The latest in results-based rewards news

How hypersegmentation can achieve reward personalisation at scale


You’re here because your loyalty program needs an overhaul.


We have just the solution for you.

Your traditional loyalty program is no longer driving the results you’re used to seeing. This is not surprising considering that humans, technology and behaviour science are constantly progressing.

“Did you know it costs a business about 5-25X more to acquire a new customer than it does to sell to an existing one? Not only that, but existing customers spend 67% more than new customers. In short, customer loyalty really pays off…”

So, what is your brand doing to ensure that customers return to your brand or business?

A recent study has found that the average person is involved in more than 14 customer loyalty programs, but that they are only active in about half of them!

So, what’s the problem, why the disengagement?

Well, quite simply the evolution of technology and its application to our lives has made the world a much smaller place.

Also, customer behaviours have shifted dramatically in recent times. Customers are more empowered and educated than ever before. They require considerably less input from sales staff before making purchase decisions.

How do you make your brand stand out despite this shift?

Enter Big Data. Let’s take a look at how this phenomenon infiltrates our lives on a daily basis;

Netflix - oh the hype of on-demand streaming! But how great is it that it “automatically” points you towards shows of similar viewing for your convenience?

Netflix uses your viewing history to curate lists of shows you should watch and also sends you reminders of new episodes about to hit your screens, so you don’t have FOMO at the office the next day!

How thoughtful. Thanks, Netflix!

Is there ROI in this though? “Netflix says that its recommendation system saves the company $1 billion every year!” Pretty significant, if you ask me!

This act of personalisation happens so frequently, that it’s become a new life norm. Customers are increasingly expectant of this type of messaging and convenience. It creates a sense of loyalty far beyond the generic mailers you receive from brands that fail to provide a personalised experience.

Is data application the solution to your loyalty program’s disengagement?

Appropriate and relevant data application has to be harnessed in order to develop a highly personalised and contextually-relevant experience for your customers.

The reality is that your customers want to be treated as individuals, whose loyalty matters. What we mean is that relational loyalty is the new imperative.

This may sound a little overwhelming. What you need to remember is that you have the data. So, it’s more about how you decide to segment it in order to create an experience that your existing customers will appreciate, talk about and recommend.

So, how do you create a loyalty and rewards program that’s relevant and personal?

Firstly, you need to deeply understand how you’re currently rewarding your customers. Are you rewarding them for brand profitability or influence?

Are you rewarding customers based on what and when they purchase or are you rewarding them with discounted offers based on how they promote your brand on social media or via email?

This data can be segmented in a way that allows you to determine which rewards are relevant to whom, and which channel is best for reward delivery.

Take a look at Pick n Pay’s smart shopper loyalty program; I receive personalised emails offering me discounts on items that I purchase frequently. It’s an offer exclusive to me. An experience that’s individually tailored and that leaves me feeling pretty chuffed with Pick n Pay as my grocery retailer of choice.

But what are the real benefits of a highly personalised, segmented reward strategy?

  • It can increase sales
  • It can enhance existing customer relationships
  • It can create a better overall customer experience
  • It can boost customer loyalty.

Sound like something your business can benefit from? Great, let’s continue...

Today’s customers are educated and empowered. They want to be treated as individuals. But does your reward strategy address this need?

If not, we have a few suggestions for you:

  • Engage with your customers to find out what sorts of rewards matter to them. This can be achieved through surveys, social media polls or even directly, through personalised and contextualised emails.
  • In this era of tech we need to learn the art of actively listening to our customers in order to provide this kind of nuanced and contextual personalisation.
  • Review and analyse your process and optimise it for further improvements.

Key takeaways

We’re in a new era, an era of data technology that should positively enhance your customers’ brand experience and set you apart from your competitors.

The key to this hypersegmented strategy is to truly (and deeply) understand your customers, to know their data thoroughly, and ultimately, to develop a strategy that will surprise and delight them. Then, hit repeat.


rewards drive ROI ebook cta

Emma-Jane Shaw

About Emma-Jane Shaw

Emma-Jane Shaw is the Chief Content Strategist for a digital marketing agency based in Cape Town, where she fuels her passion for writing, strategy and social media.

Previous Post 6 Best-loved rewards and the brands behind them

Next Post Why we love merchandise rewards