*3 specific issues is most common. Sometimes it's 1. Other times 4 or 5. Whatever the drivers, our diagnostic tool, Improving Loyalty, is like a full-body scan for your program. After that, we repair the damage and get you back on track. And when budget cuts arise, we designed Streamlining Loyalty to address the issue.
Your program is delivering incremental sales but it’s costing you too much. Solution: Determine the cost-cutting goal, review the entire program budget, determine the changes needed to allow for profits to flow through, implement those specific changes and measure results.
Your rewards program is not engaging customers as expected. They are not providing additional visits or spending. Solution: Look at messaging, audience demographics, and partnerships. This is where you need to get creative and provide both value and engagement tactics to get your customer to notice.
The program is doing OK, but can be providing more value. The issues here usually lie within operations. Solution: Review each operational area and find gaps between the ideal state and the current state. Prioritize them based on lost value and implement changes to add significant value to the program.
This issue often stems from the launch of a program and the fear that customers will not respond. But it is difficult to pull back once a value proposition is out there. Solution: First look to see if you can adjust the earning criteria, then look at redemption rules. Don't be overly concerned with a few zealots who complain. Stick to the plan and communicate.
The best loyalty programs are founded on a high-quality customer segmentation schema. Low response and limited incremental lift is often due to incorrect segmentation. Solution: Review the segments and their demographic definitions. Test new segments with communications and offers to help lift performance.
Well-designed programs need continual monitoring to ensure incremental lift goals are being met, liability is controlled, and the program is delivering on the pro forma. Operating without these controls in place often cause programs to veer off course. Solution: Implement monitoring, analytics, and reporting to ensure the program stays on track.
If (or when!) you need to tighten your budget for loyalty marketing, don't panic. Streamlining Loyalty was designed as a structured, strategic process to meet your financial objectives with minimal impact on program performance.
Streamlining Loyalty begins with the assumptions and parameters unique to your business and situation, then moves from the general to the specific and from major to minor.
This program first considers the nature of the cost-cutting demand and how the program is currently performing. It then assesses how willing you are to make customer-facing changes to the program. Finally, it looks at your key performance indicators (KPIs) and how they match up against your forecast and past performance.
After you have a good handle on the overall landscape, the Streamlining Loyalty takes you through a diagnosis of each budget area within your program to determine the best plan of action to meet your budget and ROI requirements. While each program is different, the most common hard-cost budget areas are technology, communications, customer service, and administration.
The outcome of Streamlining Loyalty is a road map to follow for meeting your budgeting goals with the least amount of sacrifice or disruption to your program and organization.