Tokenization and data – the value in unlocking loyalty at the Point of Sale
Merchants are no stranger to the transformational power of point of sale (POS) data. They already use it to link demand with inventory, create customer profiles for marketing and to spot buying trends in individual and across multiple locations.
However, the true commercial value of sales data lies in being able to drill down to individual customer’s buying behaviors – what they’re buying, where and when, and how they paid for it while staying data compliant.
Revenue hungry brands are eager to tap into this rich vein of data to re-energize their loyalty programs with seamless access to personalized content and tailored rewards. But, without the technology to link it securely to a specific customer, and across business functions, the prospect of meaningfully monetizing is lost.
Smart and safe: Harnessing data and tokenization
So how to unlock it? For omni-channel brands focused on driving stickier relationships, the easiest way to harness data and ID is using tokenization. This works by generating a customer identifier code or ‘token’ which is linked to the payment mechanism. Data from an individual’s sales journey can then be tracked invisibly, with no friction, and without compromising sensitive cardholder details.
Used in tandem with a connected commerce platform, tokens can be shared across business functions breaking down operational silos and connecting sales, CRM, social and marketing activities.
Near-money loyalty: Expanding tokenization
Not only that but tokenized points are 100% transferable and tradeable so they become a near-money currency across brands and outlets. This lends itself seamlessly for loyalty programs. Loyalty suddenly becomes more versatile, usable and attractive for customers – and a potential source of revenue for the merchant.
Using customer data in this way allows brands to execute loyalty as part of their business operations – as a platform not as a ‘point’ solution.
By doing so they can make the shift to truly seamless customer centric loyalty programs, delivering highly targeted and fluid rewards that flow smoothly between multiple vendors. Creating more value-rich experiences, boosting uplift and connecting with customers for longer.
All of this and more is just sitting on the POS waiting to be freed.
What We Can Learn From Working With Educators
“Ecosystems” and “collaboration” are two words that are increasingly being used within the commerce space. Being able to connect across channels, businesses, brands, with partners and providers is now ‘mission-critical’ in order to attract, engage and fulfil the experiences demanded by today’s digitally empowered enterprises and consumers.
This is particularly true of specialized markets, such as hospitality, which possess their own unique sales and operational challenges. Be this from social, behavioral, regulatory, technical or economic change.
The rapid pace of transformation makes it essential to pool resources and share experiences wherever we can, to overcome collective issues and create new opportunity for growth.
Gone are the days of siloed mentalities and competitive protectionism – when it comes to the big issues, we are all partners now.
Universities provide vital research support
It’s in this spirit of collaborative expertise that FreedomPay recently entered into a long-term co-operative partnership with the prestigious Center for Hospitality Research (CHR) based at the School of Hotel Administration (SHA), Cornell University.
Representing a global hub for hospitality teaching and research, its Customer Advisory Board includes industry stalwarts like Marriott International, Hilton Worldwide, Hyatt and PwC.
Being part of this unique collective not only allows us to bring a fresh perspective on the hospitality business but also to champion research into areas such as loyalty, data, and the prioritization of technology within the hospitality sector, achieving far more together than we could alone.
Role for tech-innovators
As innovative commerce solutions become more important – not just in hospitality, but across many other niche retail areas including gaming, entertainment and travel – nurturing insight, encouraging innovation and supporting future leaders (through internships, scholarships and funding research), will become a pre-requisite for businesses’ long-term strategies.
For universities, working with technical experts provides a practical perspective on real-life industry challenges such as revenue generation, efficiency or user experience (UX).
It makes sense for businesses too, because teaming up with an educational establishment is a two-way process, enabling businesses to influence and carry newly acquired knowledge forward into their own services and solutions.
There’s no doubt that partnering with Universities and research institutes gets us closer to the heart of cutting-edge thinking and to the young talent that will help shape all of our futures.