Strategy Formulation

“Loyalty is seen as a marketing cost, susceptible to cuts when times are hard,when in truth, successfully implemented loyalty schemes can drive growth during periods of economic decline.”

Mark Bergdahl – Director, Loyalty Consulting UK


By definition loyalty is not a short-term concept. It’s about a continuing customer relationship that can be nurtured and enhanced. It’s also about driving changes in customer behaviour that create profitable growth for your business. At LCUK we can help you assess the benefits and risks of implementing a customer loyalty programme. There are a number of successful loyalty schemes around the world: Tesco Clubcard, Lufthansa Miles & More and Intercontinental Hotels Group Rewards Club, to name just a few. However, there are also many schemes that fail to deliver any true customer loyalty, let alone added value to the customer experience. Whether you’re considering a proprietary scheme or a multi-partner coalition initiative, we can provide practical advice and valuable guidance to ensure your loyalty programme delivers results.

Our highly experienced consultants will lead your team in setting desirable and achievable objectives that are consistent with the overall direction of your business. Understanding your customers and their motivation are key to the success of any loyalty programme. We’ll look at buying behaviour patterns to ensure the programme inspires them and meets their needs.


Strategic thinking

We can help you define the short and long-term vision for your loyalty programme. Firstly, there are two important questions to answer:

Have you identified critical milestones to drive growth?

How will you measure the behavioural impact of the loyalty programme to ensure a positive impact on profitability?

We have proven experience in leading senior management teams through the process of loyalty strategy definition and formulating an operational plan to deliver against a set of agreed KPIs.


A process that’s streamlined yet thorough

We tailor our approach and methodology to suit your business and your objectives. However, most projects include the following areas of investigation:

  • High-level value proposition development
  • Business case – investment justification
  • Identification of likely implementation options

The first stage of the process is a thorough initial consultation. Thereafter, drawing on a wealth of expertise and experience, we can carry out an initial assessment very quickly – usually within weeks. We’ll help you develop robust cost-revenue and risk-benefit models to provide a comprehensive, reliable analysis of the likely effects and payback from a loyalty initiative. Our consultants will also provide leadership and guidance to your team for implementation and tactical revision of the programme strategy.

A customer relationship can span a number of years or a number of minutes depending on the nature of the business: from cradle to grave, from January to December, from student to pensioner, from acquisition to maximum fulfilment. At LCUK we help our clients to identify profitable customer journeys that define optimal engagement with an organisation. Understanding customer journeys, and there will be many, helps organisations to align their marketing strategy to deliver the greatest return on any investment.

At LCUK we help our clients to adopt a customer lens for their business, this helps to focus the organisation on positive customer outcomes that support an overall plan to defend a market, grow a customer franchise, re-organise a business for success and deliver profitable growth.

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23/05 2018
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