In our latest edition of Loyalty Live, Loyalty360, speaks with Shamba Schmidt, Vice President, Solution Consulting at Epsilon. As a global marketing and data technology company known for its innovative approach to loyalty solutions and data-driven customer engagement, Epsilon leverages its extensive data repository and robust data practices to help brands forge meaningful and personalized connections with their customers.
Read on to learn more about how Epsilon enables brands to harness data to drive loyalty, from enhancing customer profiles to implementing customized loyalty strategies that resonate with today’s consumers.
Loyalty360: Welcome, Shamba. Can you tell us a little bit about yourself—your current role with Epsilon and your background?
Shamba Schmidt: I cut my teeth in loyalty back at Carlson Marketing where I worked on a lot of financial services programs. I moved through the industry and ended up at Epsilon about 12 years ago. Now, I’m part of a practice within the bounds of Epsilon that helps design end-to-end solutions for brands looking for a bespoke loyalty program or a component of loyalty that's driving a specific output. My team works hard on new pursuits as well as helping clients think about the road map of where they are in their marketing maturity with their customers and how they can truly evolve to that next level.
L360: Could you tell us a little bit about Epsilon’s experience in leveraging data to support your clients’ loyalty initiatives and how this approach helps brands build deeper, more personalized connections with customers?
SS: We’re probably one of the only ones in the industry that have the story we do in terms of data. We have a very robust data repository in our loyalty database but beyond that, we have a complete data practice within Epsilon. That allows us to take advantage of not only being able to bring data in but have a very strong methodology around hygiene practices to ensure we have the most pristine file on a member. Also, we have full augmentation capabilities and enrichment capabilities so we can get to the demographic, behavioral, psychographic information that allow our brands to truly understand the member beyond their purchases.
L360: How would you describe the overall impact of data on customer loyalty programs and strategies today, and why is it critical for brands to prioritize data-driven approaches?
SS: It's probably never been more important. In the 25 years I've been in this industry, we've always said data is the number one priority. You have got to get it right to maintain credibility with the members. Today, It's still the same story, but at a heightened level because of things like AI. That tech is only going to work well if it has a great data set sitting on top of it to help it predict more rich and robust journeys or outcomes or offers.
L360: In what ways can brands use data to gain a deeper understanding of their customers' desires and preferences, particularly when it comes to loyalty program elements such as rewards, benefits, or tiers?
SS: In an economy like we have today where we see so many people price shopping, they may still be very loyal to your brand, but need something a little bit more affordable. When you can recognize what behaviors they're exhibiting, you may be able to circumvent them shopping somewhere else. That may require looking at different strategies that are not just points for purchases but points for engagement or for activity. It helps build a more robust profile in all the ways a member is engaging with the brand allowing them to target that consumer or that member in a way they hadn't previously.
L360: For brands dealing with siloed or fragmented data, what initial steps would you recommend to begin gaining a more unified view of customer needs and preferences?
SS: Everybody's asking, “What's the best approach?” And for everybody, the best approach is going to be different because of where they are in their maturity with data or with technology. It is about getting started. Wherever you are, get started, be able to recognize there's no silver bullet in any of it. It is an enterprise initiative that brands have to take on. Getting started and then staying committed to the process is really the only way forward.
L360: What advice would you give to brands that are in the early stages of leveraging data to enhance their customer loyalty programs? Are there any key takeaways or first steps you’d recommend for building a data-driven loyalty strategy that truly resonates with customers?
SS: Start with the “North Star”. If you don't know where you are or where you want to go, there is no possibility for a roadmap. So as an organization, and not within a siloed piece of the organization, but at the enterprise level, figure out what that “North Star” experience looks like, and then figure out where you're going to start. It’s not just about buying technology. It's truly about having a roadmap of best practices that will allow you to get to that “North Star” effectively.
L360: Do you have any closing advice or thoughts? What’s next for Epsilon for the end of 2024, into 2025?
SS: We are looking at how our organization can take the technology and the channels that we offer at Epsilon and help brands drive a continued conversation across every channel where their members interact with them. Email is a channel, which is totally great, but there's other ways that we can be engaging with brands. Customers are expecting brands to know who they are and all the places that they're engaging with the brand and recognize them for it. Our focus is making that a lot easier for brands to be able to put their arms around. Specifically, helping them roadmap what that looks like in 2025.
Epsilon’s innovative use of data empowers brands to build more effective, personalized loyalty programs that resonate deeply with their customers. From consolidating fragmented data to implementing customized strategies that address specific customer behaviors, Epsilon’s approach demonstrates the potential of a data-driven framework. Shamba’s emphasis on starting with a “North Star” and committing to an enterprise-wide strategy reflects a clear path for brands aiming to enhance customer loyalty in today’s competitive market.
For more valuable insights like this from industry leaders,
become a Loyalty360 member today!