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Advantages of CDP-Based Loyalty Programs

Many brands do not recognize how customer data platforms and loyalty solutions can be leveraged for customer retention. A CDP or a customer data platform creates customer profiles based on data collected from various sources. For example, webforms, CRM, mobile apps, email, SMS, social media, purchase histories, and more. It includes three layers - Data Capture, Decision Engine, and Delivery.

The data capture layer collects data from multiple resources. The decision engine layer creates segments based on the collected data like the most engaged customers, frequent buyers, first-time buyers, etc. The delivery layer provides personalized marketing content based on the segments created across different marketing channels.

How CDPs can be used in creating loyalty programs and their advantages:

  1. Create 360-degree customer profiles: Loyalty programs can be a great source of transactional, behavioral, and demographic customer data. A CDP can quickly utilize this data to create better customer profiles for improved marketing strategies. 
  1. Personalized marketing loops: Many retailers just consider loyalty programs for profits and revenue growth. However, customer loyalty programs can provide a deeper understanding of customer behavior. This way, retailers can utilize customer data to further personalize their shopping experience.
  1. Omnichannel loyalty programs: Retailers can now retain customers even more by using an omnichannel loyalty program strategy. This way, they can recognize and reward every action that a customer takes across any marketing platform. This can further escalate sales and increase customer lifetime value.
  1. Better data management: Loyalty programs backed up with CDPs make it easier for companies to manage customer data. Once you have a centralized system for collecting, segmenting, and analyzing data you can act upon customer data much faster, and that too in real-time.
  1. Better data analytics and ROI: A CDP-driven loyalty program can help in analyzing the effectiveness of a campaign, promotional offer, or reward in real-time. This can help marketers make insightful decisions regarding marketing campaigns and product promotions.

CDP-driven loyalty programs hold immense power when it comes to customer retention and brand loyalty. It has now become essential for retailers to keep a close eye on customer behavior and every action that they take. A CDP can help them collect data from every touchpoint of a loyalty program and utilize it in an instant for creating better marketing policies. It can help you understand your customers at a deeper level and provide them better, more personalized shopping experience every time they interact with your brand.

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