Few marketers realise the importance of spending time and effort in getting the DESIGN of their loyalty program right. It is not the same as briefing an agency and getting a first look at the media plan or the creative campaign. And even that takes 2-3 weeks!!

For a good (read- successful) loyalty program, the design phase is almost as long as the implementation phase and arriving at  the right construct may take as long as 6-8 weeks of intensive discovery and design. Yes, it means, that it takes that much longer to get your program off the ground and in-the-market. But a good and solid design goes a  long way in ensuring a greater chance of the program's success and long term viability.

What does it take to get the design right?

1. Spend time understanding the business priorities, opportunities and challenges -  a loyalty program cannot function in isolation of the overall business objectives. Get an idea of expectations of program deliverables from all stakeholders.
2.  Get your hand around the data. Deep-dive into analysis of transaction data over the past 12-24 months and understand customer transaction behaviour in greater detail.
3. Understand the customer expectations and desires - go back to whom the program is intended for. Ask them what they expect from a program and what are their current satisfaction and pain point areas. You will be surprised at how vocal your customer can be when asked for an opinion!

From the New York Times.... 

http://www.nytimes.com/2012/02/19/magazine/shopping-habits.html?_r=2&src=me&ref=general

The Power of Word of Mouth

How many times have we thought of consulting someone when making an 'involved' purchase? "Involved" does not necessarily mean expensive; "Involved" is where the customer is taking an active, conscious and deliberately thought-out decision when making a purchase; Certainly, most often when the item in question is expensive - but also, equally, when the item is of great interest and criticality to him/her.

From computers and hi-tech equipment to the latest restaurant in town to a new branded food item or skin cosmetic that has come into the market to a decision on a financial investment instrument or the service at the salon round the corner - yes, word-of-mouth plays a crucial role.

There is a vast difference in credibility between a brand claiming something in its advertisements versus its customers spontaneously endorsing the same benefits.

How many marketers allocate a share of their marketing budgets to 'word-of-mouth' development? Worth thinking about. Its one thing to satisfy your customers - its another to get them to actually voice their satisfaction to others! Social Media Marketing, here we come.....

The Power of Service

Today's marketing is not just about the product - but about the service offering you build around it.  And this goes not just for physical 'products' but even for services that are being marketed. What is the coating you can build around the core product or service offering?

A bank sells a Used Car Loan - can they also pack in the transfer of ownership paperwork and formalities at the RTO? So the customer walks in for a loan - and walks out with his car, all paperwork done, without having to move a finger. Except for the signatures that is!

An airline gets a booking for a senior citizen travelling long haul. Can they proactively offer wheelchair service at transit and allot a seat with more leg room?

A food products manufacturer offers a range of mouth-watering  recipes where their ingredients can be used. Two birds with one stone!

Who is willing to travel the extra mile to elicit the customer 'Wow"? No prizes for guessing where customer loyalty will lie.