Two different loyalty programs in New Zealand, run by different companies, can now collaborate to better serve and grow their share of customers that are members of both programs. This delivers the data benefits of belonging to a coaltion loyalty program without having to issue someone else's loyalty points or making multi-year commitments.
Last week specialist Customer Experience innovations company Beyonde signed an agreement with ASX listed Ixup to bring the solution to New Zealand. Called Assembly, the unique service enables companies to share and analyse customer data between them without ever seeing it.
Beyonde said “Our clients have sophisticated loyalty programs and permissioned customer data and want to collaborate with each other but today they can’t. Our partnership with IXUP allows our clients to understand where they share the same customer and to each market to that customer without having to exchange data. The transaction is the new cookie.”
It's been successfully used in New Zealand by health insurer nib and in Australia by Virgin Australia's frequent flyer prgoram Velocity to collaborate on customer data with external partners.
Loyalty programs are fueled by the customer data captured every time a customer spends or interacts with the company that owns the program. Customers expressly give their permission to have that data used to better serve them and in exchange will give the company more of their spend.
What if two companies could collaborate to better serve the same customer by enriching each other's understanding of the same customer and each grow their own share of that customer? Each company could select and target preferred customers with targetted offers. They wouldn't have to rely on programmatic data or mass offers and discounts.
UK case - a bank and a telco
A bank in the UK worked with a telco in the UK to understand which of the telco's handset only customers were paying broadband contracts to the telco's competitors. The telco was then able to make rich and personalised offers through the bank for a select subset of those customers it found attractive to take out a new broadband contract with them. The bank got the kudos for bringing the customer a rich offer, the customer got a rich broadband deal and the telco grew it's share of that customer's wallet.
There's only been two ways this might work up until now. Either both companies would have to be members of the same loyalty coalition (such as Flybuys or Airpoints) or they'd need to use a data sharing provider such as Australia's Data Republic.
The latter model better suits companies with sophisticated loyalty strategies who want to collaborate with multiple partners and, until Data Republic went in adminstration in Australia, they could.
Customer data is always encrypted, never moves and privacy is always protected
Today, customer data is always encrypted when its stored. It's also encrypted when it's moved. Until today it had to be decrypted for it to be worked with and analysed. If two companies wanted to collaborate they had to decrypt, open up and share their customer data with each other.
Ixup's capability keeps the data encrypted at all times. If it's stolen - it's useless. It also doesn't move from one company to the other. Each company queries the other company's data across the Ixup platform and can only complete pre-agreed (in writting) queries of the data.
Merchant funded rewards for New Zealand credit card loyalty programs
Beyonde note there is significant demand at the moment from New Zealand credit card loyalty programs for offers funded by retailers. Payment reform means that credit card rewards are going to be reduced by half and this value needs to be topped up with offers from retailers as it is in Australia and the UK. To make it worth their while, New Zealand retailers want to target only highly valuable customers for these offers. To effect this they need to collaborate with the bank, identify comon customers and construct offers for these targets.
Marcus Gracey, Chief Executive Officer of IXUP, commented, “This agreement strategically positions IXUP’s technology in the New Zealand market and specifically focusses our technology on the New Zealand loyalty marketing sector. The co-marketing market sector is not only lucrative, but also a sector that lends itself naturally to the benefits of our platform and technology and we are very excited be able to access the tier one clients with well-known loyalty programs in Australia and New Zealand via Beyonde in New Zealand and its parent, Ellipsis & Company here in Australia. We are thrilled to be working with the Beyonde and Ellipsis teams and about the opportunities we are progressing together.”