Capillary’s aiRA: Solving the Paradox of Consumer Personalization

Posted on November 29, 2022 by Jubin Mehta

Consumer personalization has been talked about for quite some time. Jessica Liu’s article on Forrester opens on an interesting note, “This is the paradox of personalization: Consumers both want it and despise it.” And this is absolutely true. As a consumer, we’ve all been hassled by incessant emails and notifications from brands trying to sell a product. At times, these are useful and present a great deal but sometimes, it’s just annoying!

And as a marketer, this is the thin line with which one is always toying. On the one hand, there is the pressure of increasing toplines which would push marketers to communicate aggressively, and on the other hand, there is the risk of losing customers. At Capillary, we’ve developed aiRA (Artificially Intelligent Retail Analytics) over the years to answer this conundrum.

Headless AI platform for intelligent audience segmentation

Too much data can also become a problem. As a marketer, what one needs is clean, accurate data with insights to run targeted campaigns. This is the secret to a successful marketing program. Working with hundreds of brands, we’ve touched more than 875 million end customers across the globe, giving us a great foundation to build intelligence. Our team of data scientists has come up with various models which are the heart of aiRA that provide next-gen capabilities.

As an enterprise brand, you know your goals. With aiRA, we can model the requirements to achieve your goals in the best possible way. aiRA can be trained on consumer data by using a specific model and desired results can be achieved. To give an example, we’ll run through some of the models:

Crystal-gaze into when a customer would transact!

The ‘transaction prediction’ filter is like a magic filter that can predict when is a particular customer likely to transact (buy/sell). Through this filter, marketers can select the period (in the number of days) they want to consider for predicting the transaction probability of customers. For example, one can include customers predicted to shop in the next 7, 15, and 30 days.

Kill customer churn with ‘lapsation period’ prediction

It’s always great to have flags about a customer because many a time, one doesn’t know what is bothering a customer. The ‘lapsation period’ filter takes into consideration several user actions and on the basis of aiRA modeling, it can predict when a customer would lapse. This option lets you get the customers with a maximum or minimum probability of stopping transactions with the brand. The marketer can design a campaign to reduce churn and increase CLTV (customer lifetime value).

Predict time slots when a customer likes to shop

Many times, a customer gets annoyed because of the time of communication. Although there are industry-benchmarked suggested time slots, each individual can have a different preference. And this is where aiRA’s hyper-personalization comes in handy. This filter helps you build an audience group with customers that are likely to transact during the selected day(s), hour range, or week(s) of a month. This filter also helps to achieve higher incremental sales of the brands.

Which store does a consumer prefer?

Enterprise brands have multiple stores and multiple products. In the age of omnichannel fulfillment, it is critical to have all data in sync. Has a consumer browsed for something on your website and is s/he passing by a store of his or her choice? If this is the case, how about notifying them with a real-time offer? This is what the ‘store prediction’ and ‘product prediction’ filter allows you to do.

The store prediction filter helps you build an audience group with customers that are likely to transact at a store, zone, or concept. And the product prediction filter helps you build an audience group with customers that are likely to purchase products using product categories.

aiRA – Delivering Foresight, Not Just Insights

Capillary’s end-to-end platform is a suite of products like Loyalty+, Engage+, Insights+, and Anywhere Commerce+. Underlying all of this is the Capillary CDP (customer data platform) which is powered by aiRA (artificial intelligence framework).

The entire platform unifies customer data from various sources like online stores, offline stores, kiosks, and other 3rd party sites. This unified data is then converted into a 360° customer view through rules & heuristic algorithms as a part of aiRA and then delivered as actionable insights or foresight to the marketer via Capillary’s suite of products.

A Scale-Ready Solution

Capillary has worked with retail giants for more than a decade and this has led to an intelligent platform that is designed for scale:

The platform grows with your business needs
Intelligent fraud detection technology deployed to detect the possibility of fraud at an early stage
No-code, self-managed tool which is easy to use for marketers
Trained across verticals for specific use cases

Deliver Personalization at scale with aiRA

One of the biggest challenges a brand faces with respect to personalization is to deliver it at scale. Although standardization is required for any kind of scaling, it is artificial intelligence and machine learning which lets systems personalize at scale.

