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Learn more about loyalty programs and first-party data, by watching Ralph Browning's presentation at The Advanced Customer Loyalty & Retention Conference.
Why it matters?
As cookies and third-party identifiers disappear, brands recognise the critical role loyalty programmes play in collecting first-party data. That's why they're putting greater emphasis on this strategy. 92% of marketers consider first-party data vital to understanding their audience, and Deloitte forecasts that brands will increase their first-party data usage by 61%.
But how should brands structure their programmes to gain the data needed to drive insights, engagement, and influence?
Based on our experiences working with brands, here are the lessons we have learnt when seeking to develop a loyalty programme.
A prime example of an evolving loyalty programme is .
Traditionally based on collecting coupons, changing consumer interests and a desire to acquire more first-party data have led to it being revamped.
Incorporating an easy sign-up process, the focus was to maximise the number of programme participants. And a changed reward structure offered monthly rewards based on collecting tokens. However, these are not solely spend-based but could be gained by completing surveys, joining in games, watching videos, or providing likes. All these vehicles offered up more ways for Kellogg's to gain additional consumer insights.
Additionally, allowing receipt scanning on mobiles also revealed insights into individual consumer spending patterns and timings. Sharing these insights with supermarkets to enable them to offer incentives to relevant audiences meant the programme became more impactful and valuable.
The bottom line
While consumers are sensitive to sharing their information, they are comfortable exchanging their data via a loyalty programme. Indeed, 76% of consumers say they are reluctant to do this, unless it's tied to a loyalty programme. This makes these schemes a method not only for customer insights, reducing churn and cross-selling but also for acquiring critical first-party data that is valuable for driving future marketing.