Loyalty Blogs

Having an effective customer loyalty strategy is essential to win customers’ hearts and make them choose your brand over competitors again and again. Having the right information about the right people i.e. your customers at the right time is what you need to plan a loyalty strategy. Many marketing professionals struggle to understand users’ behavior, preferences, and expectations to turn qualified lead into loyal customers, which eventually turns into brand advocates.

Keeping the focus on collecting zero-party and first-party data is a must to help generate leads, acquire customers and retain them for a longer time. In this blog, we will find out some of the best strategies that help retailers to boost customer loyalty through a well-developed Omnichannel Customer Loyalty Management Software.

Significance of Zero-Party & First-Party Data

Zero-party data can be defined as the information that the target audience or customers directly share with the brands to help marketers better understand their needs. It comes with knowledge of who has their information and they have the complete right to choose whether they want to share it or not for engaging with the brand’s content, products, or services.

Some of the major means used by many companies for collecting zero-party data are daily marketing efforts, promo campaigns, etc. or one can use polls, quizzes, surveys & other types of personal info that enable marketers to know more about customers as individuals. The collected data will be later used to segment the audiences as per the shared similarities and create personalized marketing strategies.

The best thing about zero-party data is that it enables marketers to build meaningful connections with customers. Having zero-party data means customers are genuinely interested in your brand’s offerings and they don’t mind sharing information to get personalized experiences. This helps brands to figure out which customers are likely to provide higher ROI and customer lifetime value. Compliant with robust data protection laws, zero-party data helps in building a sense of trust and transparency between both parties as they are aware of the information that is being used and shared.

Top Ways to Succeed in a Zero-Party Era

– Do Not Rent Data

Brands must ensure that they build their databases with the help of direct-consumer relationships. To attain this, one must create a data-collection strategy aligned with the right level of relevance and privacy that can encourage customers to share their data.

Your strategy must be planned in such a way that it incentivizes consumers to tell you about themselves intentionally, with the permission to use that data for better experiences.

– Understand Your Customers Well

Customers today have more choices than ever and they expect digital interactions that are immediate and extremely relevant to them. This means they have quick and real-time expectations and expect your brand to know them and show them how well you know them.

As every individual is unique, having a single view of the customer with preferences and insights is important to enhance decision-making and drive engaging experiences enabling your customers to interact with your brand more often.

– Build a Loyalty Initiative

Whether your business uses a loyalty program or not, it is important to ensure that you provide some sort of value exchange with your customers. For instance, regular interactions across channels enable customers to build connections and trust to start buying from your brand.

If they like your offerings, there is a high chance of increasing loyalty towards your brand, which can later be converted into brand advocates and bring new customers as well.

– Engage Customers in the Right Way

As customers are available on different devices, they expect their brands to engage with them everywhere they are. A study says customers today nearly use six touchpoints on an average and 50% of these customers were found using more than four to engage with the brand. This shows how important it is for the brand to know the devices their target audience is using, to engage in the right way.

– Build a Customized Experience

Ensure that your brand is using the right loyalty program that your customers will value. Once customers participate in the program, they should feel rewarded not just for transactions but for their behaviors as well.

Using the right set of customer data is essential to make your program a success and deliver personalized experiences to gain a competitive advantage keeping customers coming back again and again.

Closing Statement

Hopefully, you must have got an idea of how retailers and business owners can nurture customer loyalty in the zero-party era. To make well-informed business decisions and plan effective marketing strategies, brands must prioritize collecting & leveraging zero-party and first-party data. Knowing customers’ needs is what marketers and business owners must know for higher engagement, higher conversions/sales, and stronger bonds with customers.

Novus, an End-to-End Loyalty Solution provider enables several businesses across the world to capture and use zero-party data through customized loyalty programs, contests, & more. Aligned with the latest Analytics and reporting feature, you can get insights into your customers’ preferences and behaviors to drive sales and boost loyalty to a huge extent. Connect with our expert team and get a demo to see how Novus can help your business grow & thrive in the era of zero-party.