From 1:1 to 1:You

This post is sponsored by Epsilon.

Loyalty marketing is no longer just about rewards and offers – customers expect their favoured brands to anticipate their needs. In a recent study, 80% of people stated they were more likely to do business with a company that offers personalised experiences.

Recently, Epsilon has been working with clients to shift from 1:1, a “generically personalised” messaging strategy with promotional offers, to 1:You, a holistic customer experience strategy personalised with the best choices for individuals across all points of interaction.

We’ve found there are three steps on this journey:

  1. Operational and transactional – during this first stage of maturity, brands don’t have extensive programmes to retain customers. They rely on discounts, sales and non-targeted communications to win customers back. There’s nothing “purposeful” keeping them connected, such as messaging and campaigns that are personalised using 360-degree customer views.
  2. Customer centricity – brands develop an explicit loyalty programme or an implicit behind-the-scenes “best customer” strategy, and use data capture to get a fuller picture of their customers. They may implement institutional tactics to entice customers to come back. CRM and loyalty programmes are actively in use here, and personalisation strategies are coming into play.
  3. Enculturation – here’s where brands go above and beyond the traditional loyalty programme. Loyalty is enculturated. During this stage, brands build customer-centricity into their DNA and culture, creating experiences that draw customers back. It’s here where marketers can communicate with 1:You messages – a holistic customer experience that’s personalised to the individual across all interactions.

A global airline uses Epsilon’s machine learning capabilities to obtain a fuller view of its loyalty members and improve their journeys after the booking process.

Based on historical purchases, usage patterns and interests, they can deliver a unique series of interactions, including upsell and cross-sell personalisation to drive additional revenue from seat upgrades, partner programmes, priority boarding, flight changes, entertainment, and food and beverage.

Personalisation is executed across all channels – web, email, SMS, mobile, check-in kiosks and call centres – and can reward customer behaviour in-the-moment, creating meaningful loyalty experiences and building connections with customers.

As customers become more demanding, marketers need to be honest about where they are on this journey. They need to question whether they have the right strategy to guide them, an aligned organisation structure to deliver, robust technology that can capture and deliver interactions and employees trained to respond.

It’s a big ask. And getting there isn’t always easy. Download our latest e-book which will challenge how you think about your current and future loyalty personalisation efforts.

It covers five key components to put you on the path to personalising the entire customer experience. It’s time to shift from 1:1 to 1:You.

The writer is Paul Davies, senior vice-president for Epsilon APAC.