When Customers Feel Exclusive, Customer Lifetime Value Follows
Research shows that emotion is the primary driver of customer loyalty, and the top emotion that inspires loyalty is feeling valued. When you give a group like students, teachers, and the military an exclusive offer, you spark this emotion in customers because they feel rewarded for belonging to communities they strongly identify with.
This type of customer loyalty marketing is known as identity marketing, and leading brands are using it to win and retain high value customers. And when they use SheerID to verify eligibility for their exclusive offers, they collect valuable first-party data to create highly personalized campaigns that drive even greater loyalty.
Drive loyalty sign-ups and strengthen your data
with our simple CRM/CDP integration.
Create a Genuine Emotional Connection
The path to creating customer loyalty is to make customers feel valued, appreciated, and respected. Giving a consumer community an exclusive offer triggers these feelings because it celebrates meaningful aspects of a customer’s identity, like their life stage, profession, and affiliations.
When customers receive an identity-based exclusive offer, 73% feel more emotionally connected to the brand and 71% are more loyal to the brand.
Own the Customer Relationship
Understanding your customer is the bedrock of loyalty brand marketing. The more you know about your customers, the better able you are to manage your relationship with them and personalize their experiences in a way that deepens their loyalty.
The data you collect through identity marketing is valuable because it comes directly from customers and tells you meaningful things about their preferences and lifestyle. For example, college students are often into fashion and technology, nurses usually have long working hours, and military families frequently relocate.
This knowledge can be integrated with behavioral and transactional data to give you deep insight into your customers that you can use to provide them with genuine value that will drive their loyalty.
Boost Enrollment in Your Loyalty Program
Identity marketing can increase membership in your loyalty program because it motivates customers to sign up. More than 70% of consumer communities—including 88% of teachers—would likely join a brand’s loyalty program to receive an identity-based exclusive offer.
When you integrate SheerID into your loyalty app, customers are verified for your offer as a seamless step in your loyalty program sign up process. This user-friendly approach makes it easy for customers to redeem your offer. And the added layer of security protects your offer from fraud and builds brand trust.
Once customers are verified, your loyalty program automatically redeems any subsequent offer they’re eligible for—whether they shop in-store, online, or in-app.
This kind of customer-centric loyalty marketing is essential to driving an effective customer lifetime value strategy.
Fortify and Leverage Your Customer Loyalty Data
The first-party data you collect through identity marketing is the most valuable kind of customer data you can have because it is self-attested, verified, and reflects truly meaningful aspects of your customers’ identity. When you combine it with the other demographic, behavioral, and transactional customer data you have, its value grows exponentially.
With the data you get from identity marketing, you can:
- Unlock new cohorts to engage.
- Develop more sophisticated and targeted marketing campaigns.
- Create highly personalized experiences for your customers and a steady stream of exclusive offers that will keep them engaged.
- Find new ways to monetize your customer loyalty data.
Identity marketing data can power numerous loyalty marketing solutions and help you build a foundation that drives sustainable, customer-centric growth.
Boost Your Omnichannel Strategy
When you integrate the verification of your offer into your loyalty program, you provide customers with an instant omnichannel experience. Once a customer adds (verified status = military) to their loyalty profile, you can deliver even more personalized benefits and messaging throughout the marketing and selling journey and reap greater customer lifetime value.
Identity Marketing for Customer Loyalty FAQs
Q: What is identity marketing, and how does it grow customer lifetime value?
A: Identity marketing is a customer acquisition and loyalty strategy in which a brand offers a consumer community an exclusive offer. When customers redeem the offer, a brand uses the verified data it collects to re-engage them with additional personalized offers and campaigns, which drives customer lifetime value.
Receiving an exclusive offer makes customers feel valued, and the emotional bond it creates drives them to purchase from the brand again and again. Seven in ten customers who receive an exclusive offer for their community are more loyal to the brand that provides it.
Q: How does SheerID drive customer loyalty?
A: With SheerID, you can market to your best customers by giving exclusive offers to the groups that most align with your brand, such as students, teachers, or the military. When you show your key customers how much you value them, you become their go-to brand. SheerID enables you to target hundreds of different communities with more than 2.5 billion consumers worldwide.
The SheerID Verification Platform gives you first-party data you can use to re-engage these customers. It also gives you tools to maximize their loyalty. You can increase conversions with SMS and email reminders, run A/B tests to optimize campaigns, and measure key metrics like revenue, AOV, fraud prevention, ROI, and more.
Q: How does identity marketing create an emotional connection with customers?
Identity marketing is a way for a brand to give special offers to customers for belonging to communities they strongly identify with. Customers who receive these offers report feeling excited, valued, appreciated, and rewarded.
This exchange leaves customers feeling deeply recognized and endears them to the brand. Sixty-five percent of consumers who belong to an identity-based community said they feel more emotionally connected to brands that give them an exclusive offer.
Q: What is the benefit of collecting first-party data through identity marketing campaigns?
A: First-party data is valuable because customers willingly and directly provide it. The first-party data you collect through identity marketing is even more valuable because it is verified by the SheerID Verification Platform, so its accuracy is assured.
Identity marketing data reveals the groups your customers belong to, which gives you insight into their needs, preferences, and lifestyle. You can use this insight to create personalized marketing campaigns that win your customers’ attention and loyalty.
Resources for Loyalty Marketing Solutions
Customer Loyalty in 5 Steps
- Create an emotional connection.
- Own the customer relationship.
- Drive loyalty program sign ups.
- Strengthen your data asset.
- Boost omnichannel marketing.