Influence of personalization and generosity on purchases

Par 7 December 2021 July 14th, 2022 Aucuns Commentaires
Jeune femme sur son mobile, photographiant ses achats

As part of the LoyalT 2021 study, experts from R3 Marketing and Leger have analyzed the influence of personalization and perceived generosity of a program on member purchases. Results.

The so-called transactional loyalty is no longer enough to build a good relationship with customers. Simply put, offering points is no longer what distinguishes one program from another.

“There is a clear difference in the performance between programs that generate content and customized offerings based on transactional data, and programs whose main actions are offering points on total spend and pushing promotions to their members. The former programs are far better than the latter.” – Paul Lafortune, partner at R3 Marketing.

Related: Top 10 Loyalty Programs in Canada for 2021

The LoyalT study1 shows that personalization and the perceived generosity of a program are the two factors on which customer loyalty should be built.

Specifically, our analysis shows that there is a direct correlation between the customization of a program and its ability to modify the purchasing behaviour of its members (increased visits and increased annual purchases). The same is true for the perceived generosity of a program.

Graph of the influence of purchasing behavior related to the generosity and personalization“Every loyalty specialist was aware of this, but what is different now is that content personalization shows a correlation score as high as that of perceived generosity.” – Hans Laroche, partner at R3 Marketing.

As far as perceived generosity goes, it is built on the ability of a member to earn points in different ways. The program should avoid rewarding its members based solely on purchases. For example, the best programs reward their members for engagement through several types of interactions such as:

  • using the mobile app
  • participating in quizzes, games or surveys
  • posting a review
  • watching a video

If not done yet, program managers should also measure the perceived generosity in relation to key competitors’ programs.

The LoyalT study analyzed 14 different ways to award bonuses to customers. Get the personalized report to find out how your program is performing on these elements.

The ability to know your customers well and offer personalization is no longer a luxury. A brand or a retailer needs to understand its customers, their needs and buying behaviours. This data should be used to personalize offers and content. Relevance is an added value for members.

R3 Marketing can help you to improve your program. Learn more.

LoyalT Study, Top 10 loyalty programs in Canada and latest trends

Web survey conducted by Leger from September 13 to October 14 2021 with 10,000 Canadians respondents aged 18 or older, selected from LEO panel.