Most Popular in:


Email This Item! Print This Item!

The Beauty of Data-driven Loyalty

By: Naomi Kasolowsky
Posted: March 24, 2014, from the April 2014 issue of GCI Magazine.


page 2 of 2

So broaden your perspective. Consumers hold four currencies they can dedicate to a brand: Spend, Talk, Engage and Prefer. Referred to as STEP, each action demonstrates the multiple dimensions of loyalty at a very personal level. For marketers, the value of STEP is that it can be measured.

Creating a Holistic Loyalty Strategy

Using the STEP model, loyalty planning becomes a strategic process involving the entire organization. The qualities you want the brand to represent are defined and translated company-wide. Every consumer touchpoint is managed toward the same vision.

The evaluation of consumer growth considers all they do. This enables significantly more personal loyalty-building programs. For example:

  • High Spend customers with low Prefer scores might indicate there’s a problem that could cause them to leave the brand. Evaluating their Talk could uncover what’s driving that issue.
  • High Engage customers with low Spend might be considering the brand but need a little extra incentive, in the form of a promotion, to make a purchase.
  • High Talk and high Prefer customers might make outstanding brand advocates given the opportunity, even if their Spend isn’t the highest.
  • High Spend and Engage but low Prefer customers might welcome the opportunity to provide feedback and a discussion about a concern.

Data-Driven, Customer Centric

For beauty marketers, building loyalty should no longer be a low-response, low-return initiative. Consumer data can drive every decision so communications are precisely targeted and completely customized for each consumer in real time. Every action can be captured and measured, and thus optimized for the consumer. With improved relevance comes higher responses, stronger sales and widespread advocacy.

If you put the consumer at the center of every business decision, you’re on your way to earning true loyalty. If you don’t, there are countless competitors in the beauty industry who will. Can you afford to resist?

Naomi Kasolowsky, global capability director for loyalty, leads the development of dunnhumby’s retail and brand loyalty vision and enabling capabilities. Before joining dunnhumby, Kasolowsky was senior director of consulting (EMEA) for Satmetrix, the co-developers of the Net Promoter measurement system. Kasolowsky also spent 12 years at Accenture, where she created Accenture’s global loyalty offerings and helped clients to better understand and measure the customer experience. Her actionable growth strategies across acquisition and retention levers have created large scale value for her clients.