What is Loyalty?
9 Rules of Loyalty
In speaking engagements and initial client consultations we often address the attributes that we believe will drive the success of a loyalty initiative. Whilst these attributes will not in themselves guarantee success, they will however help to significantly improve the chances of a loyalty programme achieving desired corporate objectives:
- It is imperative that the initiative is simple to understand and relevant to the consumers targeted
- The rewards and redemptions must be relevant and achievable
- The organisation should aspire to a 70% + redemption rate
- The loyalty initiative should target a desirable, measurable and sustainable change in customer behaviour
- The loyalty initiative must capture customer data that significantly improves customer understanding
- The initiative from launch through to fulfilment must be cost justifiable
- Participation in the loyalty initiative must leave the customer feeling positive toward the scheme operator
- Customer should ideally be identified by "type" (segment), in order to plan their journey through engagement with the programme - from point collection to reward redemption
- The scheme must be designed for the long term success of the business and hence the long term improvement of customer relationships
