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Loyalty programs need accurate data

Published: June 30, 2011 by Erin Haselkorn

Retailers are realizing that a large percentage of their revenue stream comes from existing customers, which is why so many starting to invest in customer loyalty programs. A recent Experian QAS study revealed that 63 percent of organizations track the lifetime value of each customer, and 72 percent see that value increasing over time.

Loyalty programs are an effort to promote up-sell and cross-sell opportunities to make sure customers continue to buy throughout their lifecycle. However, simply investing in a loyalty program isn’t enough; retailers need to be sure that the contact data in those programs is accurate.

At the most basic level, marketing offers can only reach customers when the contact information is accurate, but contact data also affects a retailer’s ability to analyze their current customer base to allow better segmentation and intelligence.

To ensure data accuracy, make sure to put verification tools in place at each point of capture so that contact data is valid and complete as it is being entered. Then make sure you are updating data on a consistent basis and that it is being put into one centralized database for better analysis.

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