Digital customer loyalty and reward programmes have been an integral part of strategic marketing to foster brand loyalty and repeat purchases for decades. However, they’ve recently hit a roadblock. Traditional loyalty programmes often face challenges such as high costs, limited differentiation, and data privacy concerns. The emergence of Private Personalisation, powered by Zero Party Data, Personal Data Stores, and personal AI, offers innovative solutions to address these issues.
At DataSapien we have been approached by major customer centric businesses to help upgrade their loyalty and reward offerings with our Private Personalisation capabilities. The team created a quick list to show how Private Personalisation can help marketers overcome the most common problems:
1. High Costs:
Traditional loyalty programmes can be costly to implement and maintain. With Private Personalisation, brands can leverage Zero Party Data collected voluntarily and directly from customer’s own Personal Data Store. By accessing this valuable data and using personal AI, brands can create better aligned and cost-effective loyalty experiences, increasing efficiency, reducing overall program expenses and creating more value for all participants.
2. Complexity and Lack of Transparency:
Private Personalisation simplifies the customer experience by leveraging contextual data from Personal Data Stores to offer transparent and relevant recommendations. This reduces complexity and ensures customers understand the value they receive from the loyalty programme. Simplicity and transparency engender greater trust and participation.
3. Limited Differentiation:
By utilising Zero Party Data, brands gain deep insights into individual customer preferences through Personal Data Stores. This allows them to create unique and personalised loyalty rewards and experiences, setting them apart from competitors and enhancing differentiation. Real-time interaction with data opens possibilities for co-creation both with and between members. This establishes the programme as a mutually beneficial customer community.
4. Ineffective Incentives:
Zero Party Data enables brands to understand customers’ interests and preferences better. With personal AI, brands can tailor incentives and rewards that align with individual preferences, in context and even in the moment, ensuring they are more effective in motivating customer engagement. We’re already seeing a 25% uplift in engagement with early deployments.
5. Inactivity and Non-Redemption:
Through Private Personalisation, brands can move beyond diminishing cycles of ‘earn & burn’ interactions, to engage customers with personalised and timely offers based on their preferences, and even in-the-moment context. By ensuring the relevance of offers and next best actions, Personal AI proactively recommends relevant rewards, reducing inactivity and encouraging higher redemption and activation rates.
6. Data Privacy Concerns:
Respecting customer privacy is a foundational aspect of Private Personalisation. By utilising Zero Party Data and Personal Data Stores, brands can assure customers that their data is anonymous by default and that it is used solely for personalisation within the loyalty programme, fostering trust and addressing data privacy concerns. Sharing of data with partners is offered as a valuable option to unlock additional experiences and opportunities. Data shared is controlled and recorded in the members personal digital wallet.
7. Short-Term Focus:
Personal AI in Private Personalisation can predict future customer preferences through the analysis of the members Zero Party Data, their 360º life data. This enables brands to anticipate long-term trends and personal needs to deliver personalised experiences that go beyond short-term transactions, nurturing lasting customer relationships. Crucially, this AI processing happens locally on the members device. Over time, they build a dynamic and ever-enhancing profile for themselves, which delivers increasingly better tailored outcomes. A personal agent that is theirs and deeply understands their current and future needs.
8. Negative Customer Experience:
With Private Personalisation, customer interactions become contextually relevant, joined-up. They connect seamlessly across multiple-channel touch-points and throughout customer journeys. The 360º Life Data stored privately in the Personal Data Vault means that Personal AI can provide frictionless experiences, enhancing customer satisfaction and ensuring a positive ongoing loyalty programme experience.
9. Program Abuse and Fraud:
By leveraging Zero Party Data and Personal Data Stores, brands can authenticate customer information more effectively, reducing the risk of program abuse and fraudulent activities. Edge-AI running locally on the members device can flag anomalies without needing to share the underlying personal data. These ‘veracity scores’ for identity and identity attributes create an accurate single source of truth, at source.
10. CX & Over-Reliance on Price-Based Incentives:
Private Personalisation shifts the journey from transactional to experiential; from solely offering transactional, price-based, incentives to providing deeply personalised experiences. By understanding individual preferences, brands can engage customers through tailored recommendations, moving beyond price considerations and transactions to experience driven engagement. The loyalty programme helps to orchestrate connected life moments revolving perfectly around the customer in the moment.
Future Potential: Private Personalisation and Personal Generative AI Models:
The future potential of Private Personalisation is exceptionally promising. As personal AI evolves, it will lead to the development of personal generative AI models on the edge. These models will be capable of predicting future customer preferences, creating a hyper-personalised loyalty experience.
A New Era of Customer-Centric and Ethical Personalisation:
Private Personalisation marks a new era in customer loyalty programmes, where data ownership, privacy, and customer-centricity take centre stage. By seamlessly integrating Zero Party Data, Personal Data Stores, and personal AI, brands can offer highly personalised and relevant loyalty experiences while ensuring data privacy and, most importantly, trust.
Private Personalisation is the future of customer loyalty programmes. By harnessing the power of Zero Party Data, Personal Data Stores, and personal AI, brands can overcome the common problems faced by traditional loyalty programmes and create a loyalty ecosystem that fosters trust, engagement, and co-creation. By embracing the paradox of requiring both more privacy and more personalisation we can pave the way to an era of loyalty programmes that resonate deeply with customers, all while respecting their privacy and individuality to drive sustained customer delight.
For more on Private Personalisation and the evolution of a new, human centric, Marketing Cycle — read the DataSapien Blog and DataSapien on medium.
The DataSapien platform combines Personal Data Stores, Zero Party Data and Personal AI to form advanced, modular, Human Data Loyalty ecosystems. It augments a business’s existing customer data stack to drive delight, better life outcomes and mutual lifetime customer value.
