Building Data-Informed CPG Loyalty Programs

04.11.23 By

With 2.5 million US online retail options at consumers’ fingertips, CPG brands need to provide unique incentives to keep customers coming back. While there is no shortage of CPG loyalty programs, brands can set themselves apart by creating loyalty and rewards incentives tailored to their offerings. Our creatives at DEFINITION 6 are here to help you build a loyalty program that engages and retains customers, driving your revenue to new heights. 

What are CPG loyalty programs? 

Loyalty programs are systems created by CPG brands to improve customer engagement. These programs usually consist of rewards, cashback, occasional discounts and sales, shipping perks, and apps. Brands like Sephora, Rakuten, Starbucks, and Delta Airlines have all created some of the most popular and successful CPG loyalty programs to date. What makes their programs special? They leverage their existing customer behavior against their already unique brand to design data-informed programs. 

For example, Sephora is known for having various luxury beauty, hair, and skincare products all in one place. With their Beauty Insider loyalty program, they fully integrate their products with customers, offering free samples on favorite brands or new items after $XX purchase, a tiered points/rewards system, and even special communications via newsletters, push notifications, and texts. This gives the customer something to constantly strive for and look forward to. Therefore, they continue to click, come back, and buy. 

How to build a strong loyalty program 

At DEFINITION 6, we understand the solution to any brand’s dilemma also lies within the brand itself. Building a lasting CPG loyalty program starts with the existing data. We take a deep dive into a brand’s current numbers, then consider what information is still needed to make improvements.  

According to Business Wire, 74% of consumers want a loyalty program that makes them feel valued and understood. The 2022 Merkle Loyalty Barometer Report reveals 79% of consumers want discounts on a brand’s product or service, and 65% want freebies. Brands can accomplish this by getting to know their customers. Loyalty programs have a better chance of impact when they are based on first-party data, gathering personal information (within reason) to create personalized offerings for each customer. First-party data includes names, birthdays, email addresses, phone numbers, product specifications, and product preferences. Building CPG loyalty programs based on this unique information keeps members committed and engaged because the brand is actively tailoring to their interests. 

DEFINITION 6 does the heavy lifting of this process for you, giving brands more insight into customers and what they want. From there, we help brands like you develop a program with unique offerings to ultimately increase sales. Contact us to learn more about the loyalty programs we build for our CPG brand partners. 

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