How often do we come across huge presentations on the strategy behind a loyalty program – and yet find ourselves completely handicapped when it comes to putting the plan into action!

"Where does one start?"  "This sounds great in theory – but how does one execute it on the ground?" Or - more simply -  "What now?!"                                                                                               

This is certainly not to take away from the importance of strategy. Every successfully run loyalty program is based on a concept and value proposition that has come out of intensive thinking, analysis and insight.

It does not end there however. What sets apart a successful loyalty program is the fact that the strategy then translated into actionable tasks that were executed with accuracy.

It is well said that the best ideas can fail because of bad execution – while a mediocre idea can thrive if executed well!

Think of the tremendous detail that needs to go into structuring a loyalty program:

1. It starts with outlining the objectives. This is where the clash of ideas typically begins! Different stakeholders have different expectations from the loyalty program. What is needed is an unbiased viewpoint that distils all these expectations into a maximum of two objectives – not more.  Don’t expect the program to achieve too many things. Set clear and reasonable expectations - and see desired results.
2. Next come the metrics and measurement methodology. How are you going to measure whether the program has achieved its objectives? Translate objectives into metrics – and outline the measurement methodology. For e.g  the program objective may be to retain and grow existing customers. The metrics would be – increase in total revenue from the customer as well as greater revenue from purchase of more profitable products. The methodology will be regular analysis of transaction data from the program membership base.
3. Then comes the detailing of over a hundred – yes A HUNDRED - decision points with respect to the loyalty program structure. To outline a few:
1. Who comprises your membership base? What criteria and threshold are you going to set for eligibility of membership?
2. How are you going to enrol them? Is it going to be auto enrolment or solicited? What medium or channel of enrolment are you going to use? What information will you collect from them at the time of enrolment? Are you going to follow-up with those who qualify for membership but have not enrolled?
3. What happens when you enrol them? Is there a membership card? What kind of card? Will you send a welcome kit? How will this be delivered to them? How is data going to be captured? In what format? At what frequency?
4. Will you have tiers in your program? If yes, what are the tier thresholds going to be? How many members will belong to each tier? And how will you differentiate between tiers?
5. What communication are you going to send your members? At what frequency? Through what channels?  At what cost?
6. What systems and infrastructure will you need? How will it integrate with the existing systems that you have?
7. What is the program going to cost? Over three years? What’s the Lift that you expect from program members over and above organic growth? What’s the forecasted ROI?
8. How are you going to launch the program? Will you have an event? What about training of internal stakeholders and frontline staff?
9. What customer touchpoints will you have? Do have manuals ready for them?

Questions, questions and …… more questions! All of which need answers. And we all thought it would be simple enough to launch a program this quarter!!
No wonder then that a Loyalty Program is a strategic decision that will have long-ranging business impact – and needs to be given the time, attention and investment it deserves.

Call Cartesian for more  on how to go about it. Through our process of Concept Development, we strive to arrive at  the most appropriate answers for each of the innumerable questions.