The true extent of the value that companies can derive from data is still being explored. However, customer data that enables brands to target consumers on a more individual level gives those brands an immeasurable advantage through increased relevance and minimised risk. As a result, companies have started to move away from the traditional points-based loyalty model as the key indicator of a loyalty programme’s value.
Sonja Fourie, head of ABSA Rewards and VAS explains, “Loyalty in South Africa is following the global trend of moving away from pure rewards, earn-and-burn programmes to personal and personalised interactions that stretch further than just name personalisation in emails towards big-data analysis of individual consumer behaviours and needs and the subsequent addressing of those needs.”
Cromhout believes this is where brands can make a connection and a lasting impression with customers – by designing covert elements that are tailored according to the individual rather than overt elements such as a generalised birthday voucher that everyone gets. Truth advises clients to place the majority of their focus on the covert elements of their programme. “The data-fuelled marketing efforts that enable a company to offer cat lovers discounts on cat food and offer the cash-strapped student money off two-minute noodles – these should form a core part of a company’s value proposition,” says Cromhout
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