Maximize customer lifetime value with loyalty program and personalization across the lifecycle
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Right from the time an individual lands on the website for the first time, you can start personalizing to help exploration, build conviction, and drive cross-sell. You can also incentivize them to enroll in the loyalty program, and move up loyalty tiers – all with the objective of maximizing lifetime value, beyond the current purchase.
Here we see how we can personalize right from the time a shopper lands on the website for the first time to motivating them to sign up for the loyalty program and drive repeat purchases. Alice considers herself a fashionista and she is looking for a very special outfit for an upcoming event. She’s heard that Sorento has a unique branded luxury evening wear collection, and she is intrigued to find out more. She has seen some promotions on Facebook, and decides to head over to Sorento to check out their products. As soon as Alice lands, she sees a banner title, welcome to our Facebook friends. And immediately the 10% discount on her first order catches her eye. She also notices that there is a Sorento loyalty program, and she decides to check that out later. She is also greeted with free shipping that’s available to US based customers.
Even if we know nothing about her yet, we understand a few things where she came from and her path to landing on Sorento’s homepage, and we know her geolocation based on her IP address where she is based. It’s all about maximizing marketing campaigns currently in place by Sorento based on these details.
Alice goes to the women’s category and clicks on dresses. The category page emerges and that is powered by the ranking algorithm of our browse solution Discover. Since Alice is new here, we use wisdom of the crowd to show a range of dresses that are currently trending. She looks at multiple dresses.
For example, this nice off shoulder evening dress by Alexander McQueen, and also explores other dresses that appeal to her. She views another one and incidentally even that is from Alexander McQueen. As she clicks on these we are building a personalization profile of Alice to understand her better and know what her affinities are. It looks like she is looking for some unique and edgy styles and gravitating towards the red dress. As she scrolls down on the product page, there are other sections that are aimed at helping her decide between dresses and also complete the look with accessories.
The Sorento junky section has some complimentary items such as Bejewelled snake ring, and a beaded necklace that are based on our understanding of Alice’s personal taste. The last placement on the page is aimed at driving cross sell and leverages advanced merchandising-based recommendations to guide Alice through her shopping trip. She searches a bit more and feels convinced about her choice, she decides to go ahead and add this dress to her cart. What you’ll notice is as she adds it to the cart, she is reminded of the Bejewelled snake ring that complements her dress. And she decides to have a look at it. It matches her style, and is just the look she is going for. So she adds it to her cart. She thinks she is done with her shopping. She’s got the perfect dress and accessory for the event. So she decides to check out and she gets to the cart page and sees her current total at $3,500. Alice is reminded about the loyalty program, and that is slightly higher spend of $4,000 automatically qualifies her for the bronze tier. She is keen on this. And on the same page, she can see some relevant products.
One of the things she hasn’t looked at is footwear, the app was or a pumps look interesting, and she decides to have a closer look. She loves it instantly, and it complements her selected dress rather nicely. She adds it to the cart and is now over $4,000 the reminder for the loyalty program enrolment has vanished. Alice is very happy with her shopping and decides to check out.
What we have seen here is that personalization is not only looking at the current marketing program to incentivize her and increase the basket size. But we have done that by using the loyalty program. We want to maximize not just the current order value, but also customer lifetime value by having Alice as a loyal returning customer. Alice attends the event and returns to the Sorento website a few days later. And this time, the experience is different. Why? Because we know she purchased a dress last time. On the homepage, we welcome her as a bronze customer. And we also recognize that she’s entitled to a 10% Loyalty discount on her next purchase. And we have personalized the banner for her. To summarize, we knew nothing about her. And with every click and search. We started learning about her and created her profile to personalize all the phases of her journey. Homepage, category page, Item Page, and cart page. We keep her engaged, increase sales and drive customer lifetime value by continuing to incentive advise her on to move from bronze to silver and gold status tiers.
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