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Segmentation Is Now A Key Component Of A Successful Loyalty Program

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Understanding your customer and interacting with them in a customized manner is the goal of every marketer. Segmentation allows for targeted engagement, as discussed during the Engagement & Experience Expo, presented by Loyalty360. A successful loyalty program needs to integrate with this concept so let’s explore some examples.

Six loyalty programs using segmentation

1. Meineke

Meineke has established five segments. Consumers in each group differ in what they value. Motor Mavericks care about reliability, whereas the Service Delayers value convenience. The certification of the Meineke technicians appeals to the first group, and the number of locations and extended hours matter to the second segment.

2. Gold’s Gym

Gold’s Gym has challenged itself to determine what makes different groups passionate about their brand and what their trigger points are. The fitness chain has developed a communication cadence that differs by segment. A new app and wearables are integrated with a CRM system and allow the member to customize fitness and nutrition regiments.

3. Samsung

Samsung has developed six unique profiles for their cell phone products, from Tech Experts to Deal Seekers. Since carriers own the customers, Samsung had to rely on information collected through phone registrations. Using the segments allows for personalization in messaging. According to their A/B testing, those exposed to loyalty marketing emails proved 1.6x more valuable in A/B testing.

4. La Quinta, 7-Eleven

However, loyalty marketers struggle to integrate the rewards program into this segmented approach. Members could be rewarded for engaging with your brand with personalized touchpoints. There is no lack of data, but making sense of this is still a priority for the future. Hotel chains such as La Quinta still only reward their customers based on number of stays and dollars spent. 7-Eleven makes offers to their customers based on the time of day. What else is possible?

5. AARP

Engagement is crucial to AARP’s social mission, which is to prepare and educate members about how to live their best lives possible as they age. Developed in partnership with Deluxe, their “Rewards for Good” program includes over 300 earn behaviors, such as retirement calculators and shredding events. The initiative is driving active member engagement, and has also been a successful tool to drive new members. Messaging is personalized and is executed through targeting on the site and dynamic content in emails.

6. Allstate

In the insurance industry, customer relationships tend to be low tech and restricted to coverage review, premium payment and claims. Technology can be leveraged to more frequently interact with customers. Allstate’s new Drivewise mobile app encourages not only safe driving, but customizes premiums based on the policy holder’s individual driving behavior. Customers can also earn points through Allstate’s rewards program, a collaboration with Deluxe. Points can be redeemed for savings on brand name merchandise, daily deals, auctions, local offers and more.

Data will refine the program

Look at the data from the standpoint of what matters to the customer. To improve their experience, “left brain” information from Voice of the Customer programs, analytics and data integration is critical. This does not tell the whole story, and excludes how a customer feels doing business with you. Supplement this with “right brain” information. What makes the customer happy, sad, angry, scared, confused?

Those companies that are succeeding are affordably offering rewards to every segment and driving profitable behaviors. Since customers keep evolving, every “final” release should only be considered a temporary solution.

This content is accurate at the time of publication and may not be updated.