Key benefits of using a Loyalty Program to improve campaigns

There are many benefits to running a loyalty & experience program. Specifically for marketers that want to improve the quality and effect of their email campaigns, we summarize the 4 key benefits of having a loyalty program for your campaigns:

ROI

Email marketing produces an average ROI of € 40 for every € 1 spent on it. A VEMT Loyalty & Experience program boosts this with 52% extra. This effect is so incredibly strong because a program contributes both to the volume of your subscriber base as well as to delivering the data to segment and personalize your campaigns better so relevancy increases and your revenue from email campaigns grows significantly.

Engagement

Members tend to be your most engaged audience, with subscribers at a good second place. Other than customer audiences that sometimes see your advertisement, these groups of customers are constantly reminded about your brand, service or stores through your email campaigns and rewards, so engagement with your activities is much higher and will continue to grow when you increase relevancy of your campaigns by personalization and segmentation in the VEMT Campaigns module and the VEMT Audience Builder. The impact varies strongly per sector, but usually exceeds a more than double engagement rate. Per Euro spent, this compares to almost 4 times the engagement rate of (social media) advertising. Not bad.

Omni-channel, centralized data

The fact that the VEMT Loyalty & Experience Programs are omni-channel by default allows you to discover many new customer insights. This enables you to identify patterns in the behavior of your customers and to adapt your email marketing strategy to them by adding more automations and better segmentation in the VEMT platform. Now you can manage your marketing team on an omni-channel basis and have your data centralized, rather than per channel, gaining extra benefits of scale and efficiency. Email campaigns can now better address all interactions, their channel preferences and email automations will respond to interactions in all channels.

Stronger growth and better customer recruitment

The VEMT CDP provides input about all online visitors, allowing you to respond with real-time offers relevant to them. As soon as you manage to capture one of their contact data (be it email, mobile or otherwise), you can follow up on those interactions with more messages, growing interest and increasing the chance on conversion by guiding visitors to the key stages in their customer journey. You will increase the chance to engage with your hottest prospects and will see your revenue grow quickly. A neat extra and very effective trick is to promise prospects rewards for past interactions 9which you have kept track of through our platform) when they convert to membership now. Retro-active membership: too seductive to ignore for most of your customers!

Achieving these benefits is not that hard, but it does require to run a loyalty program. Contact us to start.

Question 1:
In the context of rising concerns about privacy and data misuse, how can marketers leverage loyalty programs while ensuring compliance with global data protection regulations like GDPR and CCPA?

Answer:
Marketers can leverage loyalty programs in compliance with GDPR, CCPA, and other data protection regulations by adopting a privacy-first approach, ensuring that data collection, storage, and processing practices are transparent and secure. This involves obtaining explicit consent from users before collecting their data, providing clear information about how their data will be used, and giving them easy options to manage their preferences and rights, including data access, correction, and deletion. Marketers should also implement data minimization principles, collecting only what is necessary for the loyalty program and ensuring data is anonymized or pseudonymized where possible to protect user privacy.

Question 2:
Considering the evolution of consumer expectations, how can loyalty programs incorporate experiential rewards that go beyond traditional points and discounts to create more meaningful connections with customers?

Answer:
Loyalty programs can incorporate experiential rewards by focusing on personalized and unique experiences that resonate with customers’ interests and values. This could include exclusive access to events, personalized services, early access to new products, or opportunities for unique experiences related to the brand, such as cooking classes with a favorite chef for a food-related brand or a behind-the-scenes tour for a fashion brand. Utilizing data analytics to understand customer preferences and behaviors can help tailor these experiences to individual interests, enhancing the perceived value of the loyalty program and fostering deeper emotional connections with the brand.