We’ve made giant strides in the digital age but AI is still an evolving technology and holds immense possibilities. aiRA is our bet on personalization at scale through AI and it has already shown early signs of success. Several brands have used AI-powered filters to improve segmentation and deliver highly personalized experiences to their customers.

1.How does Capillary’s AIRA enhance consumer personalization?

Capillary’s AIRA uses AI and machine learning to analyze customer data, predict preferences, and deliver personalized experiences that resonate with individual consumers.

2.What are the benefits of using AI-driven personalization for businesses?

AI-driven personalization helps businesses increase customer engagement, improve conversion rates, and boost customer loyalty by delivering relevant and timely content.

3.How can businesses implement Capillary’s AIRA for effective personalization?

Businesses can implement Capillary’s AIRA by integrating it with their existing CRM systems, utilizing its predictive analytics capabilities, and continuously monitoring and refining personalization strategies.

4.What challenges does Capillary’s AIRA address in consumer personalization?

Capillary’s AIRA addresses challenges such as data silos, scalability, and the need for real-time personalization, providing businesses with a comprehensive solution for personalized customer engagement.

5.Why is consumer personalization important for business growth?

Consumer personalization enhances customer experience, increases satisfaction and loyalty, and drives sales, contributing significantly to overall business growth

7 Successful Emotional Loyalty Campaigns that Worked Well for Brands

Posted on November 21, 2022 by Aprajeeta Singh

“93% of businesses agree that consumers are more likely to shop from brands they feel connected to,” mentions a Forrester thought leadership paper.

These numbers tell that customers expect brands to know their preferences and understand what they want & when. However, collecting customer reviews and knowing their preferences isn’t that easy. Brands need to work hard on earning shoppers’ trust and making them feel valued by resolving their issues and listening to feedback continuously. The tone of interaction truly makes a difference in building an emotional connection with brands.

It’s time to infuse human experience into your brand if you haven’t yet. Wondering how you can make it happen? At Capillary, we’ve worked with 250+ brands across the globe which has resulted in a lot of insights. Here, we share some of the best brand emotional loyalty campaigns that have successfully worked for brands.

Emotional Loyalty Approaches that Did Wonders for Brands Globally

Dove – Self Esteem Project

One of the world’s most recognizable beauty brands, Dove, made its way into women’s hearts with its Self Esteem Project. With this project, the brand pledged to empower young people to boost their self-confidence by breaking beauty biases. Under the project, Dove has been helping parents, mentors, teachers, and young leaders deliver self-esteem education for over a decade now. And, with their constant efforts, they’ve reached more than 20 million people. In addition to their educate the customer & build an awareness campaign, the brand took initiatives to support regional customers as well.

Their #StopTheBeautyTest movement in India gained momentum globally. It stands stronger in support of the arranged marriage reality in India, where women face matrimonial rejection for their looks. Per the campaign, Dove urges women who’ve faced such rejections with sharing their stories on social and challenge society to be ready for change. The campaign is woven around the idea of women accepting the beauty within – no matter their size, shape, or color. It’s powering the audience with the confidence to accept the real beauty and not just what’s on the surface.

TOMS Shoes- Helps people ‘Do good’

“When you buy TOMS, you help fund access to mental health resources for the millions of people who need them,” reads the Impact page on Toms.com. TOMS shoes has followed an impact model to contribute to the community via which it shares ⅓ of its profits for grassroots good. It includes cash grants and partnerships with community organizations to drive sustainable changes and build more inclusive and diverse communities.

TOMS Shoes is a perfect example of a brand that takes the right blend of rational & emotional approaches to bridge the gap between its shoppers & the brand. TOMS is a B Corporation-certified company that supports sustainable living with greener packaging, greater use of sustainable cotton, and reduced carbon footprints. The brand supports the community, raising mental health awareness, ending gun violence, and working strongly to become an anti-racist organization with its partners. You can explore more of their approach & initiatives here.

Levi’s – Eco consciousness

Levi’s, an American clothing brand, took the initiative to plant a tree for every download of the Levi’s app in April 2021. In partnership with an NGO – Tree Nation, they realized this mission to promote afforestation and biodiversity protection. Since the launch of this initiative, they’ve planted over 30,000 trees in Madagascar. Per their metrics, since then, trees have captured over 900 tonnes of CO2!

