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Love the Ones You're With: The Importance of Loyal Customers

By: Lisa Katz
Posted: May 30, 2013, from the June 2013 issue of GCI Magazine.

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Digital strategies are often tackled channel by channel, and, therefore, marketers can face significant roadblocks in proving accountability and driving loyalty from these programs. A consumer-centric approach, or identifying consumers and their preferences first, improves effectiveness across channels. Consumer data allows marketers to connect the performance of marketing tactics to individual consumers, not just gain aggregate insights via sales data, research or panels.

Insights gleaned by analyzing consumer behavior can inform marketing and media plans and offer a critical link to optimize a brand’s marketing mix. If a marketing campaign delivers targeted messages, pricing and products to a brand’s loyal consumers based on their unique buying patterns, it helps to increase response.

Also, measurement of campaign responsiveness continues to evolve allowing for analysis at a granular level. Consider the key foundation category—marketers are now starting not only to ask but to be able to answer questions such as: Which of my loyal consumers only purchase foundation from my brand in stores? Which consumers purchase foundation from my brand in stores and then replenish online? Which consumers switch foundation shades or formulas seasonally?

While the volume of data available may be complex, the possibilities to target these unique consumers based on their behavior is considerable.

The Rewards

In addition to helping brands and retailers to be relevant and reward loyal consumers/customers, consumer data allows brands to respond quickly to shifts in consumer behavior over time. It gives brands a more accurate tool to define and understand true customer loyalty and how to drive more of it. It’s time to identify who matters most to a brand and generate actionable strategies that help optimize marketing spends so the right messages, products and promotions go to the right consumers at the right time.

Lisa Katz is vice president of client management at dunnhumbyUSA and leads the company’s client engagement with fashion apparel, footwear, accessories and beauty manufacturers in collaboration with Macy’s. Before joining dunnhumby, Katz spent her career in merchandising, brand management and product development within beauty and apparel, working for Bloomingdale’s and Victoria’s Secret Beauty. In addition, she served as vice president, marketing and development at Jonathan Product, an entrepreneurial prestige hair care brand where she led the marketing strategy and product development for global distribution. Katz is an active member of Cosmetic Executive Women (CEW), and she earned an MBA in marketing from Fordham University and a bachelor’s degree in communication from the University of Michigan.