
In loyalty, good ideas and an experienced marketing team are no guarantee of a successful relationship strategy. R3 Marketing invites you to consider the following 7 success factors for your loyalty program.
1. Define clear objectives
Target measurable objectives based on your business model. Will you opt to increase engagement levels, retention rates, percentage of active customers, frequency of visits, transaction value or number of departments purchased? Establish a clear vision shared by the organization.
2. Involve all departments
Break down internal silos. A loyalty program is not a marketing project, but a corporate strategy. This type of strategy requires the support of senior management as well as other corporate functions.
At R3 Marketing/Adviso, program development systematically involves managers and decision-makers from all departments: marketing, finance, IT, merchandizing, operations, and so on. Find out more about our approach.
Once the loyalty program is ready to launch, remember to train all employees. Their motivation to promote and present the loyalty program correctly is a success factor not to be overlooked. The long-term success of your strategy depends on the involvement of your in-store and online teams.
3. Understand your customers
Use available data and/or research on consumers to better understand their buying behaviours and expectations. The loyalty program must first be designed according to the buying behaviours of your different customer segments in order to identify opportunities.
As Sephora’s Vice President and General Manager of Loyalty, Allegra Stanley, says: “It’s not about what their loyalty demonstrates to us, but what we can deliver to our customers that creates the most meaningful and connected experience with our brands.”1
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4. Master industry best practices
Evaluate the programs of your competitors and your industry. Also consider what’s being done elsewhere, in different industries. You’ll be able to identify trends and best practices that can be applied to your strategy and your customers.
5. Find the right technology partners
Whether you’re looking for a CRM solution or a loyalty platform, identify a partner who can help you achieve your goals. Don’t consider a solution until you’ve defined your objectives, your strategy and your program’s parameters and functionalities.
Using the right tools is one thing, but having access to solid expertise is quite another. A good technology partner will enable you not only to manage your loyalty program, but also to measure it properly.
6. Define measurement elements and KPIs
Measure your return on investment (ROI) before launching your program. After all, a loyalty program is a financial model. Its success is reflected in the numbers. Make sure you identify the right key performance indicators (KPIs) to measure, monitor, improve and demonstrate the effectiveness of your strategy.
Share strategy and KPIs with management, employees and franchisees, as appropriate.
7. Conduct a pilot or market test
To ensure the success of your loyalty program, test it before launching it on a large scale. Review key assumptions, measure and adjust parameters as necessary. Pay particular attention to operations, employee understanding and consumer feedback.
Want to learn more? Contact us for a consultation.