Over the last few years, I’ve seen client interest grow dramatically in revamping their customer loyalty program design. The focus has increased as these programs have become a central marketing strategy, and the competitive intensity is fierce. But change is never easy -- it takes a motivated executive sponsor and the right window of opportunity to get the project moving. This article lays out some catalysts to get your customer loyalty initiatives moving, and tips on how to design a customer loyalty program for maximum impact.
Category titans Sephora and Ulta both have powerful loyalty programs, in fact according to Newsweek’s “America’s Best Loyalty Programs 2021” survey they are at parity with each receiving a 7.6 rating from consumers . This article provides a thorough review of each program, digging in to how they are applying loyalty design and best practices. Both programs are strong, with Beauty Insider delivering over 80% of Sephora’s revenue and Ultamate Rewards delivering over 90% for Ulta. However, they take dramatically different approaches, and the contrast provides insight to practitioners who are considering their program design and how it plays to their brand’s strengths.
McDonald's is rolling out their Rewards program, so as part of our Loyalty Program Examples series I wanted to take a quick look at how it compares to other fast food programs, in this case Chick-Fil-A One. McDonald's is usually not the first, but rather takes the time to learn from competitors, coming in later in to outflank them with an informed strategy.
As noted in Loyalty Measurement: C-Suite Needs a Balanced Scorecard, executives need a balanced presentation of results to gauge program performance. As part of that, loyalty practitioners must measure and optimize the incremental impact of their programs. LoyaltyLevers Balanced Scorecard provides a unique solution to the challenge of causality. This article goes deeper into measuring Behavior changes and translating that into an estimate of incremental margin attributable to the program.