7 points to ponder about Retail Loyalty

Retail Loyalty Programs: seven points to ponderDirect Marketing News

1. The shape shifter :

Lawrence of Arabia didn't always ride a camel!

Customer knowledge is the single most powerful pay-off of a Loyalty
program. There's a load of analytical approaches beyond RFM for
retailers wishing to leverage customer knowledge. Not all of these
appear to be easy to adopt and marketers shun analytics more out of a
lack of understanding of what it can do for them. Get the experts in,
listen to them – you'll find that there's ROI in it for you.

2. The Painter

To paint yourself into the Customer's picture, you need a strong concept

Building a loyalty program concept requires not just sound strategic
thinking, but loads of rigor. The success lies in being able to detail
out solutions to over 100 decision points that a loyalty program
concept needs to cover. You cannot be reacting to situations as they
happen!

3. The Magician :

Loyalty programs are more than a Card trick!

The loyalty card is the most familiar face of a loyalty program.
There are many options here from Mag Stripe to RFID, stand alone to
coalition, but the key point is that launching a card does not a
loyalty program make. This space is littered with failed programs that
were launched as a card and little else.

4. The Neuromancer :

Technology and marketing need to work together for success

The software on which your program depends needs to be designed
carefully, and should handle all aspects of your program. Retail POS
solutions often offer a basic loyalty module – these are usually
inadequate! The point: Don't design your program to fit the software.

5. The Band :

The Band needs to work together, and needs superhuman skills

The team that drives the program internally needs to be composed of
skills that are difficult to find in any market. Direct marketing, CRM
and Loyalty skills need to be nurtured and the team needs top
management support. Importantly, you will need to rely on the right
partners to come in with specific skills.

6. The Campaigner :

Good campaign management yields results

Campaign management practices are better established amongst the
banks than retailers, but here is where the real pay-off is. Leverage
campaign management tools as they will allow you to run hundreds of
targeted campaigns which really do pay off, as compared to a few
festival offers and generic promotions.

7. The Timekeeper :

The payoff comes with patience

Set expectations right. To launch a program AND expect a jump in
sales within 6 months is pushing it. Building up a quality member base
(no mass enrolments), setting up the back end, campaign management
– these all take time and effort, and the metrics to measure
success take time to show the returns.

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