Does your loyalty program build loyalty or encourage discount-only shopping?
Getting a loyalty programme to work is not magic — but it does take a certain amount of art. The key is to get right the alignment among programme objectives, design and its actual implementation. Global Frontier Partners has developed a 10-point framework that helps structure and evaluate a loyalty programme. This is illustrated below: on each of the design parameters, there are best (and worst!) practices that can be seen in the marketplace. GFP’s research of 50 such programmes has helped identify more than 40 best practices in the area. For successful programmes, the starting point is a clear definition of the objective(s) of the initiative and then using that as the criteria for the rest of the design process. We list below three examples of such programmes — where the intent is firmly driven through the design and implementation.