The holiday season is the time to show those closest to you that you care. Holiday shoppers select gifts to show their loved ones appreciation and affection, and companies must do the same for their loyal customers.
US shoppers want offers tailored to them …
Fifty-four percent of US online adults say that receiving offers that are tailored to their preferences or available only to them is a key reason they join loyalty programs, per Forrester’s Retail Topic Insights Survey, 2023. When used effectively, personalization can deliver value to loyal customers. To do so, companies should leverage loyal customer insights to tailor moments, such as reward redemption and surprise and delight offers, to customers’ unique shopping habits and preferences.
… but to succeed, ground your personalization tactics in customer values
A personalization tactic is only as good as the value a customer gets from it. But consumers still have mixed feelings about personalized interactions from companies. This holiday season, use personalization in your loyalty program to allow customers to realize value across four dimensions (see Figure 1 below):
- Economic value. Personalized offers and promotions help customers save money through the holiday season heavy spending blitz. For example, retailers might offer their most loyal customer segments free expedited shipping so that program members in a pinch can get gifts to their loved ones before holiday celebrations.
- Functional value. To reduce decision fatigue, implement product and service recommendation tools to help consumers make an easier choice. For example, you could offer personalized shipping and in-store pick-up options to get customers their purchases quickly and encourage them to redeem rewards by granting early access to those products with program points.
- Experiential value. Seventy-four percent of US online adults who belong to customer loyalty programs say they are more likely to participate in a loyalty program if brands make it easy to use. If shoppers go to brick-and-mortar stores, ensure that in-store customers (and the store associates helping them) can access their personalized program benefits or rewards while checking out through point-of-sale systems or on their mobile phone.
- Symbolic value. Use personalized moments to show customers that you understand and appreciate them. For example, a retailer may surprise and delight customers with personalized thank-you notes for shopping with them, an acknowledgement of how long they’ve been a loyal customer, and/or offers for future purchases in the new year.
Figure 1: Use Program Personalization To Deliver Four Types Of Customer Value
Be sure to read our new report, Use Personalization To Activate Loyalty Program Value, for more specifics on how to get personalization in loyalty programs right this holiday season.
Forrester clients should feel free to schedule a guidance session or inquiry with us to continue this conversation! And stay tuned for our upcoming “The State Of US Consumer Personalization, 2024” report, publishing in November, for more insights on how consumers really feel about personalization.
Happy holiday planning!
