Customer loyalty towards a brand is to a great extent defined based on how do your customers perceive loyalty programs. Therefore it is important to see loyalty from the mind of the customers instead of building a program which we feel feel works for our organization/brand.
Only a structured approach without missing any of the steps will only lead to a loyalty program which will be valued by your customers and fits well with your brand.
Building blocks of a loyalty program
When you think of building a loyalty program. Keep in mind the actual construct of a loyalty program would germinate from the building blocks that are laid as foundation. Without a proper foundation the loyalty program would remain a very weak proposition and would not administer in the mind of customers and not excite them either.
Know your customers: This could be done as a two pronged approach. First your internal data should broadly speak of who your customers are. Followed with it a customer research in this direction can add a good perspective in understanding your customers.
Types of Loyalty Programs: There are a wide variety of loyalty programs that are out there. Important to research and understand different types of loyalty programs. From points based to cashback driven, external gratification to rewards catalogue or coalition based. Important to identify what will excite your customers
Objective Setting: What is the program supposed to deliver for you. Loyal customers yes. But that is not really your core objective. Is it supposed to drive more referrals, stickiness, reduce churn, increase in wallet share, more visits. Always set out the objective clearly right at the start.
Right Rewards: Most of the loyalty programs lose their relevance when the rewards are not exciting or relevant for the customers. Therefore it is important to have the right set of rewards and also a good mix to ensure maximum coverage.
Co-creating with customers: Once you have narrowed down on the program that you want to build. Keep going back to customers to do dipstick tests with them to identify if these programs are connecting well with them. They will help you co-create your program.
If you are deliberating on setting up a loyalty program but not sure if you are moving in the right direction. Let us connect.
What can Advisai Consulting help you with:
– Benchmarking against industry standards with deep understanding of the loyalty industry overview
– Help you create a strong base to move in the loyalty journey
– Work with your teams to create the building blocks of loyalty
– Create the loyalty construct
– Getting the execution & launch of the program right