• Category


LOYALTY 101: IDEATION – Part 2 of a 3-Part Series

Last time we met, we talked about how to start at square one with a loyalty program. So by now, you’ve gathered your data, listened to your customers and observed best practices within your industry. You should be buzzing with ideas about how to create your loyalty program by now. Here we offer up some key elements to help guide you through this phase of the process.

How to Create a Loyalty Program

Determine Optimal Loyalty Structure – Should it be a points program? A rebate-based structure? Or something altogether different? Paint a picture of what makes the most sense based on your business objectives and market research. And always remember that not all customers are created equal, so tier your rewards and recognition accordingly.

Define Program Benefits – What matters most to your customers and are more likely to inspire the behavior you want? You’ve been listening for a while now, you should have a good understanding of what benefits will be deemed most valuable and make them feel special. Don’t simply look at what your competition may be doing. Let your program have its own value proposition and be sure to let something unique about your brand drive some of the benefits.

Create a Differentiated Value Proposition – Be sure that your value proposition is unique to your brand and offerings while still being valid in the new economy and a key differentiator from your competition. If you simply offer up a program that looks like everybody else’s, you won’t be rewarded with exceptional results.

Consider It One Piece of the Big Picture – Your program should be an extension of your brand, not something out of left field. Be sure to create a program that is seamless with your overall branding and positioning, regardless of the purchasing channel, region or communication preference.

Sallie Burnett
Follow Me