Motivated by the same, the brand is taking the journey of plantation ahead and inspiring consumers worldwide to join this mission with them. One of the crucial benefits of the plant-a-tree campaign is you can contribute to the global cause simply by becoming a member of Levi’s and downloading an app. This gives more power to customers and raises the belief of the brand is responsible toward the community.

Procter & Gamble (P&G)- Social responsibility through education and more

Some brands believe in growing as a community, and P&G is surely leading among them. Being a trusted choice of more than 5 billion people in nearly 70 countries, it is committed to being the world’s most socially responsible company. The brand supports environmental sustainability by carbon footprint reduction campaigns like protecting forests, ensuring eco-friendly packaging, and educating employees to integrate sustainability into business plans.

Their CSR program P&G Shiksha drove a huge community impact for more than 1.4 million students across 1800 schools. Moreover, P&G readily contributed to families that suffered Kerala floods in 2018, cyclone FANI & floods in western India in 2019. Within the organization, the brand voices gender equality and diversity & inclusion, having a team of 145 nationalities.

Samsung – Good Vibes

An act of goodness is meant to get the audience’s attention and contribute to the community for the greater good. Samsung Good Vibes is one such app Samsung built to ease communication for deafblind people. It lets users send messages using Morse Code simply by tapping on the screen, which deafblind users can do by sensing the vibrations. Of course, the app is available for people with normal sight & hearing as well to ease communications within the community both ways.

Unlike emotional marketing campaigns, Samsung touched upon an entire idea to creatively use its services to help the community as well as widen the client base. Though it hasn’t gotten much adoption, the idea helped sensitize people and certainly created an emotional appeal.

Amul- Nostalgia and Humour

A household name in India and increasingly across the world, Amul is known for its humorous and sometimes satirical takes on current events. The Amil Girl, as the mascot is known, was created in 1966, and she’s played a key role in the ads that have been simple yet extremely powerful commentary on current events.

Amul’s consistent ad campaign over the past 25 years has created such a strong emotional bond that it can be termed an impactful loyalty campaign. There’s no direct selling, the ads are honest and humorous, and that is what clicks with the people. Whenever in a shop trying to decide which butter to buy, if there’s the Amul girl on the cover of one packet, customers are most likely to buy that packet.

Shells’ Doctor Strange Promo

Knowing your customers’ interests and blending your company’s offerings around it rightly can create miracles for any business. No one understood this better than Shell plc. They recognized their audience’s craze for Doctor Strange and surprised them by planning a giveaway campaign around. Doctor Strange Multiverse of Madness promo offered Doctor Strange merchandise (caps, backpacks, pin badges, movie gift cards), discount coupons & free movie tickets on using their services. The promo was roughly planned for a month before the movie, and of course, it was hugely successful. The idea unveiled the secret society of marvel fans and helped Shell in earning more brand fans & add new customers nationwide.

Emotional Loyalty Transforms Your Brand into a Bond

It takes time to earn trust, get brand-loyal customers, and build an emotional connection. And, if you give your customers enough time, attention, and consistently improve shopper experiences, you will gradually find them turning brand loyal.

To build an emotional connection, you need not wait for your target audience to be your customers. You can consider emotions as one of the crucial marketing strategies even at the brand awareness stage like what BMW in the 1970s used in its slogan ‘The Ultimate Driving Machine’ which is now changed to ‘Sheer Driving Pleasure. Think about the strong emotions you can evoke among people and design a program around it.

Are you considering incorporating an emotional approach to tie a virtual knot with your customers? If your response is affirmative, our loyalty and engagement experts are here to brainstorm the best path forward.

What are emotional loyalty campaigns?

Emotional loyalty campaigns focus on creating a deep connection between a brand and its customers. These campaigns go beyond transactional rewards to foster trust, love, and commitment towards the brand.

How do emotional loyalty campaigns benefit brands?

Emotional loyalty campaigns benefit brands by building more robust, resilient customer relationships. Customers who feel an emotional connection with a brand are more likely to be loyal, advocate for the brand, and make repeat purchases.

What are some examples of successful emotional loyalty campaigns?

Examples include Dove’s Real Beauty campaign, Apple’s community-building initiatives, and Nike’s motivational messaging. These campaigns effectively tap into customers’ emotions to build lasting loyalty.

