How to build brand loyalty in the age of ‘hyper personalisation’
Consumers have more power over brands than ever before. Social media gives them the ability to openly scrutinise or share their great experiences directly with a mass audience, while online shopping means brands are in an ongoing battle to cut prices, hold user attention, deliver products quickly and ultimately stay relevant to keep consumers loyal.
It’s no longer enough for brands to address consumers by their first name in an email on their birthday and think that’s the personalisation box ticked. Hyper personalisation is about using data to react to consumer decisions in real-time and businesses need to bring loyalty programmes into the digital age in order to maintain and grow their consumer base.
Data from YouGov has found that 48% of loyalty programme subscribers are more loyal to those brands. They also found that 87% of consumers are looking for loyalty programmes that offer them discounts and offers.
Insights through AI
So what avenues can brands explore to strengthen this loyalty? Technology is evolving at a rapid rate with significant advancements in AI (artificial intelligence) and computer vision analysis for mobile devices. The data on our smartphones says everything about who we are.
From the places we visit to the photos we take, smartphone data provides more insight about our daily lives and habits than virtually any other data imaginable. With consumer consent, brands can now take advantage of on-device AI, to quickly analyse that data – which includes can include photo galleries, browser history and more – to build a persona for that user.
This first-party collected data is the key to the next generation of hyper-personalised consumer loyalty programmes. For one example among many, on-device AI can analyse a consumer’s entire photo gallery to produce insights about a consumer’s likes and dislikes, their desires and their intentions for the future. It also tells brands about a person’s socioeconomic status and indicates their spending power. This data is gold dust and, in the right hands, can be used to create personalised and relevant discounts and offers, benefiting both the consumer and the brand.