How to Build the Best Data-Driven Customer Loyalty Program

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Some people might make the assumption that the most important part of a successful business is constantly generating income via new customer acquisition. In a sense, they’re right but it isn’t just about new business, it’s about creating a relationship with your customers so that they come back to you again and again. To retain customers, businesses need to establish a great loyalty program.

The key to creating a loyalty program that not only retains your current customers but also attracts new customers is understanding who your customers are, what they want, and what they’re going to want in the future. Although this may sound like a monumental task for market researchers — especially when the only real data you have on your client’s customers is limited to demographic data — it doesn’t have to be. Location intelligence can help market researchers get real-world data to help their clients build out a successful loyalty program.

In marketing, real-world data is key. Customer loyalty programs and the whole customer experience need this one simple ingredient to take it up a notch: location intelligence. With location intelligence, you get to know who your audience is on a whole new level.

For example, let’s say that your client is a popular home goods brand. You are trying to build a great loyalty program but your client doesn’t don’t know what your customers want, especially after 2020. You decide to flex your market research muscles and put that new location intelligence solution to good use. With it, you are able to determine that your customers are really into gardening events, coffee shops, and regularly shop at the health food store down the street. They also really enjoy attending yoga studios and pilates establishments. What can you determine about your client’s customers through this information? They are particularly interested in self-improvement and physical health.

You are able to give your client data to help them craft a loyalty program that incorporates discounts on juicers and other cookware that promotes a healthy lifestyle.

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What are Competitors Doing Differently?

Keep your friends close but keep the competition closer. What do we mean by this? If direct competitors seem to be able to retain their customers effortlessly, location intelligence can tell you why. Running a competitive analysis can help identify customer pain points and then adjust shift your loyalty program strategy to remedy these problems.

Let’s hop back into that home goods store example. The competition does a decent job of retaining their customers through seasonal sales but they don’t realize that there is a gap in their customer experience strategy: a rewards program that will bring back current customers off-season. You also notice this gap during your market analysis. Based on the results of this real-world data analysis, the home goods store launches a campaign that reaches customers who might be interested in joining the reward points program.

Stay Ahead of Trends

Location intelligence provides marketers with a detailed view of how their audience moves around in the world. This gives market researchers the ability to stay ahead of upcoming trends and help their clients get ahead of their competition. To learn more, book a meeting with us today.


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