Traditionally loyalty efforts provide a rich set of data on a member’s transactions. Transactional data is a great start, although it only informs us of what a member is currently buying from us. Transaction data rarely provides insight on what else the member could be buying, the reasons behind their purchase or what differentiates this customer from others.
Trying to learn from transactions alone is like receiving a gift without knowing why or who gave it to us. We want to thank the person for the gift and let them know how much it’s appreciated. We want to know more about the giver so we can give them something in return. The more we know about them, the more value we will provide in future interactions with them. And the more we know about each customer, the easier it becomes to understand what differentiates this customer from the rest.
Seeking and applying data in loyalty has similar characteristics. Marketers want to understand who gave the gift, which in this...



