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The role of data analytics in tailored loyalty programs

Online retailers can readily access detailed customer data about how regularly we visit a site, what products we click on and how long we spend on a page. But the humble loyalty card is one of the few tracking tools available for physical retail marketers.

Loyalty card programs can offer businesses valuable insights into who their customers are, where they are from, what they buy and when. The big two Australian supermarkets have leveraged data analytics from their loyalty programs to better understand shopping habits, tailor marketing campaigns and inform decisions on where to open new stores.

But with consumers increasingly wary of having their inbox bombarded with irrelevant promotions, overly complex systems that fail to personally target customers can be a real turn off. 

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