways maps enable you to create a customer loyalty scheme to maximise profits and improve customer experience.
A PwC report entitled 'Loyalty analytics exposed: What every programme manager needs to know' found that rewarding the top quartile of loyal customers may account for 60% of profits. The key to a successful rewards strategy starts with understanding your data. Reward schemes only work if they are targeted correctly. But how do you get the right rewards to the right people?
Here are 4 ways that maps can uniquely help to create the perfect loyalty scheme for your brand:
1. Know your customer
What makes them loyal? Is it their demographics? Where they live? Where they work? What makes them redeem that voucher, collect that free gift or claim that money off?
Take a deep dive into your existing loyalty data to truly understand what is working or not. Visualising your data on a map will highlight new insights about what is working when, where, and why. For example, layer all your voucher data on a map to show:
Where the vouchers were redeemed
The voucher value
How much extra was spent on top of the voucher amount
The day/time they were spent
Now it's much easier to see patterns in the underlying factors that have contributed to the sales increases at your most successful stores.
On the same map you can add demographic data to explore the relationships between voucher redemptions and the local population. Look at where your customers live or work and where they redeemed the voucher; is there an increase in redemption rates from people that live near your store?
2. Understand market dynamics
Although you are focusing on your customer loyalty, it pays to spend some time understanding what your competitors are doing as it is likely that they will be targeting your customers too. There is a lot you can do with the information freely available.
For example, if your competitor has an offer online with a money-off voucher that can only be spent in-store, you can easily plot their stores on a map and look at the areas around the stores to see who they are likely to attract. It’s a similar exercise to the one above. Use drive-time analysis to see all the people that live/work within 15 minutes drive from the competitor’s stores for example. Are these the same people that are in your target area? If so, how do you make your promotion more compelling and secure those customers?
3. Make it personal
A recent customer loyalty whitepaper from Vouchershop reveals that demographic factors have a major impact on success. Gift cards were found to be more attractive to younger consumers, whereas cashback a more enticing reward option for those over the age of 40. Can you find similar relationships in your data? When you analyse your demographic data try highlighting the age or gender of the customer to see if you get different results.
Do you use a loyalty app? Or direct mail? Or email? Or all three?
Plot the sales per voucher based on the outreach to identify which one is working best with which demographic segment. Starbucks use maps to highlight areas of high smartphone ownership. By adding their store locations to the map they identify which stores are located in the areas of high smartphone usage. Their smartphone app is most likely to be utilised in these areas. They placed adverts for the app in these stores to drive an increase in users of the app.
4. Now do it again
Having done all this analysis, identified your target market, understood what rewards they like and how they like to be approached, it is simple to replicate success. Use maps to find more areas that have the same characteristics as the ones you have already identified. Find more lovers of your brand and turn them into loyal customers...fast!
Why not give it a go? Take the trial, load your data and follow these simple steps.