L2 hosts a briefing on how brands are leveraging consumer information to improve the effectiveness of their loyalty programs. Without personalization, these programs become costs centers. A few highlights from session excerpt:
Beauty brands are the leaders in personalized welcome emails (using names) with a 37% adoption rate.
Less than 10% of brands across all categories invest in birthday emails.
Adoption of welcome emails has significantly increased year-on-year, yet less than half brands in every consumer category (with the exception of Sportswear) use the tactic.
Discounts are shoppers’ top expectation from loyalty programs. Special shopping hours are most coveted by consumers in the APAC markets.
The #1 barrier to consumer participation in loyalty programs is confusion. Transparency triumphs complicated programs with many steps.
True Religion has been able to customize emails by geolocation and send coupons to consumers within 5 miles of a brand store.