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 omnichannel 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.