Launching and maintaining a loyalty program can be capital-intensive and time-consuming. Gartner L2’s loyalty report identifies several easier routes brands can take to build rapport with customers.
Lululemon demonstrates that brands can emulate loyalty program elements without requiring additional information outside account signup.The brand gamifies the signup process by tracking profile completion, encouraging customers to insert data in exchange for a personalized site experience. For all account holders, the brand also offers a range of loyalty-like benefits, including order and return tracking, complimentary services, a network of fitness instructors, and streamlined payment and delivery options.
For brands seeking ways to capture customer data outside loyalty programs, a distinct value trade-off must exist between brands and consumers. OPI is able to personalize the site experience by partnering with Qubit to observe consumer buying behavior and distinguish between different shoppers. The brand recognizes the varying needs of shoppers and retains two separate data sets for regular customers and professionals, who account for 80% and 20% of site traffic, respectively. Additionally, OPI directs shoppers to Amazon for purchases, giving the brand more insight into trending products and sales conversions on the e-tailer’s site.
As brands consider these strategies to mirror the benefits of loyalty programs and enhance the customer experience, data transparency must also be top-of-mind. Amidst consumer concerns around data privacy, brands must clearly explain how they use collected data and what benefits accrue to the customer. As consumers continue seeking transparency from brands that offer tailored services in exchange for sharing data, a personalized site experience no longer suffices.