How to Increase Customer LTV by Syncing Loyalty Data Into Your CRM Marketing
Brands that integrate loyalty data with the rest of their customer data sources can prevent campaigns from cross-firing, and instead execute ultra-relevant, 360 degrees personalized ones. This blog post also includes examples (of how Optimove customers do it via our integration with Yotpo)
With years of experience seeing brands increase their customers’ lifetime value by unifying and optimizing customer experiences, we feel like there’s a pretty straightforward formula to achieving it: first, brands need to consolidate all customer data to one single source of truth, then leverage AI journey-mapping to flawlessly orchestrate campaigns across any engagement channel, all while measuring the impact of each of their activities.
Sounds simple? Well, with the right tech at your helm, it is really totally doable, and can lead to even more than 33% increase in customer lifetime value.
But it all starts with that “unifying your data” thing. And one thing that is often overlooked by brands in this regard, concerns loyalty data specifically, since data from CRM Marketing technologies and data from loyalty programs are typically separate. To make it all work, it should always be unified to empower marketers to communicate with their customers effectively.
Why this is Valuable?
Combining loyalty and CRM programs significantly reduces the risk of cross-firing journeys.
CRM marketing and loyalty programs both share a common goal – increasing revenue from existing customers; however, from what we’ve been seeing with hundreds of clients over the years, they are too often managed in different technologies.
This lack of sync easily leads to sub-par customer experiences in terms of personalization and holistic messaging.
Here’s an example – a customer may simultaneously be a gold loyalty member in the loyalty system, and at “risk of churn” in their CRM system, with each of these statuses triggering a series of conflicting campaign.
Can You Fix it? Yes, We Can!
Obviously, fixing it requires syncing all your customer data sources so that your CRM marketing hub/cross-channel campaign management tool (some call it “actionable” or “smart” CDP) can take everything into consideration when building journeys and executing messaging.
One way we do it at Optimove is by building integrations with leading loyalty software, such as Yotpo. This integration will allow brands to consolidate customer data in realtime, create robust customer segments that combine loyalty data with other data sources, and orchestrate realtime, contextual, and personalized multichannel campaigns.
Specifically, Optimove’s integration with Yotpo will empower marketers to:
Encourage customers to reach higher VIP tiers
Instantly deliver coupon codes
Inform customers of changes to their point status
Let’s put those in more actionable terms.
Encourage Customers to Reach Higher VIP Tiers
Providing customers with awards based on their VIP tier encourages them to accomplish certain activities, such as making another purchase, or increasing the value of a current order. By leveraging Optimove’s realtime integration with Yotpo, marketers can identify prime moments to communicate with customers about their tier level, and as such, grow their customer lifetime value.
Create a personalized campaign that is triggered as a webpage pop-up upon checkout, encouraging customers to reach or maintain higher VIP tiers by increasing their purchase amount (and, perhaps, suggesting the product that will allow them to do so. Preferably, with an easy “add to basket” option).
Send an email campaign encouraging customers who are close to achieving a higher VIP tier, or who are about to lose their VIP status to make another purchase/other activity that is related to CLTV.
To further personalize this message and increase the likelihood of the customers adding an item, marketers can include items from the customers’ favorite product category in the message.
Instantly Deliver Coupon Codes
Delivering transactional campaigns is just as important as delivering marketing ones. Customers who are awarded coupon codes or have redeemed a discount by exchanging points for a coupon code expect to receive it instantly.
Withholding or delaying the delivery of such a campaign can damage the customer’s experience and reduce their loyalty.
Using Optimove’s realtime integration with Yotpo, marketers can instantly deliver coupon codes when a customer earns a discount, or if a customer exchanges points for a coupon code. Using this data, marketers can also include information about previously delivered coupon codes in campaigns that follow.
Inform Customers of Changes to their Point Status
Humans by nature are driven to accomplish goals, especially when they are attainable. Displaying customers’ point status in the body of every communication can incentivize customers to increase their points or redeem them to make a purchase.
To contextualize communications, marketers can send information about changes to the customers’ point status in reaction to realtime changes, and by so increase the likelihood of customers being responsive.
Leveraging Optimove’s integration with Yotpo, marketers can go beyond just displaying the number of points each customer has. By combining loyalty data with additional customer attributes from Optimove, such as the customer’s favorite product category, marketers can use conditional formatting to customize emails for each customer, displaying items from their favorite product category that are in their current point range.
Shai Frank is Optimove’s VP Product. Shai specializes in discovering customer needs and delivering innovative, well-designed products to cater for them. In his position, Shai is responsible for defining Optimove’s product strategy and leading a team of product managers and UX designers in designing and building Optimove’s suite of relationship-marketing tools. Prior to joining Optimove, Shai served for 4 years as the VP of Product for a successful Marketing Automation, and before that at several product management positions in the Automotive, Security and Drones industries. Shai holds a B.Sc. in Industrial Engineering and an MBA – both from the Tel-Aviv University in Israel.
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