How can brands create emotional loyalty campaigns?

Brands can create emotional loyalty campaigns by understanding customers’ values and emotions, crafting authentic and relatable messaging, and consistently engaging with customers through meaningful interactions and experiences.

What challenges do brands face with emotional loyalty campaigns?

Challenges include accurately understanding customer emotions, creating authentic and impactful messaging, and maintaining consistent engagement. Brands must also ensure that their campaigns resonate across different customer segments.

Propensity Models: Capillary’s Secret Sauce for Marketers to Predict Consumer Behavior

Posted on November 16, 2022 by Jubin Mehta

Businesses and marketers inherently try to predict customer behavior. Be it a mom&pop store intuitively gauging shopper intent or a large enterprise using data analytics, Artificial Intelligence (AI), and machine learning (ML) to predict consumer behavior and achieve business goals. In helping enterprises achieve this, Propensity Models play a large role. The statistical technique was developed by Paul Rosenbaum and Donald Rubin in 1983. Propensity Models are statistical frameworks that try to estimate the likelihood of people behaving in a certain way. When coded into a system like Capillary, these become tools in the form of filters to help loyalty marketers run better programs.

Challenges for a Loyalty Marketer

For a marketer to run effective programs, knowing the consumer and targeting the right audience with the right message is the key. This is possible when you have a handful of customers but if we’re talking of thousands and millions of end customers across a nation or throughout the world, segmentation becomes a huge challenge.

Audience segmentation: Certain triggers like offers and promotions would only work in a particular context. For instance, if you send a “We miss you!” email to all customers in your database, it will create confusion for active customers. The system should be intelligent enough to give you this segmentation to run effective campaigns.

Too much data: Sometimes, data can get overwhelming. Different kinds of data (zero, first, second, third-party data) and the inability to make sense of it at scale can become a challenge for marketers. Data is useful only when there are systems that interpret the data and give actionable insights.

Customers with multiple identities: Many times, a customer may be associated with several identifiers, and marketers have to ensure that they have the latest data. To add to the problem, customers may change their accounts or alter their preferences which add to the complexity of the problem.

Capillary Audience Filters: A Primer

Based on Propensity Modeling, Capillary’s team of data scientists has built predictive models used as audience filters to help loyalty marketers overcome their challenges. Capillary’s audience filters provide a proven capability to target end customers based on their shopping behavior. These AI-powered filters are backed by Capillary’s artificial intelligence retail analytics (aiRA) technology which runs models on billions of transactional data points to generate accurate results.

Types of AI-based Audience Filters and Use Cases

Capillary provides a host of filters based on many business requirements. The results of the filters can be used to create an ideal audience list that can be targeted with campaigns, promotions, communications, loyalty benefits, and more. There are use cases across verticals– from retail and fashion to CPG to F&B/QSR and more.

If we consider fashion as a segment, a simple instance could be about a brand using the ‘gender’ audience. If there’s a men’s range of clothing that needs to be promoted, this filter would be called into action. Another widely prevalent use case would be to reward customers based on their average shopping amount. If a consumer has shopped above a certain threshold, they could be rewarded with a discount or a further offer. These are simple examples but all audience group filters can be classified into several types:

Loyalty stage filters: The first stage of audience segmentation will divide customers into- loyal, non-loyal, or customers that haven’t yet enrolled in the company’s loyalty program. Drilling further, the audience can be segmented into customers who have active points, customers whose points have expired, whose slab has recently changed, who are registered at a particular store or a zone, and such.

Transaction-based filters: Another key parameter on the basis of which the audience is segmented is transaction history. These filters can help you segment the audience on the basis of when they shopped, what they have shopped for, their visit count, number of transactions, total transaction amount, and several other parameters.

Campaigns & Coupons based filters: For any marketing program, coupons and vouchers are an important element for customer engagement. To optimize the use of this tactic, there are filters that let you build groups on the basis of- customers to whom coupons were issued during a specific period, customers who redeemed their coupons, customers who have responded to a campaign, and such.

User Profile-based filters: This is another major parameter on the basis of which audience lists are created. Depending on how rich and accurate your user profile is, the more effective this filter will be. Audiences can be segmented on the basis of- Subscription status (mobile number, email subscription preference), NDNC (National Do Not Disturb) status, demographic details, fraud propensity status of a customer, and many other parameters.

