According to a report from business analytics software company SAS and Loyalty 360, the loyalty marketer's association, marketers who reported integrating customer data with loyalty
programs were much more likely to report effectiveness in their customer retention
analytics are among the top two things that help ... loyalty
programs," said Pamela Prentice, chief research officer at SAS. "The
first is rewards [at 42 percent], and the second is customer analytics
[38 percent]." Trailing behind those factors are social media and
SAS's paper favors "planting the seeds of
loyalty earlier in the buy cycle" by applying analytics when prospects
are still considering a purchase. "If the marketing person does a good
job upfront, and uses the analytics and data they can gather, and can do
good segmentation, and matches the company with the right customers,
all that happens before the life cycle [begins]," Prentice said.
Not every consumer is a potential customer, and not every
customer should be in a loyalty program. "Companies are still struggling to determine which segments are their
best," she said. Organizations may want to
release some customers from these programs to invest in better matches.