The successful operation of a loyalty scheme includes a systematic approach to the planning of promotions.
This is an important part of the operation of a proactive loyalty scheme, tempting the membership with cross sells, up sells and additional purchases. Planned and executed carefully, this, for many organisations, provides the bulk of the commercial justification for the operation of a scheme.
The planning of promotions involves the deployment of customer insight, taking full advantage of ever more specific multi-dimensional customer segmentations. Confusion reigns in many marketing departments where there is generally an obsession with mass market campaigns that deliver disappointing results. Intelligent use of customer data might lead to more work for the marketing department, developing and executing more campaigns and promotions to smaller audiences, but results demonstrate that this can lead to significantly improved results.
A successful loyalty scheme will target the collection of increasingly important data that improves the overall knowledge about customers, their likes/dislikes and behaviours. Promotions need to have a commercial objective but also a customer learning purpose, ensuring that the entire loyalty process targets an improved understanding of customers.