Purchase pattern filters: These are the most potent set of filters a loyalty marketer is most interested in. These filters include the ability to segment the audience according to a customer’s- average transaction value, most recent purchase, preferred day/time of shopping, the probability to be incentivized by discounts, average spend per unit item, and many more.

Artificially intelligent filters: aiRA (artificial intelligence retail analytics) powered filters are designed to target customers with a specific prediction. When you combine aiRA-powered filters with the above standard filters, the chances are much higher to achieve a better hit rate, incremental sales, and avenues to offer relevant products to customers at the right time. Some of these filters include capabilities through which one can predict when a customer would transact or when a customer will lapse.

Perfect Your Customer Outreach, Redefined with Propensity Modelling

Capillary’s advanced filters along with the aiRA-based filters give a loyalty marketer the superpower to execute precise marketing programs and deliver business results. In this age of competition and excess of everything, it is important for brands to have meaningful data and actionable insights to make sense of it. This is what Capillary’s filters do and help loyalty marketers perfect customer outreach and deliver a great end-customer experience.

The Science of Emotional Loyalty and Why it Matters for Brands

Posted on November 3, 2022 by Aprajeeta Singh

When dealing with people, remember you are not dealing with creatures of logic, but creatures of emotion. -Dale Carnegie

“Don’t mix business with emotions.” It’s a common saying. But is it true? I doubt!

We, humans, are full of unpredictable emotions & variable logic. Logic or emotions alone can’t address our reactions to situations, as our actions are driven by several other factors. Talking about shopping, for some, it is a leisure activity, and for others, it’s a duty-bound thing. And that’s why the shopping preferences of no two individuals are the same.

Today, when brands want to bring their first-time shoppers back in the loop of transaction cycles, emotions play a critical role. With increasing competition, customers need more than quality products to keep going with a certain brand. Competitive pricing, rewards, psychological preferences, personalized experiences & the values that brands stand for – are becoming crucial for customers. Neither pure emotions nor hardcore logic. It’s the right balance of emotional & rational approach that can work well for any business. Going further in this blog, you will learn how emotional loyalty supports common types of loyalty & aids in customer retention.

Prominent Types of Loyalty

“How can we earn more loyal customers?” is the question that brands across the globe keep asking. There is no mathematical formula or methodical approach to gaining loyal customers, for sure. From Daniel Katz’s psychological understanding of individuals in the 1960s to Forrester’s best practice report on loyalty in 2021, customers’ approach toward brand loyalty is evolving. With offerings moving from low-value tangible things to high-value intangible things, the coming generation shows greater towards the ‘Experience Economy’. The most common loyalty types observed in the industry are listed below –

Transactional Loyalty: Customers remain loyal to a certain brand they are shopping from for the monetary rewards they are getting instead of long-term associations. Individuals accrue benefits here based on transactional exchanges, and they remain loyal to the brand as long as they don’t find the best deals elsewhere. Let’s consider a customer who shops grocery items for 5000INR/month from DMart and gets 500INR off from the bill in addition to discounted rates of products. If a grocery store in their vicinity offers a flat 50% discount to their first-time shoppers, they may prefer shopping once from there to claim that deal. You can see it’s purely a rational decision, and that’s why it is also known by the names – rational loyalty, functional loyalty, or cognitive loyalty.
Behavioral Loyalty: The tendency to purchase products from the same brand every time rather than seeking for its alternatives comes out of habit. That’s why people refer to behavioral loyalty as habit loyalty. For example, Mia shops for her stationery from a shop in her vicinity. She may get a discount on some of the notebooks & might pay a little more price for the sketch colors. Regardless, she shops from there because it’s in her vicinity & she has been shopping there for a few years. In this scenario, if she relocates, then she will not come back to shop for her stationary items from that shop specifically.
Emotional Loyalty: One of the rare yet most intriguing loyalties that brands crave is an emotional one. It is driven by the psychological preferences of customers & their shopping experiences. Though it’s a long and uncertain process, emotionally bonded customers have demonstrated greater conversions. Jargon won’t last long, but stories do, and that’s why businesses across the globe are counting on emotional marketing strategies. A global diamond brand, DeBeers’ experienced that their tagline ‘A diamond is forever’ is losing its true meaning. They’ve tried a unique approach of putting an installation of 25,000 red roses spelling out ‘A diamond is forever’ in the middle of New York’s Grand Central Station. As expected, the time being, roses changed color, dried out & died. DeBeers’ approach not only caught the eyes of lacs of people & gained attention globally but successfully delivered the message to the audience that other gifts are temporary, unlike diamonds.

