In an increasingly competitive commerce landscape, businesses must take proactive steps to boost customer engagement and loyalty. The hard truth is, however, that points-based rewards systems may no longer be enough.
To truly drive growth, businesses should take a more holistic, customer-centered approach to building brand loyalty — incorporating personalized offers and experiences into each touchpoint.
Enter: intelligent loyalty programs. Powered by AI and advanced data insights, these programs represent the next evolution of the customer engagement strategy, going beyond the early days of running rewards points programs and emailing mass discounts. They focus on gaining a deeper understanding of the entire customer journey — from acquiring new customers to personalizing checkout options and driving repeat purchases.
By gathering data throughout this journey businesses can meet shoppers with customized loyalty offers and experiences. With that in mind, we’ll explore strategies to help businesses increase customer loyalty, harness valuable insights, and prepare for the future of customer engagement.
One way that businesses can potentially increase customer engagement is by prioritizing personalization strategies throughout the shopper journey. According to Statista, approximately 75% of global customers surveyed expect improved personalization in exchange for sharing personal data with businesses, and 73% expect more-personalized experiences as new technologies emerge and evolve.1
The right hyper-personalization tactics can unlock benefits for both businesses and customers. They can help shoppers access product recommendations, loyalty rewards, and customer service experiences that are tailored to their specific needs and preferences — and that may encourage them to come back.
As Statista reported, 80% of global business leaders surveyed acknowledged that customer personalization leads to increased spending, and 62% confirmed that it had a positive impact on customer retention.2
So, how can businesses effectively deliver these personalized experiences to boost revenue and engagement? They can start by leveraging customer insights from each platform.
Customer data is the backbone of any successful personalization strategy. By gathering advanced analytics from across platforms, businesses can gain a comprehensive view of each customer journey and meet shoppers with real-time personalization strategies that enhance results. To better understand customer behaviors and preferences, for example, you might track key metrics such as:
With these metrics at their fingertips, businesses can build a 360-degree view of the customer journey. This involves integrating purchase data with existing customer relationship management (CRM) platforms to understand how and when shoppers engage with a brand. This holistic view should include each customer’s purchase history, preferred payment methods, on-site behaviors, and customer service interactions.
Businesses can then use this customer data for audience segmentation. That is, they can create unique categories of shoppers based on different criteria, including:
So, how can businesses effectively gather, analyze, and activate large data sets from vast customer bases in real time? One way is to use forward-thinking solutions such as artificial intelligence (AI) and machine learning (ML). These tools can help businesses mine data for valuable customer insights and predict the outcome of certain strategies.
It’s also essential that today’s businesses consider the privacy risks and ethical concerns of data-gathering and personalization. As the International Association of Privacy Professionals reported, 68% of global customers surveyed are concerned about their online privacy.3 To build trust, businesses must strike a delicate balance between protecting customer information and leveraging that information to improve experiences. The following strategies can help them do this:
Maintain compliance. Stay up to date with the latest data privacy standards and regulations, such as the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA). It is always a good idea for businesses to consult with legal counsel on how to stay compliant with the ever-evolving landscape of privacy regulations.
Businesses have an opportunity to transform customer engagement by meeting shoppers with dynamic, playful, and personalized experiences that go beyond just points systems and discount codes. For example, enterprises can offer the following rewards to not just help drive repeat purchases but capture customer attention and interest across platforms:
These personalized customer experiences can be effective because they may resonate with shoppers on psychological and emotional levels. More specifically, they can appeal to customers' core values, such as:
Acquiring new customers can be challenging. Once you've converted them, take proactive steps to help keep them engaged and coming back for more with personalization. This is more complex than just sending “Thank you” emails or monthly texts with discounts. To truly nurture customer relationships and increase ROI, you should deliver seamless customer experiences across physical stores, e-commerce sites, mobile apps, and other interaction points. This may include improving each channel for optimal accessibility and easy engagement.
For example, businesses can help drive repeat purchases with these omnichannel marketing strategies:
As customer behaviors continue to evolve, AI and ML can help businesses predict people’s preferences and deliver truly individualized offers.
For instance, businesses are already improving customer experiences with AI chatbots for customer service and product research, AI algorithms for continuous learning, and AI-based fraud protection.
Still, businesses will also need to balance these advanced automated tools to nurture customer relationships through loyalty programs.
PayPal's new advanced offers program is designed to help boost your growth and help reduce costs with product innovations that build intelligence, personalization, and speed into every customer touchpoint — to help businesses adapt to this new world of customer experiences. Backed by PayPal's extensive data set, it gives enterprises the tools to help reach new customers with AI-powered offers. These innovative solutions include:
PayPal Package Tracking. This feature has helped enterprises reduce “items not received” disputes by as much as 80%,7 helping to increase efficiency and improve customer experiences.
Are you ready for the future of personalization? Learn more about how to build a forward-thinking customer engagement strategy with PayPal.
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