Elevating Customer Loyalty Experience in Retail leveraging Data and AI

Introduction 

Did you know that loyal customers spend up to 67% more than new customers?  

For retail chains, especially in competitive industries like convenience stores and gas stations, retaining customer loyalty isn’t just an option—it is a necessity. 

Your chances of selling to a new customer are just between 5% and 20%. That chance rises to 60% or 70% for existing customers. (Forbes) 

How can retailers effectively differentiate themselves with increasing competition, fluctuating fuel prices, and evolving consumer preferences? 

The answer lies in data-driven loyalty management. With advanced tools and technologies like Microsoft Fabric and Power BI, industries can unlock unprecedented opportunities to engage customers, boost retention, and drive growth. Here is how LevelShift, a trusted data modernization consulting company, empowers retail businesses to revolutionize loyalty management. 

The 5 Data Pillars of Loyalty Management in Customer Success  

The loyalty management market could be worth as much as $28.65 billion by 2030. (Fortune Business Insights)  

 While we understand that data is the key ingredient to effectively serve customers, we do believe in a few effective techniques on how we do it with Fabric. Here are the 5 data pillars:   

1. Customer Segmentation  

One size doesn’t fit all—especially when it comes to customer loyalty. By utilizing Microsoft Fabric consulting services, businesses can:   

• Analyze purchase patterns, spending habits, and demographics to create tailored customer segments.  
• Design loyalty programs and promotions that resonate with each segment, ensuring higher engagement and ROI. 

For example, a retailer can identify frequent fuel buyers and offer targeted discounts or exclusive perks, while incentivizing casual shoppers with personalized promotions.  

2. Predictive Analytics  

Predictive analytics is a proactive approach that ensures that businesses stay ahead of customer expectations and foster long-term relationships. With data and AI services, predictive analytics transforms loyalty management:   

• Identify at-risk customers before they churn and proactively re-engage them with tailored offers.  
• Use machine learning models to anticipate future buying patterns and refine promotional strategies accordingly. 

By unifying data from various sources through Microsoft Fabric services, businesses can achieve deeper insights and more accurate predictive models.   

This consolidation ensures that every data point contributes to understanding customer behavior, making predictions more reliable and actionable.  

3. Personalized Offers 

Personalization is the cornerstone of modern loyalty programs. Using insights from business intelligence consulting services and Power BI implementation partners, retailers can:   

• Develop hyper-personalized promotions based on individual shopping habits and preferences.
• Offer rewards tailored to customer lifetime value (CLTV), ensuring high-value customers feel appreciated.

Imagine receiving a personalized discount on your favorite snack or a surprise reward for hitting a fuel purchase milestone—these experiences leave lasting impressions. With Microsoft Fabric, the seamless integration of data sources enables a unified view of customer interactions, making personalization more precise and impactful.  

4. Customer Lifetime Value (CLTV) Analysis 

Understanding CLTV is essential for prioritizing high-value customers. LevelShift’ data modernization services enable businesses to:   

• Calculate CLTV accurately by unifying data from loyalty cards, mobile apps, and point-of-sale systems.  
• Focus resources on retaining and rewarding top-tier customers, maximizing overall profitability.    

5. The Role of AI Agents in Loyalty Management  

AI Agents are a game-changer in loyalty management, offering intelligent, data-driven customer interactions. Here’s how they enhance loyalty programs:   

• AI Agents, powered by insights from Microsoft Fabric services, provide instant responses to loyalty-related queries like reward balances and redemption options, fostering stronger connections with customers.  
• By leveraging unified data, AI Agents suggest rewards and promotions tailored to individual preferences, elevating customer satisfaction and loyalty.  
• AI Agents identify at-risk customers through predictive analytics and engage them with timely, customized incentives, reducing churn and boosting retention. 

With AI Agents and LevelShift’ expertise in data modernization services, businesses can revolutionize their loyalty programs to deliver seamless, meaningful experiences that keep customers coming back. For more details, you can read our whitepaper on AI Agents.    

LevelShift’ Role in Loyalty Management 

69% of respondents report loyalty to specific retailers, brands, and stores in 2024, a drop from 77% in 2022. This decline reflects the growing ease of switching brands, thanks to AI-powered platforms that enable customers to easily compare options and make informed decisions. (SAP Emarsys) 

 This number clearly shows AI’s immense potential and how it influences customer behavior. With exceptional copilot integration in Microsoft Fabric, you can use AI to its maximum potential and retain a loyal customer base.  

LevelShift’s approach to loyalty management includes the following techniques: 

Fabric Implementation 

As a Microsoft Fabric consulting company, we enable clients to set up centralized data lakes that unify customer data from diverse sources. Microsoft Fabric services enable the following for retailers: 

• A single source of truth for all customer interactions. 
• A robust foundation for advanced analytics and loyalty program optimization. 

Data Modernization 

By leveraging us as experts in data modernization consulting services, LevelShift helps businesses: 

• Cleanse, enrich, and transform raw data into actionable insights. 
• Improve data accuracy and consistency, enabling reliable decision-making. 

This ensures loyalty programs are built on trustworthy, high-quality data, driving better outcomes. 

Advanced Analytics and AI/ML 

LevelShift implements cutting-edge machine learning models through data and AI services to achieve the following: 

• Predict churn and suggest preventive measures. 
• Automate personalized offer recommendations, reducing manual effort while boosting program efficiency. 

Power BI Dashboards and Reporting 

LevelShift’ Power BI services provide: 

• Interactive dashboards offering real-time insights into loyalty program performance. 
• Customizable reports for tracking key metrics like customer retention rates, reward redemption, and promotion effectiveness. 

These tools empower businesses to make data-driven decisions and constantly refine their loyalty strategies.  

Real-World Success: LevelShift in Action 

LevelShift leveraged Microsoft Fabric and Power BI consulting services for one of its leading retail clients to modernize its loyalty management platform. By centralizing data and deploying advanced analytics, the client: 

• Improved customer segmentation and targeted promotions. 
• Reduced churn rates by identifying at-risk customers early. 
• Increased overall program engagement and customer satisfaction. 

This transformation enhanced the retailer’s loyalty program and delivered measurable business growth, showcasing the potential of data-driven loyalty management. 

Ready to Transform Your Loyalty Program? 

LevelShift is your trusted partner for Microsoft Fabric consulting services, data modernization consulting, and Power BI implementation. Whether you want to enhance your loyalty strategy, improve customer engagement, or modernize your data platforms, our expertise can help you achieve your goals.

Talk to our experts over a whiteboard session with your requirements, where we can demonstrate the benefits: 

• Data is the foundation of loyalty success: Tools like Microsoft Fabric and business intelligence consulting services enable businesses to unlock actionable insights. 
• Personalization drives loyalty: Tailored offers and rewards create meaningful customer experiences. 
• Investing in modernization pays off: LevelShift’ data modernization services allow retail chains to build scalable, future-ready loyalty platforms. 

Contact us today for a free consultation and discover how our tailored solutions can drive loyalty and growth for your business.