Why Does Emotional Loyalty Matter?

As the word “loyalty” itself is an emotion, brands can rely on emotional loyalty to keep the soul of “loyalty” intact. Emotional bonds are known to bring a deeper level of commitment both for customers and brands. The best outcome of emotional loyalty for brands is brand advocacy. Shoppers not only shop the products from any brand but rather become product advocates on social handles, forums, and in-person discussions. It’s like getting a salesperson for your brand at no cost.

It is very important for brands to understand the psychology of customer loyalty. There can be many reasons behind emotionally loyal customers, like individual situations (like the one mentioned above), experiences using the products of specific brands, a societal/global cause that the brand supports, and values you stand for & support as a brand. Brands often leverage the power of storytelling to entertain, inspire, educate, energize and deliver the right message to the customers. The research by Capgemini finds that highly emotional people buy their favorite brand 82% of the time when they need a specific item, compared to 38% for less emotional people. Needless to say that emotional loyalty alone can’t bring loyal customers to your store’s door. Transactional rewards, customer behavior & shopping experiences often bring shoppers to the list of regular customers. Gradually, when a brand gains shoppers’ trust, using an emotional approach helps them improve its customer engagement rate. Moreover, it helps in understanding your customers’ behavioral preferences to personalize their shopping experiences.

How Can Brands Cultivate Emotional Loyalty Among Customers?

Creating a holistic customer experience for shoppers is a journey. It’s not a game of a single marketing campaign, a success story, or a viral video that can win you, loyal customers in a single day. It’s a consistent approach with multiple stages in a journey that a customer takes with your brand and becomes a loyal customer (more on this Harvard Business Review report). Here, you will find some promising tactics that brands leverages to uplift their customer engagement rate & boost ROI.

Let data drive your customer’s emotional understanding –

Loyalty won’t happen as a single-shot reaction; it is driven by multiple stages. Using your customers’ data, you can get a better understanding of the times when they felt delighted. Walt Disney took this approach to the next level with their emotional data capture methods. Using facial recognition technology, Disney captured the response of its viewers in terms of the emotions displayed. Further, they analyzed & deployed this data in their coming movies.

Ideate your campaigns around your customers’ interests –

Another way is to have a deep understanding of current culture and what people are connecting with. For instance, music bands have a mass following, and there is a new band on the blocks every few months that become a sensation. In the middle of 2021, the K-Pop boy band BTS was a rage, and McDonald’s collaborated with the band to come up with BTS meals, and they were an instant success!

Stand for the values you support as a brand –

This approach not only builds connections with your customers but will also humanize your brand. Be true to yourself when counting on those values & see how you can spread the message along those lines. For example, the Tata group is the symbol of trust and longevity in India. Its latest campaign and book – #TataStories with Harish Bhat, plays very well on the values Tata stands for, making it very natural for customers of the Tata Group to connect and reconnect with the brand most of India has always admired.

Building emotional loyalty is not a quick fix. It takes time, but if you’re in it for the long term, values and ethics are the most important. If you’re true to the values, it reflects in the campaigns; this is the best way to enter and stay in people’s hearts. This is when a customer becomes a family. Want to add an emotional element to your loyalty programs? Reach our emotional loyalty experts & drive engagement to your brand like never before.

How Capillary’s Nudge Framework can be a Gamechanger for Loyalty Marketers

Posted on November 1, 2022 by Jubin Mehta

A concept in behavioral sciences, the Nudge Theory was named and popularized by the 2008 book “Nudge: Improving Decisions About Health, Wealth, and Happiness”, written by American academics Richard H Thaler and Cass R Sunstein. The theory is mainly concerned with the design of the environment in which people make choices. The framework is about understanding how people think, behave and make decisions.

At Capillary, we’ve been building on the Nudge theory in the context of a Loyalty Marketer. Pioneering the Nudge Framework implementation in the context of loyalty marketing, using the platform gives you an upper hand against the competition when looking to improving customer engagement with Nudge and deliver a great experience.

