Precision Marketing Solutions >> Program Concept Development

Cartesian’s all encompassing, one-stop offering for those organisations planning to launch loyalty programs. Cartesian’s Program Concept Development product will create, position and structure your loyalty program down to the last detail.
An in-depth, intense exercise that takes 6-8 weeks, it starts from an overview of the category and business strengthened by an understanding of customer motivations and behaviour through research and data analysis. This assessment, audit and analysis leads to the development of a robust program construct with a strong and differentiated value proposition for the target segment. A unique aspect of our offering is that we consciously go beyond strategic decisions to include implementation guidelines as well.
The Program Concept Development module has key deliverables in the form of a program rule book and a detailed concept document that will answer all questions and complex decision points with respect to a loyalty program for your organisation such as:

• What are the objectives of the program?
• What are the measurement metrics for evaluating success?
• What are the rules relating to membership - qualification criteria, enrolment criteria, enrolment procedure, duration of membership.
• What is the tier strategy? Number of tiers, thresholds, upgrades, downgrades.
• What is the currency strategy? Are there points? What is the earn-burn ratio?
• What is the reward and benefit strategy?
• What is the communication strategy, elements, channels and calendar?
• What is the process for renewal, redemption, disqualification?
• What is the partnership strategy?
• What is the exit strategy?
• What member services are required in terms of member helpdesks etc?
• What is the financial model for the program? Three year sizing and forecasted ROI, program liability year-on-year, forecasted member base y-o-y
• What are the program terms and conditions?
• What is the launch plan?
• What internal orientation and training is required?
• What should be the team structure to manage and run the program on an ongoing basis?
• What are the implementation guidelines?

Areas for Program Concept Development include:

Area	Process	Format/Tool
Business Analysis	Stakeholder interviews, environment study, competitive scan	Organisation SWOT chart
Expectation Setting	Stakeholder Interviews	Objective Prioritisation Chart
Data Analysis	Analysis of transaction, sales data available over a 6 month to 1 year period	Ticket size and contribution chart Day, week, month trend charts Customer value table – mean, median, mode, min-max Customer decile and percentile table Membership Threshold Option chart Tier distribution chart
Customer Understanding	Existing customer research, additional dipstick	Customer profile description Insight and implication table
Program Objectives	Prioritising program objectives in line with overall business objectives	Primary and secondary objective classification
Program Metrics	Expected outcomes from program	Success Metric table
Program Phases	Phasing out program tasks	Phase chart – Pre-program, base program, Program Horizon 2 and Program Horizon 3
Program Value Proposition	Outlining key program offering to member base	Program Proposition Elements Chart
Program Construct and Rules	Program rules and decisions on : audience, threshold, membership, identification, tenure, program cycle, enrolment, renewal, tiers	Option, recommendation, rationale table Summary of decisions  table
Program Model	Iterative worksheet on member base sizing, earns and liability	Program Model worksheet
Program Currency Strategy	Currency earn-burn ratios, validity and expiry, incentive/ target/ bonus strategy, accelerated earnings, householding, retrocredit/debit, breakage,  y-o-y liability	Program Earn Rate table Target setting table Liability Projection chart Breakage Estimation
Program Reward and Redemption Strategy	Rewards strategy, redemption process and thresholds	Redemption Milestone Chart
Program Communication Strategy	Communication plan and calendar	Program Communication Calendar
Program Systems	System Requirements
Program Financials	Program ROI estimation	Program Budget Sheet Program Lift Estimation
Program Implementation Guidelines	Guidelines for program implementation and launch	Program Launch Plan Year 1 task chart First 3 month detailed calendar of activity

Deliverables
Program Concept Document
Program Rule Book

Modules also offered independently:-

• Cartesian Campaign Calendar
• Cartesian Program Model
• Cartesian Program Launch