We all know the importance of loyal customers.
However, loyal customers can be hard to earn in a noisy world where every business is trying to tempt them with new and exciting deals and offers. We often see a first flush of success and high sign-ups for rewards programs, then low usage, poor return on investment and questionable viability.
However, brands shouldn’t want to ditch loyalty as an asset because it’s far easier and cheaper to retain and grow existing customers than to acquire new ones. So, what’s the answer? It surely must be making loyalty easier to access, more relevant and easier to use; such as creating value that follows the customer across various points of sale.
One of the most effective ways of doing this is something called an analytical token. This is where tech comes in to create, via an algorithm, an identifier code or ‘token’ which is safely and securely linked to the customers payment details, or app, or card, etc.
Analytic Tokens in an omni-channel world
Analytic tokens work across all channels – physical, digital and mobile. With the right architecture, they can also be linked to Customer Relationship Management (CRM) and loyalty systems, to provide a 360-degree view of the customer – what they are buying, in which channels, when and how frequently.
Being able to link identity with transaction flow, opens the door to deeper richer and more valuable insight, allowing organisations to ‘follow’ customer journeys and deliver more personal loyalty experiences.
Businesses can track, monitor and remember tokens without compromising payment security. Effectively turning points and rewards into digital types of near money currencies that can be linked to a customer’s ID. This makes them transportable across platforms, channels and even between businesses and brands.
A token-based digital near-money currency
Loyalty schemes often fall flat because consumers find them too restrictive. In most cases they can only be used with an individual or small collective group of retailers with numerous conditions attached to their use. In addition, traditional voucher, code and coupon systems often have a poor shelf-life, with many users failing to redeem them before they run out.
Analytic token-based digital currency doesn’t have any of these limitations or customer pain points. It can be bought, sold, transferred, gifted, or turned into an ubiquitous currency. It can follow the user across a wider ecosystem, and it retains, and can even increase in value as the popularity of the loyalty scheme grows.
Virtual currencies combined with extended retail partner networks and new customer centric loyalty design schemes will redefine the way we all buy goods and services – breaking down usability barriers and making loyalty even more valuable to a merchant’s bottom line.
Find out how to build liquidity into your loyalty architecture by downloading the FreedomPay Report: Personalization and Digital Identity; the Keys to Unlock Loyalty.