Customer experience is increasingly becoming a key priority for businesses that want to differentiate themselves from the competition, and the most successful ones are personalizing that experience through effective use of data analytics and insights. At the same time, customers have increasingly high expectations of brands regarding the value they’re getting from sharing their data.
According to the 2016 Aimia Loyalty Lens, 42 per cent of Canadian consumers view their data as highly valuable, 62 per cent expect better experiences with companies who they know hold their data and 45 per cent get annoyed when companies don’t use what they know about them to offer better products and services.
Clearly, Canadians expect a better experience in exchange for their data. They not only want programs that reflect their values, they also want to be treated as individuals and be offered benefits that respect their individuality.
“In order to meet these expectations, you need to have the right data about each member and what they like, and then be able to sift through that data to make sense of it all and deliver a truly personal experience,” said Kevin O’Brien, Chief Client Officer, Aeroplan. “Loyalty programs are a great way to help companies get to know their customers better.
Better Data Means Better Personalization
For a coalition program like Aeroplan, with its wide variety of retailers and partners where members can collect and redeem miles, having as many places as possible for people to do business for many different goods and services provides access to a large pool of customer data. This data then guides the design and development of personalized offers and experiences for members.
The New Battleground
Delivering experience has become the new battleground in the fight to attract and retain customers and continues to be one of the most important things members look for in a loyalty program. O’Brien says customers expect the retailers and loyalty rewards programs with which they share that data to connect the dots.
“Our survey of more than 15,000 consumers in Canada, the U.S. and seven other countries found that most of them expect better experiences with the companies they have shared their data with,” he said.
Delivering experience is also important to partner businesses and organizations, as they can use the insights from the data collected by the program to offer incentives to members to increase their engagement and spend. A coalition program like Aeroplan helps them because it can offer a broad array of rewards from a diverse range of partners, providing a high level of choice and the ability to tailor offers catered to the individual.
By emphasizing personalization and delivering truly meaningful experiences, loyal programs boost the value of rewards for members, foster even more engagement and loyalty from them, and allow businesses to build long-term, and rewarding relationships with their customers.