Growing Customer Lifetime Value with data

Targeted marketing communications have been available for decades but have been rather exclusively available to only those organizations with the best of systems and most importantly, the best of data.

You’ll want to consider personalized communication to improve customer retention, augment and assure customer satisfaction, support and facilitate cross-selling, and ultimately drive greater customer lifetime value (CLV).

Plenty of market research evidence suggests that personalized communications materially cement and augment the opportunities for an organization to galvanize a strong long-term relationship with the customer and accordingly drive greater CLV.  

with augmented data, there is also now the possibility to identify who the lower and higher-value customers are and identify characteristics and traits that allow improved segmentation leading to greater value growth potential.

When these same augmented data sets are combined with tools like machine learning and artificial intelligence to build predictive models, one is able to formulate strategies to migrate members of lower-value segments or groups to the higher-value ones.

The important fact to consider here is that personalized communication may be the important key. Once you’ve singled out members of lower-value segmented groups, and then embarked on communicating with them in a highly personalized way through direct marketing campaigns, only then are you likely to be able to promote them to the higher groups.

The marketing campaigns of course are not limited to letters in the mail, or personalized emails. Your product marketing mix would also leverage the other elements in the marketing library, namely social media and personalized web experiences. The objective here is to leverage the data to hone the product or service marketing, promotion, and advertising messaging to be very distinctive and almost unique for each and every customer.

Now more so than ever before, the smallest organizations can start to consider the use of the same tools and methods that much greater and older organizations have had at their disposal. Globalization and ready accessibility to the web has meant that any product can be sold almost anywhere where delivery services are possible, further, transparency in pricing, internet search, and aggregators like Expedia, Amazon, Etsy, eBay, and the like mean that customers will do price comparison.

The same products can also be offered in price-differentiated marketplaces if you know who you’re targeting. These benefits also mean that the competitive environment is also greater. Steps need to be taken to differentiate on message and service rather than relying exclusively on the product itself and possibly the dependence on the brand.

In the end, the strength of the relationship that your organization has directly with the customer will provide the best possible predictor for the CLV.

There are many affordable customer relationship management tools available including SaaS-based pay-as-you-grow offerings. Using these together with aligned Master Data Management solutions you are able to analyze and target the right customers and prospects with the right offers.

CLV and in turn, the profitability of each customer leads to measures of value that will be different for different customer groups. The identification of efficiency in the way the value is produced helps to direct an organization’s efforts.  This in turn leads to the refinement of the exact kinds of customers and business partners that your organization wants to expend effort and energy on. The profitability of the customer is the revenue derived from that customer less the costs of identifying, securing, retaining, and growing them. The same approach needs to be used for campaigns. The more compelling the proposition with the greatest possible efficiency, the highest potential profit can be secured per customer.

At Pretectum we believe that these insights and decisions can only be obtained and undertaken from the presence of good and comprehensive master data and we present the Pretectum CMDM as one of the ways to achieve that good master data from origination through controlled curation and distribution.

Your customer data in the cloud

The security of customer data in the cloud depends on several factors, including the security measures implemented by the cloud service provider, the security controls in place for the specific data and the configurations set by the customer.

When customer data is stored in the cloud, it is typically protected by a number of security measures, including: network, physical, encryption, access control, monitoring and auditing. When considering how you manage your customer master data, consider how all these aspects are being handled.

Cloud solutions like the Pretectum CMDM applications are housed in data centers that are secured with access controls, surveillance, and other physical security measures; we make use of the some of the best in class implement network security measures, such as firewalls and data encryption to protect your customer data as it is transmitted over the internet. This data is encrypted both at rest and in transit, to protect it from unauthorized access.

Access to your tenancy and actual data is strictly controlled through role based access controls (RBAC) to ensure that only authorized users can access customer data. In addition, we monitor and audit our systems for security incidents and the potential of attemp[ts to gain unauthorized access to customer data.

Pretectum believe that customer data stored in the cloud is often more secure than data you house in your own systems due to the investment that we make in security infrastructure and personnel, and the implementation of security controls and processes that are designed to protect customer data.

It’s nonetheless important for you to carefully evaluate the security measures we use, and implement additional security controls as needed according to your specific requirements.

Adoption of SaaS based CMDM like the Pretectum CMDM has a number of advantages over on-premise or even private-cloud MDM.

SaaS MDM is typically more affordable as it operates on a subscription-based model and eliminates the need for expensive or dedicated hardware and IT infrastructure The intent with SaaS MDM is to also easily scale up or down to meet changing business needs, making it an ideal solution for organizations that are growing or experiencing changes in the volume of their data.

This approach is also easier to implement and typically require minimal setup and configuration, allowing your organization to quickly realize the benefits of a centralized data management solution. We also continuously update and improve the solution, meaning that our customers always have access to the latest features and security enhancements.

The Pretectum CMDM is also accessible from anywhere with an internet connection, making it easy for employees to access and manage data from different locations and reference the centralized repository for customer master data, improving the quality and accuracy of data across the organization.

To learn more about how you can take advantage of the Pretectum CMDM, contact us to take advantage of a free trial evaluation.

Taking air travel and loyalty to new heights

Airline loyalty programs have become a ubiquitous feature of the aviation industry globally. Most airlines, even the budget carriers, offer loyal travelers a range of benefits, from earning miles towards future flights, to access to airport lounges and priority boarding and seat selection.

But where did it all start? Which airlines were the first to introduce loyalty programs, and how have they evolved since then?

British Overseas Airways Corporation (BOAC), which operated from 1940 to 1974, did not have a formal loyalty program as we know them today. However, the airline did offer various incentives to its frequent flyers and regular customers.

