Loyalty Examples

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Loyalty Program Transformation

Using data analytics as the Loyalty Design engine to maximize loyalty kpi's

The driver behind most loyalty program reviews is a general sense that the current loyalty benefits are not performing well. The opinion is usually formed from a patchwork of observations, for example churn is increasing, redemptions are decreasing, share of revenue is flat, or overall costs are escalating – just to name a few. This article provides an overview of the LoyaltyLevers Foundational Analysis, which provides a fact-based view of Loyalty program performance with loyalty KPI’s across the three crucial questions:
• Is the program activating engagement among the members?
• Driving profitable behavior?
• Building loyalty sentiment and an emotional connection?

The LoyaltyLevers Foundational Analysis is a key part of the Discovery process. You can find more information here on the full loyalty design process and how this critical piece fits in. 

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What are the design characteristics of an effective loyalty program?

Often, the executive order comes down to launch a loyalty program, or perhaps overhaul the current one. It is a challenging assignment, because if you ask 10 people what makes an effective loyalty program, you’ll get as many different answers. For example, the CEO might be a frequent flyer and believe that it’s all about earning miles, while the CFO may be more in favor of a recognition program that doesn’t carry points liabilities. Meanwhile executives in operations could be more interested in a program that improves the customer experience and reduces strain on front line staff. So, what’s the right answer?!

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LoyaltyLevers Balanced Scorecard:  Measuring Behavior Changes

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.

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Most loyalty programs are poised to miss this moment of opportunity

Have no doubt, this is a moment of opportunity for loyalty programs. Data privacy laws continue to tighten, which only increases the importance of first party, permission-based data. Consumers know the importance of their information, and loyalty programs can provide an important value exchange for the permission to use it. Presto -- loyalty programs are now becoming THE foundation to all data driven marketing, quite a turnaround for what brand marketers once viewed as a promotional side hustle.

Picture of Phil Hussey Phil Hussey