In the realm of customer loyalty, personalization has become a critical factor in creating meaningful connections with members. Kobie’s 2024 Consumer Research Report explains the nuances of personalization, clarifying what makes an experience feel personal to consumers and how brands can leverage this to grow loyalty.
The Deficit Strategy of Personalization
Personalization often operates as a deficit strategy. This means that while consumers may not overtly notice when personalization is done right, they quickly become dissatisfied when it is done wrong. The report reveals that certain personalized elements, such as recognizing loyalty tenure (60%) and birthday recognition (54%), make experiences feel more personal, even though their absence might not significantly impact perceptions.
Effective Personalization 101
- Recognize loyalty tenure and birthdays: Celebrating milestones like loyalty tenure and birthdays can create a sense of recognition and appreciation. While missing these opportunities might not drastically harm perceptions, leveraging them can enhance the overall member experience.
- Demonstrate attention to preferences: Personalizing messages based on past purchases and stated preferences is crucial. The report shows that message relevance significantly impacts whether an experience feels personalized. Accurate product or service recommendations and tailored content based on member interests can drive positive perceptions.
Mapping the Message to the Medium
Personalization extends beyond content; it involves choosing the right communication channels for different types of messages. The research highlights that email remains a preferred channel across various message types, but younger respondents also favor text messages and mobile apps. Urgent or important messages should be delivered through immediate channels like phone calls or text messages, while lighter, fun content is best suited for social media.
The Role of Zero-Party Data
Collecting Zero-Party Data (the data members willingly share), is essential for successful personalization. The report indicates that incentives significantly increase members’ willingness to share information such as email addresses (85% with incentive), hobbies, and interests. However, brands must use this data wisely to tailor experiences and simultaneously build trust with members.
Sharing as an Emotional Act
Members’ willingness to share data correlates with their emotional loyalty drivers. Those with strong emotional connections, driven by factors like status and reciprocity, are more likely to share information. Brands should focus on creating emotionally engaging experiences to encourage data sharing and deepen loyalty.
Looking to explore even more loyalty insights? Access Kobie’s full 2024 Consumer Research for four additional sections packed with valuable findings and actionable strategies, including:
- Understanding Program Health and Member Disengagement
- Engaging Members Beyond Transactions
- The Power of Tiers in Loyalty Programs
- Navigating Loyalty Program Innovations
Read the full report to supercharge your loyalty strategy with insights that keep your brand ahead of the game!
Written By: Dr. JR Slubowski
Dr. JR Slubowski, Kobie’s Associate VP of Strategic Consulting focuses on creating engaging data-driven experiences for brands that customers love. His commitment to craft critical thought-out strategies allows him to perform complex customer analytics and to drive results with relevant data. He specializes in customer analytics, marketing communications and strategic planning.
