Laszlo Sajtos

If you think about it, the main idea behind loyalty programs is basically just understanding who you are.

Who are the customers we are talking to?

So if you don't have loyalty programs, I guess, you know, this is the interesting aspect.

I guess I tend to discuss with my class that, you know, imagine a company that doesn't run a loyalty program.

Imagine a company that it comes naturally to them.

to run a loyalty program, you know, what are the differences?

So, you know, at least you actually get to know your customers.

You get to know who they are, the demographics, you know, all this transactional data that we talked about and the rewards side of things.

So the app data that it comes with it.

So what they do is on its own, each, every type of data is very useful, right?

So if I just think about your identity, it would be really important for me to segment my market, to target certain customers.

And that could be just based on your identity, demographics, or any other data that you have, location data, or just based on your transactions.

So all these types of information, what you actually do is basically sort of feeds the next stage, which is all about this personalization aspect of loyalty programs that depending on the type of customer, the type of purchases, or the type of way, the way in which you actually make your decisions,

I can put you in smaller and smaller sort of segments or segment to one, and I can basically personalize all the messages.

And I can basically learn whether you actually respond to these messages, right?

So if I push out these notifications to individual customers, then I can learn how price sensitive people are, whether, you know, lowering a price is actually useful.

How often do you buy?

So it's, you know, in marketing, at least, it's a huge challenge.

The question is whether a customer is still alive or they have so-called churned.

So whether they left the company.