Our 2018 Key Trend: Monetizing off Personalization

Over the past 5 years the buzz word “personalization” has been thrown around a lot, especially when it comes to customer loyalty programs. But it does not seem like businesses understand what personalization truly means.

The meaning of personalization, in terms of customer loyalty programs, is to help businesses increase customer engagement and reach their goals, building long-term rapport and loyalty. But it seems like the only aspect of customer loyalty programs being personalized are emails and text messages. And the only aspect of an email or text message being personalized is your name. The actual message is not personalized.

The purpose of personalization is for businesses to monetize off of it. For a business to effectively increase customer engagement, purchase frequency and customer lifetime value, they must must understand the preferences of each customer when engaging with them. When there message becomes diluted because of faulty personalization, engagement rates and customer purchase frequency are lower. Thus businesses need to collect the necessary data to build this experience. Some of the types of data needed are:

  • What is each customer purchasing?
  • When are customers purchasing products?
  • What social media actions are being performed?
  • Who is each customer referring?

How else can a business understand the preferences of each customer without data?

Now as we close out 2017 and head into 2018, we are finalizing noticing that businesses fully understand the concept of personalization and are beginning to monetize off of it. A couple of businesses monetizing off personalization are Amazon and Netflix. Both businesses are collecting data, allowing them to proactively recommend products and content to customers. Thus eliminating some of their competition from entering a customer’s search.


Did you know roughly 35% of Amazon’s sales are from their personalized recommendations? Amazon is collecting each customers purchase history, items in their shopping carts, products viewed and liked and other actions to understand each and every customer’s needs. By being able to understand their customers, Amazon is able to promote the products their customers are interested in, increasing the chance of a purchase.



While Amazon has grown sales with personalization, Netflix has saved money. In fact, Netflix has saved roughly $1 billion per year with personalized recommendations, according to Martech. With the savings, Netflix can focus on purchasing new content that fits each individual customers’ preferences, increasing customer usage and engagement.

The Technology is Available to You

The technology to personalize customer loyalty programs is not only available to large corporations. It is now available to every type of business, from small to large-enterprise level business. With a platform like SailPlay, businesses can create a personalized customer loyalty program.

Businesses can expect to collect the following types of customer data:

  • Socio-demographic, for example: gender, age, email, phone number & location
  • Purchase history via total value
  • Purchase history via product
  • Purchase history via location
  • Purchase history via website
  • Purchase history via mobile app
  • Loyalty points earned
  • Loyalty points spent
  • Loyalty points cancelled
  • Abandoned online carts
  • Sales promo usage
  • Gifts earned
  • Gifts redeemed
  • Social media actions
  • Customer referrals
  • Badges earned


With the data collected, businesses now can personalize their entire customer experience through their loyalty program. Starting from personalized marketing campaigns to targeted sales promotions to relevant gifts, customers will receive items within their preferences.

Different Ways to Personalize

Based on Purchase Frequency

The most common way to personalize customer loyalty programs is based on purchase frequency. It is the most common way partially because of how simple it is for businesses to track this information. The more often a customer purchases or interacts with your business, the better the rewards they receive. Additionally, this is a good method for businesses to incentivize customers to spend more with them.

Based on Real-World Profiles

Another way to personalize your customer loyalty program is based on real-world profiles of your customer. What we mean by “real-world profiles” is each of your customers typically purchases from your store for their own individual reason. If you own a pizza restaurant, your customer profiles can be the following:

  • Customer A: Orders only on the day of a big sports game
  • Customer B: Orders once a week for their family dinner
  • Customer C: Orders only for a big party
  • Customer D: Orders multiple times a week because they are too lazy to cook

Based on this information, you can personalize the experience each customer type will receive. For the customer who is ordering once a week for a family dinner, you could potentially upsell them on dessert, while the customer who orders only on the day of a big sports game, you could send out an email campaign alerting them of a new topping prior to the next big game.

Based on Each Individual Customer

And another method to personalize your customer loyalty program is based on each individual customer. This method typically involves AI algorithms to master, but based on the habits of each individual customer, you can tailor their experience to each of their individual needs.

However you choose to segment your customers, you will need to personalize their offers. The reason why each of your customers purchase from your business is completely different. As a result, your motivational content to participate in your loyalty program needs to be aligned to each of your customers. Without preparing your motivational content to match each customer, then you cannot expect their engagement to drastically improve.

Examples of Monetizing Customer Loyalty Program Personalization

Targeted Sales Promotions

Joshua purchases a new pair of running sneakers every season from your retail store. Based off this information, you know Joshua is a runner and visits your store every 3 months. Prior to his next purchase, send him and similar customers a targeted sales promotion, bundling a running sneaker purchase with running apparel. Since you know Joshua will be purchasing running sneakers regardless, this promotion is an simple way to increase Joshua’s purchase value and introduce him to a new product group at your store, hopefully increasing his customer lifetime value.


Personalized Marketing Campaign

As we know, Joshua purchases running sneakers every season from your retail store. But you recently opened your website and are looking to build your online presence. Create a personalized marketing campaign for customers like Joshua, promoting your expanded selection of running sneakers on your website. Joshua and similar customers are more likely to engage with this campaign since they are already interested in running sneakers.

Now as we head into 2018, we expect to see more and more businesses monetizing off personalized customer loyalty programs. The start for any business to monetize off personalization is by choosing a platform that helps them collect the data needed to understand each customer.

For more information about personalizing your customer loyalty program and monetizing off of it, please feel free to contact our team by filling out the form below or email us at support@sailplay.com.


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