Strategy: Transpromo’s Evolution
Look to Loyalty
Loyalty clubs or rewards programs are ideal ways for companies to obtain purchase history information for individual consumers. With these campaigns, there are already existing data analytics available to a marketer, enabling businesses to offer personalized ads or relevant information to each recipient.
This year the CMO Council launched its "Getting a Lift from Loyalty" campaign, a leadership initiative that is working to determine key areas of optimization and opportunity as well as develop best practices for leveraging and maximizing loyalty and reward programs. A few related statistics associated with this research include:
- From 2006 through 2008, loyalty club membership in the U.S. increased from 1.32 billion to 1.81 billion. This is a whopping annual growth rate of nearly 25 percent.
- Seventy-five percent of consumers are members of loyalty or rewards programs, and 25 percent belong to two or more.
- For every 12 loyalty programs, only about 4.7 are used by members on a regular basis.
- Although marketers continue to spend more than $1 billion on these loyalty campaigns, many have not defined clear and precise strategies for optimizing revenue potential through them.
What do these stats mean for your business, and what do they have to do with transpromo?
These highlight that loyalty and rewards programs are not currently being optimized to their fullest potential despite the great increase in membership during recent years. There is extensive information that can be deciphered through loyalty club transactions. And by implementing high-quality data analytics tools, companies almost seamlessly can use this insight to retain and engage customers. In this instance, a transpromo campaign can signify a quick and consistent return on investment.
Beyond the Coupon
Most customers find it valuable to learn about cost savings, especially in regards to a recent purchase. Despite popular belief, these promotions do not always necessarily have to be discounts or offers. For example, if a customer purchases shampoo at a certain price, a promotion can be delivered pointing out that selecting another brand would have saved money. Although this isn't a direct coupon, it shows the customer that you have her best interests in mind. The software components of transpromo enable this personalized data to be generated and shared.