Got Loyalty Data? It Might Need Rethinking

Good contact data is essential to a successful loyalty program. Without it, a new member won't receive promised communications, benefits and much more. Furthermore, we all know that if the customer doesn't see any benefits from the loyalty program, their opinion of the brand certainly diminishes.

The impact of poor contact data is so significant that improving data collection is the top priority for loyalty programs this fiscal year. It's no wonder that organizations are concerned. Companies believe that about a quarter of their contact data is inaccurate, which means that a large percentage of their loyalty program database will most likely experience the negative effects described above.

To achieve loyalty program success and aid in customer retention, revenue generation and brand promotion, retailers need to take steps to improve the customer sign-up and data collection processes. There are three simple steps to take:

1. Use progressive profiling. Consider limiting the number of fields required for sign up to a bare minimum. Since some of the top channels are point of sale and mobile, you have very little time to collect information without aggravating your customer. The easier it is for a customer to sign up for a program, the more likely they are to do so.

Progressive profiling is a marketing technique that acquires information over time from a customer. By getting them to offer up pieces of information at each interaction point, you can start engaging with the customer (e.g., through email) and then gradually gather more information to expand channel interactions.

2. Validate data upon entry. Customers are making a commitment to the organization when they sign up for a loyalty program, and they're expecting their benefits and communications to be delivered as promised. Poor contact information can get in the way of that agreement.