Why Integrating Your Data Systems is Key to Positive Customer Experiences

Working within the customer contact industry does make me particularly critical of the experiences and communications I receive in my everyday life and whilst I try to leave my professional hat in the office, I frequently find myself critiquing the service and communications I receive from companies.

Recently I used the Odeon website to book my tickets for the latest film in the Bond franchise, Skyfall. As a regular cinema-goer I have a profile on their website which lists Chelmsford as my local cinema; using this profile I booked my tickets, before anybody has the chance of ruining Skyfall for me.

The Odeon online booking system is straightforward and easy to use and as you would expect, I received a confirmation email from them after completing my purchase. However, two days later I received a marketing email from Odeon saying “we can see you haven’t booked tickets for Skyfall yet at your local cinema. It’s not too late as there are still tickets available ... just click here.” 

Receiving this email brought two thoughts to mind. My initial reaction was whether my ticket booking has been successfully completed. The second thought was why their two systems (booking and marketing) aren’t integrated, preventing me from receiving emails that are misleading and misinformed. Fortunately my booking was successful so I will be able to see Skyfall unimpeded. I did however email Odeon to question the marketing message and as of yet, have not received a response.

There are important lessons to be learnt from this experience for customer contact and service professionals.

1. The data that you collect should be used to shape your customer communications; ensuring that if you are going to use marketing emails, that the messaging is accurate and relevant to the recipient.
2.  If you are going to request information from your customers it is important that you use it effectively to deliver personalised marketing and communications.
3. There is significant value in linking up your data systems, not only does this allow you to avoid such mistakes, but creates additional opportunities to cross and up-sell.
4. Companies need to be prepared for responses from customers, particularly if they get it wrong, answering their queries quickly and efficiently can minimise the negative impact.
5.  Ignoring the value of integrating data systems and communications can be detrimental to brand image.

Whilst this may only be a relatively minor mistake in delivering an integrated marketing experience to customers, it does highlight to companies the confusion and negative impact a mistimed or misinformed communication can have. It will not however limit my enjoyment of the film, even if the booking experience was compromised.

Getting the Most from Loyalty Scheme Data

As the economic climate drives customers to hunt better and better deals, loyalty schemes have become an increasingly popular way to gain discounts and special offers. But while loyalty card schemes offer a wealth of data about customers, using this data to its greatest potential remains a challenge for many companies, as does building true loyalty and brand commitment.

 These challenges have been highlighted in recent research pieces. A Forrester report found that 40% of chief marketing officers are disappointed with the “erratic” performance of their brand loyalty schemes. Similarly, a report conducted by The Logic Group and Ipsos MORI argued that while over two thirds (68%) of consumers are members of supermarket loyalty schemes, less than half (47%) actually feel loyal to their supermarket.

Successful Loyalty Schemes

That is not to say that loyalty schemes are wholly unsuccessful, many companies aspire to replicate the two most dominant schemes today; Tesco’s Clubcard and the Nectar points system. These stand out not only because of their size and reach but because they have permanently influenced the way customers behave and built long standing brand/customer relationships. Achieving a scheme as popular as either of these is unrealistic for most businesses, but through intelligent use of data, it is possible to run a loyalty scheme that drives significant revenue and profits.

What should a loyalty scheme do?

Ultimately a loyalty scheme must offer strong financial rewards and a clear value exchange for the customer. It must also differentiate itself from the myriad schemes out there and ideally provide customers with targeted offers relevant to their behaviour and interests. Naturally the ways you manage your data are key to achieving this.

Research from LinkShare states that 41% of customers have purchased something online that they would never have bought directly because of a voucher or special offer, showing the value of communicating the right deal, at the right time. Such results can be accomplished through effective data management, which can also help to improve customer retention, increase customer engagement and brand commitment through relevant communication. (Read more about The Value of Data Management).

What it shouldn’t do?

Loyalty schemes are not an excuse to bombard customers with offers and are not an extension of your mailing database. Customers join schemes because they want to be rewarded for their purchases and repeat custom, not because they are interested in every sale or offer you are running. As such, a different approach to communication is required, motivating loyal customers to purchase more regularly by clearly stating the rewards they can expect as they collects points, interspersed with offers directly relevant to their data profile.

 

Intelligently using loyalty data

A loyalty scheme has the potential to gain detailed information about your customers and can help you to engage, build trust and loyalty. This is only possible however through effective data management and responsible, intelligent use of data.

In order to get the best out of your loyalty scheme it is important to make sure your data is kept up-to-date and relevant, as this can help gain your company valuable customer insight. Insight that is crucial for understanding which customers to target, when to target them, what rewards are relevant, as well as their behaviour patterns and interests. Do this effectively and you will see an increase of customer loyalty through building a successful loyalty scheme.

If you are interested in the role data has to play in understanding your customers, why not take a look at our Why Data Management is Vital to Customer Insight blog?