Q&A: How customer relationship scoring enhances loyalty program effectiveness

By: Max Kenkel

What you need to know

  • Go beyond transactional data to evaluate comprehensive customer engagement.  
  • Having an effective customer relationship scoring tool can identify top fans and at-risk customers.
  • The best customer loyalty technology tracks, unifies and activates customer information to strengthen relationships.

 

customer relationship scores show brand loyalty

Taking a more advanced approach to customer loyalty software allows forward-thinking teams to score relationships, not just transactions. The right relationship scoring activates data to build better customer loyalty programs that resonate across key segments at every stage of the customer journey.

To truly understand the value of your most loyal customers, it’s essential to look beyond purchase, frequency and spend. Emotional engagement, advocacy and long-term relationship value must also be considered. 

When brands solely focus on traditional metrics like purchase, frequency and spend, they ignore critical aspects of customer engagement. A more comprehensive understanding of customer relationships includes reviewing the emotional and psychological drivers of brand connection.  Loyalty deepens when customers feel emotionally invested and see the brand as a trusted resource. Value becomes reciprocal when brands position themselves as partners and deliver consistent, valuable, personalized experiences.

Asking the right questions, like those below, connects your brand to customer loyalty software capable of delivering more holistic customer profiles. 

Related: How to build customer loyalty by adding more value to your customer loyalty program

Q: How can a customer loyalty platform evaluate emotional loyalty?

The best customer loyalty programs help brands turn transactional customers into brand advocates by creating value in three areas:   

Measuring these psychological benefits is more complex than merely tracking purchase history. Customer loyalty software with relationship scoring capabilities helps marketers: 

  • Detect early signs of disengagement 
  • Understand emotional responses to campaigns or experiences 
  • Tailor experiences to match a customer’s mindset 
  • Predict behavioral shifts and act proactively  
  • Encourage reward redemption  
  • Orchestrate and automate touchpoints to make sure no customer is left behind

Related: How psychological benefits affect successful customer loyalty programs

Q: What kind of customer data can loyalty software use?

Effective customer engagement platforms helps brands create an omnichannel approach, pulling from a wide range of data sources: 

  • App usage 
  • Email engagement 
  • In-person interactions 
  • Purchases 
  • Reviews 
  • Website visits 

Mapping previously siloed information deepens customer behavior insights. Marketers should seek out a platform that can unify data from multiple sources to build a dynamic picture of each customer. Then they can identify top fans and at-risk customers with one centralized view. 

Q: What metrics could be considered for customer relationship scoring? 

Horizon, ITA Group’s all-in-one customer loyalty software, goes beyond satisfaction and interactions to evaluate customer relationships based on five key emotional metrics:

  • Engagement: Are customers interacting with your brand consistently across channels?
  • Loyalty: Do they return regularly, refer others or advocate for your brand?
  • Value: Are they high spenders or do they show long-term potential?
  • Influence: Do they shape others’ opinions through reviews, social media or word-of-mouth?
  • Sentiment: What emotions do they express when they talk about your brand?

With all these powers combined, the ELVIS metrics form a complete view of how individual customers perceive your brand. These insights highlight patterns and trends to better understand what drives value and loyalty, shaping program strategies as well as quickly identifying segments of concern.

Q: How should customer relationship scoring influence loyalty program design?

Loyalty can’t be bought. Brands must earn it by building emotional connections across numerous touchpoints. Let relationship-first strategies inform customer loyalty program design: 

  • Offer personalized rewards aligned with customer values
  • Create emotionally resonant content
  • Time communications for maximum impact
  • Launch exclusive experiences for high-potential audiences

Understanding emotional loyalty is a competitive advantage for today’s brands. Tapping into how customers feel about your brand allows loyalty programs to shift from transactional to transformational connections. Relationship scoring provides the data-driven insight needed to spot disengagement early, personalize touchpoints and rewards and create memorable experiences that keep customers coming back (and likely even bringing others with them)! 

When your customer loyalty platform can evaluate sentiment, motivation and behavior in real time, it becomes your best tool for long-term growth.

Book your discovery session now and get a firsthand look at how Horizon helps businesses move faster and work smarter. 

Max Kenkel
Max Kenkel

As Customer Solutions Manager, Max leads our Customer Solutions line, ensuring all six components of a successful loyalty program deliver for our clients. With more than ten years of experience in strategy across customer, channel and employee loyalty programs, he’s seen a lot. You’ll often hear him talk about how important data is to brands. In his words, “It’s easy to make decisions on intuition, but it’s a lot easier to justify to shareholders when you can back it up with data.” Beyond his professional passions, Max plays bass in a pop punk band, visits as many national parks as he can and is an aspiring poet, publishing his first book in 2023.