Most brands dream of creating customer loyalty programs that stack up to the likes of Starbucks, Sephora, United Airlines, and Amazon. These loyalty-leading brands build deep relationships with customers by offering them exactly what they’re demanding from modern loyalty programs, and in order to do it they use solutions like personalization, gamification, and real-time offer optimization.
Building happy and loyal customers results in increased revenue, customer lifetime value, and decreased churn rates for brands. On top of that, according to BCG, redirecting 25% of mass promotion spending to personalized or dynamic offers can increase return on investment (ROI) by 200%. With numbers like those, it’s a no brainer for brands to start focusing their marketing efforts towards programs that build customer retention and loyalty.
In today’s customer-centric commerce, some of these leading brands are utilizing Dynamic Offer platforms in their loyalty programs to achieve this modern customer loyalty success.
Dynamic offers are highly flexible and personalized offers that allow brands to react quickly and to experiment to ensure their offers engage customers to the fullest potential. Customers are presented with offers that are personalized to their unique shopping habits and preferences and as the customers engage with their offers, machine-learning optimizes future offers to maintain and increase the best possible personalization per customer.
This type of offer provides a proven way to engage known customers with valuable content and also provides a unique way to introduce customers to new products, new services, or new activities they may otherwise not try. Additionally, by no longer sending mass offers to consumers who would already be spending with your brand, or suggesting purchases that are not relevant, brands are able to create efficient loyalty programs that have an impact on revenue and customer lifetime value.
The emergence of dynamic offer platforms solves historical issues of scale, automation and optimization challenges we’ve seen in existing personalization technologies and approaches.
By using dynamic offer optimization, brands can easily create offers that are both relevant and valuable - making it possible to engage your customers, enhance your business, and increase customer satisfaction and loyalty at the same time.
Harnessing the power of dynamic offers is a game-changer for loyalty programs. Before you jump into implementing dynamic offers, assess your tech stack to determine if you’re ready to get started today, or if you should consider a few more additions that will enable your team to make dynamic offers successful.
When brands move from their traditional way of managing offers to a more dynamic model, they’ll progress along a spectrum of technology for offers, discounts, and targeting toward continuous, data-driven personalization. Each step along the spectrum builds on the one before it and ensures offers more effectively create customer loyalty.
Here are some criteria to evaluate where you are on the offer spectrum:
Once you have determined where your brand falls in relation to tech-readiness, it’s important to understand how to successfully move into the dynamic offers stage. We’ve put together a list of steps you can follow. Keep these steps in mind when discussing business objectives and technology tool selection as you get ready to make the move to dynamic offers.
Here are the key steps requires to move into the dynamic stage:
As you’re thinking about whether or not your company is ready for dynamic offers, you need to determine where you are on the offer spectrum and then assess which type of business model your brand uses.
The first step is to look at the stages above and honestly evaluate where your brand is right now. Every business has a unique set of circumstances, but if most of the bullet points you see in a specific stage apply to your brand, that’s probably where you’re located.
What’s critical is that you have a customer data platform so you have access to the data you need and a cross-channel campaign management solution in place. Without those tools, you won’t get the value out of a dynamic offer optimization platform. With those in place, you can accelerate that process toward implementing dynamic offers that will increase your brand’s revenue sustainability.
Want to learn more about how to successfully move your brand into the dynamic stage?
Get an in-depth step-by-step overview of each stage in the move to dynamic offers with our modernizing loyalty guide. We’ll break down how to identify where your brand is in each stage and how to navigate through as you build out your strategy.
Formation is the pioneer of Dynamic Offer Optimization. Our team is made up of experts in personalized experiences in a number of industries – banking, retail, gaming technology, and more. Over the last five years, our patented machine-learning technology has powered the offer programs for some of the world’s largest Fortune 500 companies.
Formation’s Dynamic Offer (DYNO) platform automates the execution, fulfillment, and measurement of personalized offers at scale. Marketers build campaigns focused on a specific business objective from a wide range of single-action or multi-action offer types. The platform then automatically generates a unique offer for each customer within the guardrails determined by the marketer and continuously optimizes each campaign automatically, enabling the marketer to focus on gaining new consumer insights and designing campaigns to achieve new business objectives. Formation’s platform integrates with any marketing stack to ingest and process data from a CDP, deploy campaigns through existing distribution channels, and fulfill rewards through current loyalty systems.
To learn more about Formation’s dynamic offer platform and how we can help your company implement dynamic offers, click here.