Loyalty Programmes

Done well loyalty programmes can be transformational

We like loyalty programmes. Done well they can be transformational : watch Sir Terry Leahy explain in a few words how Tesco’s Clubcard loyalty programme helped them to grow their market capitalisation to 10x that of their tow biggest competitors.

A good loyalty programme supports the overall proposition. It won’t of itself grow loyalty but it helps in other ways:

1. It enables businesses to know who their customers are – particularly important for retail businesses that don’t otherwise require customers to identify themselves when they shop.

2. Businesses can better measure customer behaviour and attitudes when they know who to ask.

3. From this, businesses can recognise their customers and adapt their proposition and communications according to what they know about the disparate requirements of their diverse customers.

Some things to consider when planning a new loyalty programme or looking to improve an existing one:

1. Does it have a clear purpose?
2. Are the goals and KPIs measurable and measured?
3. What is the customer proposition – in terms of value and usage?
4. What are the operational requirements in terms of people and technology?
5. How does it fit with the overall brand proposition?
6. What are the business benefits?

Here are some articles and resources that you might find useful
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