As I continue to observe programs across multiple sectors, time and again I see failures that can readily be solved. While managing global programs on both consulting and client sides, I notice these sins committed on a daily basis. There is no excuse for their existence, but they are apparent to the trained eye of an expert practitioner. Likewise, the program member is frustrated by the inability of either the strategy consulting firm managing the program or technology platform provider to improve on user experience. So, it’s time to reveal those sins to the light of day!
Out of Control Deal Loyalty: Discounting too often over the same timeframe that points or program currency is offered. Use your value proposition wisely. Don’t chase sales by driving down your margin on goods sold while at the same time escalating your liability. Work ahead and communicate through progressive planning process/methods by effectively teaming with your merchant planning and analysis team for well-coordinated promotional planning.
Can’t Find the Program: Where is it? In the footer of your website. Seriously? You’ve got a financial model that projects incremental lift from your best customers, the 20% of customers that per The Pareto Principle are delivering 80% of your sales and the program isn’t worthy of a prominent position on your main landing page? What gives? Fight back with the e-commerce team and get your program some real estate.
Advertise it, But Forgot to Support it: This is even worse, where the loyalty agency builds a program, informs and integrates at the store level and yet the website team is clueless. I love how program leadership has achieved prominence with the Chief Marketing Officer such that they support having a rewards or recognition or loyalty program featured in a broadcast spot. In my past, it wasn’t until the program met an arbitrary threshold before I could get that kind of support. So what gives that a program can be one of the key features in a campaign and clearly something that will be core to the brand’s identity and yet nothing is found on the brand website or the mobile app?
Stop Harassing Me: Before launching a program a “must do” planning process is to figure out the sequencing of email communications – member vs. non-member, transactional thank you’s, welcome messages, promotional and partner. For brands that have multiple entities and/or share an opted in email across the enterprise, a member might receive 10 or more emails in a given week. Plan ahead, gain alignment, share plans, and gain understanding on priorities across the corporate enterprise. Most importantly, your email service provider (ESP) should step in and act as “traffic cop” so that the ecommerce business doesn’t double up on what store marketing seeks to accomplish in any given week.
Where is the Insight?: The #1 complaint from members? You know me and you aren’t showing me that you know me. The failure of programs to not support in-depth analytics coupled with strategic insight to then inform true personalization is shocking. Why do programs go dark insofar as member inactivity? Why are your open rates crashing? Start from square one and dig into the data, reconfigure your creative and begin to effectively leverage creative assets, create new messaging, refresh the look and feel of your creative to match what you know or believe you know about your program members.
Innovation…What is that?: For a program – yes, even a brand – to survive in tough competitive categories, it is essential to innovate. Try new and different strategies and tactics. Explore new partnerships that keep the program offering fresh and different. Test and Learn is essential to inform and refine. If you say you don’t have the bandwidth to implement, pull back on something less valuable that you are implementing today and shift resources. This is way too important to not commit your team and support partners to plan for and measure every business day. Do you have champion/challenger in place? If not, why not?
Financial Modeling: Well, I left the best for last! Don’t tell me you forgot all about that tricky model we built to justify the program business case. Really? Haven’t looked at it in months? Nice. Things must be perfect and you are hitting all your lift parameters. Enrollments – check. Liability – check. Redemption Rate on Rewards – check. Average Order Value – check. Renewals on a Paid Model – check. Margin on Goods Sold – check. Lift on a Redemption Event – check. Frequency of Visit – check. Lift to Online Conversion – check. That is a lot of checks, right? If there is one sin to avoid, this is it. It all starts with accountability.
Posted by David Slavick, Co-founder & Partner at Ascendant Loyalty Marketing. For assistance in avoiding or rectifying any of these 7 deadly sins, please contact us at Ascendant Loyalty.