For example, BOAC’s “Comet Club” was a social organization for the airline’s most loyal passengers, which offered exclusive access to special events, promotions, and personalized service. Additionally, BOAC provided perks such as preferential seating and priority boarding to its regular customers.

Concorde, the supersonic jet operated by British Airways and Air France, did not have a formal loyalty program. However, the airlines did offer various incentives to their most loyal customers to encourage repeat business and maintain customer loyalty.

For example, British Airways Concorde Room at London Heathrow airport was an exclusive lounge for Concorde passengers and elite frequent flyers. The lounge offered a luxurious experience with personalized service, fine dining, and other amenities.

Additionally, both British Airways and Air France provided special benefits to their top-tier frequent flyer members, such as priority boarding and access to premium lounges. While these perks were not specific to Concorde travel, they may have been particularly appealing to customers who frequently flew on the supersonic jet.

It’s worth noting that the concept of modern loyalty programs, with their points-based reward systems and other features, did not become widespread until the 1980s and 1990s when American Airlines introduced AAdvantage, the first frequent flyer program.

This was a groundbreaking innovation, offering customers the opportunity to earn miles towards free flights based on the distance they flew. The program was an immediate success, and other airlines quickly followed suit, with Delta introducing its SkyMiles program in 1981, and United launching MileagePlus in 1983.

Air Canada Aeroplan: Air Canada launched its Aeroplan loyalty program in 1984, making it one of the first airline loyalty programs in the world. The program offers rewards for flights with Air Canada and its partners, as well as for purchases made with Aeroplan’s partners.

British Airways Executive Club: British Airways launched its Executive Club loyalty program in 1985. The program offers rewards for flights with British Airways and its partners, as well as for purchases made with the program’s partners.

Qantas Frequent Flyer: Qantas, Australia’s national airline, launched its Frequent Flyer loyalty program in 1987. The program offers rewards for flights with Qantas and its partners, as well as for purchases made with the program’s partners.

Air France-KLM Flying Blue: Air France and KLM merged in 2004 and launched their joint loyalty program, Flying Blue, in 2005. The program offers rewards for flights with Air France, KLM, and their partners, as well as for purchases made with the program’s partners.

Lufthansa Miles & More: Lufthansa, Germany’s national airline, launched the Miles & More loyalty program in 1993. The program offers rewards for flights with Lufthansa and its partners, as well as for purchases made with the program’s partners.

Pan American World Airways (Pan Am) also had a loyalty program called Pan Am WorldPass. It was also launched in the early 1980s and allowed members to earn points for flights on Pan Am and its partner airlines. Members could redeem their points for free flights, upgrades, and other rewards.

These early loyalty programs were relatively simple, offering customers the opportunity to earn miles towards free flights, with additional benefits such as access to airport lounges and priority boarding added later. However, as the airline industry became more competitive, loyalty programs became increasingly sophisticated, offering a wider range of benefits and rewards to customers.

Today, airline loyalty programs are complex systems, with multiple tiers and a range of benefits designed to incentivize customers to fly more frequently and spend more money with the airline. These benefits can include free flights, upgrades, lounge access, priority check-in and boarding, bonus miles, and discounts on hotel bookings, car rentals, and other travel-related services.

One of the most significant developments in airline loyalty programs in recent years has been the growth of the internet and the rise of travel aggregators such as Expedia, Kayak, and Skyscanner. These platforms allow customers to compare prices and book flights from multiple airlines, making it easier than ever to find the cheapest flights.

This has presented a challenge for airlines, as they have had to find ways to compete with these platforms and maintain customer loyalty in a highly competitive market. One way they have done this is by partnering with travel aggregators, allowing customers to earn loyalty points when booking flights through these platforms.

Another approach has been to make loyalty programs more flexible and transparent, allowing customers to earn and redeem points across a wider range of airlines and travel partners. For example, many airlines now offer co-branded credit cards that allow customers to earn points towards flights and other rewards when making purchases outside of travel.

Some airlines have even gone further, offering loyalty programs that are not tied to flights at all. For example, Air France-KLM’s Flying Blue program allows members to earn points through a range of activities, including hotel stays, car rentals, and dining.

However, while airlines have been successful in adapting their loyalty programs to the changing market, travel aggregators continue to pose a threat to these programs allowing customers to compare prices and book flights from multiple airlines, these platforms make it easier for customers to find the cheapest flights, regardless of loyalty programs.

To counter this threat, airlines have had to find ways to make their loyalty programs more attractive to customers. This has included offering more personalized rewards and benefits, such as free flights and upgrades based on individual travel patterns and preferences.

Airlines also leverage the power of social media, with many airlines offering special promotions and rewards to customers who engage with their brand on platforms such as Facebook and Twitter.

By analyzing customer data, airlines can gain insights into customer behavior, preferences, and purchasing habits. This data can be used to personalize offers and rewards to customers, which can help to increase loyalty and encourage repeat business. For example, if an airline knows that a customer frequently travels to a particular destination for business, they may offer that customer bonus points for booking a flight to that destination.

Customer data can also be used to identify trends and patterns in customer behavior, which can inform marketing and business decisions. For example, if an airline notices that a large number of customers are booking flights to a particular destination during a certain time of year, they may adjust their pricing or schedule to better serve that demand.

Overall, customer data is critical to airline loyalty programs because it allows airlines to better understand and serve their customers, which can lead to increased loyalty and revenue.

If your business believes a loyalty program will help with growing your customer relationship then you’ll need a good source for customer data – Pretectum CMDM can help with your customer master data management needs.