For Acquiring & Growing Your Customers

CONSIDERING CRM

& LOYALTY

When marketers are

considering their approach to

building direct customer

relationships, they often look at

CRM and loyalty initiatives as

separate disciplines, with their

own teams, tools and

technologies. In the best

consumer-centric organizations,

however, CRM and loyalty work

in concert to engage a broad

range of consumers and

develop deep relationships.

It’s impossible for businesses to

attract all their customer into

their loyalty program. In fact,

customers are only active in 7

loyalty programs, on average;

they are selective and only

commit to engage with the

brands they love the most. CRM

plays a critical role here in

allowing businesses to develop

a quick relationship with

customers by delivering value

through relevant

communications and offers.

Loyalty builds on the

relationship initiated through

CRM strategies and creates a

deeper connection with your

most valuable customers.

When considering CRM and

Loyalty, we focus on 6 key

attributes:

➢ Acquisition: Acquiring new

members to the brand

➢ Value Exchange: A

mutually beneficial value

exchange between the

brand and the customer

➢ Data Capture: Capturing

data to provide the most

relevant and personalized

experience

➢ Engagement: Forming an

attachment between

customers and your brand,

even between purchases

➢ Driving Spend:

Opportunities to drive

transactions (purchases)

with your brand

➢ Personalization: Creating

and maintaining relevant

connections

Introduction

© 2019 Aimia. All Rights Reserved.

Acquisition

HighLow

Value Exchange

A differentiated loyalty program can attract

discerning and high-value prospects to

your brand

The true value of the loyalty program is in

its ability to engage, retain and grow

target customers over time

LOYALTY

Frequently used as a high-volume

customer acquisition tool

Collect email addresses or mobile

numbers from interested buyers to create

a set of pre-qualified 'leads' that can be

nurtured to first purchase with rich

acquisition offers (i.e. 20% off your first

purchase)

CRM

Loyalty members have a high acceptance

for sharing more information, including

personal, transactional and behavioral

data, in exchange for exclusive benefits,

more personalized offers & promotions

and the ability to earn rewards through the

accumulated value of their purchases

LOYALTY

Lower implied value exchange than loyalty

CRM

Acquiring new members to your brand Mutually beneficial value exchange

between your brand and your consumers

While CRM can be leveraged to draw in a large audience through immediate

gratification, Loyalty relies on a long-term commitment and high value

exchange to attract, grow and retain customers.

Key Takeaway

Requires basic customer contact

information (i.e. email) in exchange for an

expectation of ongoing communication and

non-exclusive offers/discounts

© 2019 Aimia. All Rights Reserved.

Data Capture

HighLow

Engagement

Greater opportunity and expectation for

data capture to drive incremental

purchases by leveraging...

• Rich profile data & contact information

• Purchase preferences

• Longitudinal transaction & omni-

channel interaction history

• Earning & redemption activity

• Householding data

LOYALTY

Enable an understanding high level

customer data such as...

• Customer interests and preference

(e.g. which subject line gets them to

open email)

• Basic contact information

• Multi-channel interaction history

• Direct transaction history (e.g.

ecommerce)

CRM

Stored value of loyalty currency creates a

strong bond between brand and consumer

Loyalty constructs offer substantial ability to

influence customer engagement and form a

long-term, two-way relationship

LOYALTY

Ability to drive engagement through

scheduled, recurring and triggered

communications across multiple channels

Primarily an outbound marketing relationship

CRM

Capturing data to provide the most

relevant and personalized experience

Forming an attachment between customers

and your brand even between purchases

With CRM and loyalty, brands can understand what drives interest, intent and

action to engage and purchase. Using this data, brands can further personalize

to drive spend. The data that is captured should inform CRM and loyalty

initiatives, communications and the value proposition customers experience to

drive higher customer engagement.

Key Takeaway

© 2019 Aimia. All Rights Reserved.

Driving Spend

HighLow

Personalization

Multiple tools to drive spend including

bonus offers, instant rewards, promotions

and discount offers

Ability to segment members by RFM,

transaction history, product preferences

and predictive models to deliver the right

offer at the right time

LOYALTY

Non-exclusive discount offers and

promotions are the key drivers of spend in

a CRM program

Ability to segment members based on

communication engagement (i.e. use

what the customer is opening in an email

to further tailor the next email that will

make a purchase)

CRM

Personalization is based on...

• Collected data in member profile

• Transaction & interaction behaviors

• Product-based segmentations

• Earning & redemption behavior

• Emotional brand engagement

LOYALTY

Personalization is based on...

• Collected data in member profile

• CRM response history

CRM

Opportunities to drive purchase

transactions for your brand

Creating and maintaining relevant connections

CRM and loyalty are both levers in driving incremental spend. In order to

effectively increase customer spend, CRM and loyalty should implement a

personalized approach and only send customers communications that are

relevant to the customer based on their preferences, interests and engagement

history.

Key Takeaway

© 2019 Aimia. All Rights Reserved.

SUMMARY

CRM and Loyalty can be used together to create deeper connections

with your customers. Instead of viewing them as an either/or, or viewing

them as separate strategies, view them as partners who are working

towards the same goal: building authentic and personal relationships.

The two partners excel in different attributes. CRM creates breadth –

cast a wide net to reach a large quantity of customers. Loyalty creates

depth – dive deeper into relationships with customers who are

committed to creating richer connections with you. Together, the two

allow you to build connections that expands wide (reaches a lot of

people) and goes deep (builds valuable connections with customers).

Acquisition

Value Exchange

Data Capture

Engagement

Driving Spend

Personalization

Cost Low-Medium Medium-High

Summary

CRM Loyalty

HighLow

© 2019 Aimia. All Rights Reserved.

ABOUT AIMIA LOYALTY SOLUTIONS

Brittney Brown is a loyalty consultant with a passion for

understanding consumer behavior. Before joining Aimia,

she gained experience working in CPG, retail, marketing,

and advertising industries. Her blend of previous work

experience allows her to bring a unique perspective to the

loyalty marketing landscape.

© 2019 Aimia. All Rights Reserved.

ABOUT THE AUTHOR

Aimia Loyalty Solutions is a globally recognized leader in full-service

loyalty solutions for leading Retail, CPG, Travel & Hospitality, Financial

Services and Entertainment.

At Aimia, we make business personal. As a customer-centric

organization, we help brands identify and target key customer segments

to deliver personalized brand experiences. Our SmartJourney®

methodology takes a holistic approach where each brand interaction is

designed to create a meaningful moment that drives advocacy and

long-term customer growth. Through our people, proprietary

methodologies and leading technology, we deliver personalized

experiences with predictive results for global brands.

Create the personalized journey your customer wants. Find out more at

www.aimia.com or email us at loyalty@aimia.com.