Build Customer Loyalty and Drive Spend with Personalized Incentives

Starbucks is tracking your purchases, but don’t worry: You’ll appreciate the results.

Not only does the corporation know when its Starbucks Rewards members typically stop in, but its access to transactional records also
reveals exactly what their members order. Naturally, Starbucks won’t sit on that data without urging you to dive even deeper into the franchise.

Starbucks Rewards App
Photo courtesy of Starbucks

Rewards members often receive “challenges” to pique interest and increase spend and visit frequency. For instance, the company might encourage weekday customers to come in on the weekends or to trade in their regular pastry order for a slightly higher-priced breakfast sandwich. Merging gamification and individualized rewards ensures that both the consumer and the
business wins.

Starbucks’ advanced marketing tactics illustrate a deep understanding that non-customized experiences frustrated
of the population, while highly personalized ones produce loyalty in 44 percent of consumers.

The only way to consistently drive personalization is to put transactional data to work. After all, if you know what drives your consumers to spend, where they’re spending, how much they’re spending, and how often they’re choosing your business, you have all the necessary ingredients for a stellar personalized engagement strategy.

Getting closer to truly profitable personalization

Starbucks isn’t the only company focused on deepening its connection with buyers. Others, like Lyft, are following suit. In Lyft’s case,
rider inactivity triggers coupons to encourage more business — as does user location.

Lyft Incentive Promotion
Lyft promotion

Achieving this perfect mix of scalable personalized engagement requires a consistent strategy built on digitization, analysis, and automation. Start today by taking the following actions:

 1. Follow the complete consumer journey.

Your business may not have the app adoption rate and access to the level of data that Starbucks has, but that doesn’t mean you can’t
benefit from transactional data. Wonder makes it possible for any company that accepts credit cards to benefit from transactional data. Consumers are interacting with your business right now on a variety of digital channels. Track their moves to see how they’re coming to you and where you can best reach them. This can give you a clearer picture of engagement and which get you to the highest-value customers. The more you follow buyers’ journeys, the more data you’ll have to develop individualized opportunities to engage them.

 2. Reevaluate your content.

You’re already sending content to consumers, but is it compelling? Does it make people truly care about your brand and show the value that your business brings to its customers? All content — whether in text, paragraph, audio, or video form — must showcase the value of your offerings instantly. If it doesn’t, it should be reworked or replaced.

 3. Make sure your touch points are contextual.

Say the right thing to consumers who haven’t visited your establishment in a while, and they’ll come back to you. Say the wrong thing,
and you might lose their interest forever. Be sure that all your language and images are within the context of a consumer’s experience.

 4. Experiment to find what works.

Gotten away from A/B split testing? Put it back into your marketing mix. Additionally, lean heavily on your analytics, and put your
digital channels to the test. Don’t have access to all the data you need? Wonder can help you track transactional behaviors with no technical expertise needed on your end.

 5. Create a simple rewards program.

You don’t have to make your rewards offers complicated to make them compelling. A welcome gift on your website or promo offer on social media can help drive interest. Offer an incentive for joining in order to build your consumer relationship management system, and set yourself up for data collection. Then, define a few rewards scenarios. For instance, if someone falls off the radar, send a $15 off coupon to say “We miss you.” Automate the delivery of rewards and reminders for maximum efficiency.

Maybe you’re not quite as large as Starbucks — yet. That doesn’t mean you can’t compete on a significant scale. It’s possible to generate serious amounts of consumer advocacy and brand fondness if you concentrate on your online-to-offline development and campaigns.


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