From PSFK's Loyalty Debrief report, here's how three brands are analyzing consumer data in order to provide relevant and curated discounts and other personalized offers

In order to earn their loyalty, consumers expect brands to show that they have a deep understanding of their differentiated needs, so one-size-fits all rewards are no longer as compelling. Brands and retailers are leveraging the data collected through their loyalty programs in order to analyze and understand consumers’ individual preferences and desires, engaging them with tailored rewards and offers that are relevant and interesting while building a one-to-one relationship.

As PSFK researchers identified in the recent Loyalty Debrief report, here's how three brands are creating comprehensive member profiles in order to better understand their needs and allow for preferred category selections:

Sainsbury’s Nectar
U.K. grocer Sainsbury's created a new loyalty app and online platform called New Nectar that allows customers to choose their own discount offers from a curated list of items they buy most frequently. Customers receive weekly offers from the platform based on the products they favorited, and can select up to five favorite offers that will never expire.

Shiseido
Cosmetics brands Shiseido implemented a customer data platform that lets it leverage the data generated by its loyalty app in order to create a more unified view of the customer and provide them with more relevant offers. Using the platform Treasure Data, Shiseido was able to consolidate its owned data from its loyalty program, in-store and mobile POS and website visits, along with third-party data, in order to accurately assess each customer’s preferences and develop more relevant customer communications on its loyalty app, driving a 20% increase in in-store revenue increase per loyalty program member.

Target Circle
Big box retailer Target developed a rewards program called Target Circle that offers personalized rewards based on members’ individual shopping patterns. The retailer analyzes which categories a member shops most frequently and offers rewards and discounts for those particular verticals in order to make the rewards more relevant. The program will also offer members a birthday surprise that is personalized based on their shopping history. Members will also be able to earn votes that help determine where Target directs its charitable donations, allowing them to have a say in how Target impacts their communities.

Loyalty programs that are truly personalized are very engaging for consumers. 85% find a personalized experience where retailers automatically suggest, order or recommend products that best suit personal preferences appealing. For an extensive analysis of contemporary loyalty and membership programming in retail, download PSFK's Loyalty Debrief, available here.


Lead image: stock photos from George Rudy/Shutterstock

In order to earn their loyalty, consumers expect brands to show that they have a deep understanding of their differentiated needs, so one-size-fits all rewards are no longer as compelling. Brands and retailers are leveraging the data collected through their loyalty programs in order to analyze and understand consumers’ individual preferences and desires, engaging them with tailored rewards and offers that are relevant and interesting while building a one-to-one relationship.

As PSFK researchers identified in the recent Loyalty Debrief report, here's how three brands are creating comprehensive member profiles in order to better understand their needs and allow for preferred category selections: