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Why personalisation is the key to your customer loyalty programme’s success

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Take a minute to think about your day so far.

You’ve woken up to an inbox of new personal emails, you’ve opened your favourite social media apps, you’ve checked the weather, read the news, and are now ready for the day ahead.

We would hazard a guess that in the time it’s taken you to get from your bed to your desk, you’ve been blasted with information that is both non-personal and personal. Our next guess would say that you’ve felt more of a connection with the information that is most relevant to you, the personal stuff.

It’s no surprise that in the digital age, consumers expect experiences to be tailored to their personal interests and lifestyle. A report analysing how consumers thought about personalisation found that “44% of people were more likely to become repeat customers” due to a personalised experience with a brand.

The loyalty business is no different. Personalisation is now central to achieving customer loyalty.

Why personalisation?

The traditional idea of loyalty schemes, where points are collected to receive rewards, has become:

1)   Mundane in a heavily saturated market

2)   Impersonal in the world of hyper-personalised online experiences

Collecting points for a reward is no longer a differentiator. Everyone is doing it. If you want your loyalty app to succeed – i.e. to truly stand out and add value to your customers – then you need to do something different. A recent report from Deloitte found that the new differentiator lies in “personalisation, relevance, exclusivity and engagement”. It’s in these areas that loyalty apps must differentiate themselves from the competition.

Personalisation isn’t anything new. A 2016 Accenture report found that:

  •       56% of consumers are more likely to purchase from a brand that recognises them by name
  •       65% are more likely to shop at a retailer that knows their purchase history

Companies like Amazon have been using personalised recommendations for decades. Consumers are used to receiving recommendations based on their interests from the likes of Amazon, Netflix and Spotify. These companies are now taking personalisation to the next level, using artificial intelligence (AI) and complex algorithms to drive what is being called ‘hyper-personalisation’.

No time for waiting around

With smartphones giving users access to the internet on the go, people can find what they want when they want it. Many commentators and researchers have stated that this is reducing attention spans – as people become less patient and are only satisfied by an instant fix.

Therefore, time is what is most important to consumers in the digital age. Consumers want experiences that save time. For instance, less time searching for what they like. Personalisation allows for this – and it is these kinds of experience that generate loyalty. Spotify is a great example of this.

A personalisation success story: Spotify

In just over 12 years, Spotify has grown to 170 million active users. Its success is down to the hyper-personalised user experiences it provides.

A significant aspect of this is Spotify’s Discover Weekly playlists. These are weekly playlists tailored to individual users based on Spotify’s understanding of each individual’s tastes in music: what they have listened to and what they might like to listen to in future.

Spotify stands out among its competitors for the success of this hyper-personalised approach. Other music streaming sites have relied on different models, for instance organising celebrated DJs, or popular musicians to curate playlists. Instead, Spotify uses AI and complex algorithms to provide the next level of personalisation. It uses a mix of collaborative filtering, natural language processing, and raw audio processing to create these hyper-personalised recommendations.

The result is an unparalleled success story, demonstrating just how powerful that personalisation is as a force for winning and retaining loyalty. Spotify’s users are fiercely loyal to the platform. 75 million people pay for its premium service, which is reportedly forecast to increase to 96 million by the end of 2018. When you compare this to Apple’s 36 million paying subscribers, it becomes clear that Spotify’s strategy to leverage AI in this way is key.

AI is key to personalisation

As we have seen, it is AI which is key to driving the next level of personalisation. Machine learning and natural language processing are improving the insights that computers can collect about users from the data generated. What’s more, they are also speeding up the time it takes to gain these insights and providing them with greater accuracy.

AI can mine through vast amounts of unstructured data – from text to photographs –gather insights in a way that simply hasn’t been possible before.

It’s this tool that can set your loyalty programme apart, by figuring out what your customer really wants, anticipating their needs and delivering experiences tailored to their lifestyle, interests, activity, and even future intentions.

Personalise your loyalty app

Pixoneye can provide loyalty apps with hyper-personalised experiences.

An informative data set to tell us about a user’s unique set of interests or lifestyle is the photo library on their phone. Pixoneye uses sophisticated computer vision that allows you to analyse your customer through their image gallery. By understanding their images, you can ensure your customers are getting the most personalised experience using your loyalty app.

Pixoneye is the only company in the world that uses this kind of technology, giving your customers a hyper-personalised experience is the key to driving loyalty in the digital age.

To find out more about Pixoneye and why personalisation is so important to customer loyalty, get in touch with us today.

 

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