{"id":937,"date":"2025-04-06T08:50:24","date_gmt":"2025-04-06T00:50:24","guid":{"rendered":"https:\/\/www.biworldwide.com\/en-ph\/?p=937"},"modified":"2025-04-06T09:10:33","modified_gmt":"2025-04-06T01:10:33","slug":"personalizing-channel-loyalty","status":"publish","type":"post","link":"https:\/\/www.biworldwide.com\/en-ph\/our-work\/blog\/personalizing-channel-loyalty\/","title":{"rendered":"Personalizing channel loyalty"},"content":{"rendered":"
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\n\t\t\t\tPersonalizing channel loyalty\t\t\t<\/h1>\n\t\t\t\t\t\t\t

\n\t\t\t\t\tThe path to AI\t\t\t\t<\/h2>\n\t\t\t\t\t\t\t\t\t\t
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When it comes to loyalty programs, personalization is key. The more personalized, the greater the outcomes.<\/p>\n\n\n\n

Both engagement and business results benefit at higher rates. Because of that, we start thinking about personalization right from the beginning, during program design.<\/p>\n\n\n\n

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First, we create a program unique to the target customers\u2019 needs and interests, an approach also known as idiosyncratic fit in behavioral economics. This personalized tailoring helps customers feel as if they have an advantage as they pursue maximum rewards and benefits. It encourages them to keep using the program.<\/p>\n\n\n\n

From there, we add a layer at a time. At the foundation, both the core-program rule structure and earning schedule should be based on customer-specific purchase characteristics. For example, rewarding customers for year-over-year progress is much more effective than rewarding for an average or one-size-fits-all target.<\/p>\n\n\n\n

Next, promotions should target and trigger based on, ideally, the \u201cnext best action\u201d<\/strong> for each individual customer. For example, targeting promotions based on voids in a customer\u2019s purchase history or complementary products tied to initial purchases. Finally, content and communications should target and trigger based on customer-specific profile information.<\/p>\n\n\n\n

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Program Rule Structures That Create Idiosyncratic Fit:<\/h3>\n\n\n\n

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\n\t\t\t\t\t\t\tTargeted and Triggered Content and Communications\t\t\t\t\t<\/h3>\n\t\t
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\n\t\t\t\t\t\t\tRewards That Align With Customer Characteristics and Preferences\t\t\t\t\t<\/h3>\n\t\t
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Knowing that personalization is critical to a program\u2019s success, it\u2019s not surprising that many are now interested in exploring artificial intelligence to help optimize and automate elements of personalization throughout loyalty campaigns. However, because AI relies on customer data, many companies are not in a position to effectively use it. This is especially true in the channel loyalty space. The good news is there are other options that allow you to take the first steps and build a path to AI.<\/p>\n\n\n\n

AI is used in many ways, so it\u2019s important to note that the AI we\u2019re talking about here is the application of advanced computer analysis using techniques that mimic human intelligence to interpret data, determine outcomes, learn from previous interactions, and execute actions. With the ability to scale at massive rates and quickly distill complex variables into simple, applicable formats, AI is an ideal tool for generating fast, accurate personalization.<\/p>\n\n\n\n

Here\u2019s an example of a loyalty program for restaurant owners sponsored by a food service company that shows how to integrate AI into a loyalty program. In this scenario, AI would identify the \u201cnext best action\u201d or promotion for each individual restaurant based on consideration of a number of different variables:<\/p>\n\n\n\n