From Points to Personalization: Unlocking a New Era of Customer Loyalty

To meet evolving customer expectations, businesses must use data and AI to shift from points-centric rewards to personalized customer loyalty.

In today's competitive market, customer loyalty is crucial because it costs 6 to 7 times more (Opens in a new tab) to attract a new customer, than to retain an existing one, who, notably, spends 67% more on average.

Traditional one-size-fits-all methods like points-based systems, tiered rewards, and discounts are no longer sufficient. Modern loyalty focuses on personalized journeys, using behavioral data to anticipate and meet customer needs across multiple channels.

Our latest podcast episode on The CX4CA Show (Opens in a new tab) explores how Salesforce facilitates this shift from transactional rewards to relationship-focused loyalty management, fostering relationships, enhancing customer satisfaction and driving long-term business success.

The emotional aspect of loyalty

In the CX4CA interview with Adam Dore – Senior Director of Digital Transformation & Growth at Horizontal Digital, and Ram Machiraju, Vice President of Product Management at Salesforce, explains that true customer loyalty extends beyond mere transactions: 

“Customer loyalty is an emotional attachment to a brand, where customers remain engaged, even after bad experiences, with an expectation that they will be rewarded and recognized by the brand.”

To grow loyalists, brands need to leverage all the data they have available on customers, says Dore, with tools like Salesforce Data Cloud: “Once you have the right technology in place to capture and unify all your customer data, you can then convert that data into information and insights to better understand preferences, attitudes and affinities, and deliver a truly personalized experience through your loyalty program.”

Creating loyalists through data

So how can a brand use Salesforce Loyalty Management (Opens in a new tab) with Data Cloud (Opens in a new tab) to create an emotional bond with a customer and serve them the personalized experiences they demand?

Before you can nurture a loyalist, you’ve got to create a value exchange first, says Dore, and that’s where Data Cloud comes in.

Consider a frequent traveller in a hotel loyalty program with differing needs for business trips and family vacations. Without a 360-degree view of this customer, the hotel can't effectively cater to both scenarios.

 

Using AI-enabled Data Cloud, the hotel can create a comprehensive profile by:

 

This rich data is then integrated with Loyalty Management to deliver the best possible experience.