How the Nudge Framework helps a Loyalty Marketer

Working with 250+ brands and touching 800 million+ end customers globally, Capillary’s system is extremely rich in data which helps the Nudge engine to come up with some really incisive insights. We’ve devised a product-led way to help loyalty marketers, CXOs, and practitioners improve the performance of their marketing programs with the least friction. One of the layers across the Capillary suite of products, the nudges can be broadly categorized into three kinds:

Type 1 (Data-led Nudges): Know how your program is doing, and potential disruptions to watch out for
Type 2 (Platform best practices): Low-hanging fruits to leverage product features
Type 3 (Proactive Nudges): New initiatives that can boost program performance to the next level

Now, let’s dive deeper into these three kinds of nudges and the benefits they can reap for a brand.

Type 1 Nudges from Data Trends (Data-led Nudges)

It can be a tedious affair to keep track of tens of metrics on a regular basis and particularly without context from the industry. The aim of this category is to proactively serve key insights on what’s working and what can be made better and how you are doing compared to peers in the industry. For instance, if the system detects the following:

% customers redeemed points is low: The recommended suggestion could be to set up reminders- Points Redemption push or to initiate a points top-up campaign.
% expiry is high: If there are a lot of customers with a points balance below the 25th percentile of average redemption, the nudge would be to improve generosity.
Churn rate is high: The nudge would suggest measures like setting up a recurring campaign using the “about to lapse AI filter” and winning back repeat customers through strong offers.
% repeat customers are low: The system nudge would be to set up welcome or registration bonus, “We miss you” campaigns for one-timers who are on the verge of lapsing, and other such recommendations.

Type 2 Nudges to use the product to its full capability (Platform best practices)

Over the years, we’ve built an extremely comprehensive platform with loads of intelligence inbuilt. Sometimes, it can become overwhelming and you may miss out on some of the features that a loyalty marketer can leverage. To ensure this doesn’t happen, here are some of the nudges:

Upgrade Communication not setup: This nudge means that the user hasn’t set up any upgrade communication for the ‘Default Program’. Upgrade communication can be quite useful for talking about the benefits of the new tier that the end customer has now earned.
In case of Points Expiry Reminder is not set up: Points Expiry Reminders tend to increase customers who redeem points by x% and your redeemers contribute y% more to the brand – leverage this impact through simple reminders.
Demographic data is not captured/low: The nudge would be to set up a “Welcome bonus on filling in details”. This would incentivize end users to provide their data with consent, and your demographic data would now be richer.

Type 3 Nudges to take up the program engagement a notch higher (Proactive Nudges)

Apart from the above two types of nudges, these are nudges that look at doubling down on the engagement and loyalty game. These are add-ons that help loyalty marketers further refine their engagement program.

Low DVS (Dynamic Vouchering System) issues: Capillary’s DVS enables a marketer to send personalized vouchers to its customers in real-time. Through the data, if it is found that the issues are low, the nudge would be to set up bounce-back campaigns to create aha moments for your customer. Such experiences help maximize in-store spending at that moment or encourage the next visit.
No/Low amount of promotion points issued: Using data, we can gauge this metric and the nudge would be to set up a loyalty-based promotion to create “surprise and delight” moments for your customers.
In case the Birthday Campaign is not set up: The nudge would be to issue bonus points 15-30 days prior to the birthday valid till 5-7 days after their birthday. This will increase the chances of a shopper buying from you around their birthday.

Get Seamless Suggestions – The Capillary Advantage

Many times nudges are ignored by a loyalty marketer or a user in general because the workflow isn’t optimal. A system may be giving the right nudges but at the wrong times! This results in subpar effectiveness. To avoid this, Capillary’s Nudge Framework undergoes continuous feedback cycles and AI learning to ensure the nudges are smoothly integrated into the workflow for a loyalty marketer.

Data Analytics plays a huge role in helping us deliver the right nudges to help you achieve your business goals. As we strengthen our position as a leader when it comes to innovation in the field of Nudge for Loyalty Marketers, we see tremendous benefits for our clients in delivering loyalty solutions and creating great customer experiences.

Talk to a loyalty and engagement expert to learn more about the Nudge framework and see how it can help improve your program performance.