“Everyone has a plan until they get punched in the mouth” thank you Mike Tyson
While not as extreme as that, even when you expect the unexpected, you still get taken by surprise!
On the release of 11th edition For Love or MoneyTM 2023 I did not know what to expect from the new Loyalty Program Experience Index SPVX - a rating of a loyalty program by its members based on their experience with the program weighted against three key variables of how Simple (S), Personal (P) and Valuable (V) the program is to them.
The reaction has slightly overwhelmed me (in a positive way) and this has confirmed my intention to continue with the Loyalty Program Experience Index SPVX in future editions of For Love or MoneyTM
However not everything is bright and dandy and there have been a few robust conversations since the release … keeping me on my toes.
I did receive some private commentary on why some of the programs did not rank higher… with feedback … “I love this program, why did it score so low?”.
My answer with absolute respect to all loyalty programs scored, is that this index is not based on “love”!
Instead, it is an index that has been carefully curated and tested based on three key variables of a member’s experience with a loyalty program - how simple, personal and valuable the program is to them.
Here is more detail.
Introducing The Loyalty Program Experience Index SPVx
For the first time in the ongoing For Love or MoneyTM customer loyalty and loyalty program research, a new metric to understand the members’ point of view on their experience with a loyalty program, has been formulated.
The Loyalty Program Experience Index SPVx is a rating of a loyalty program by its members based on their experience with the program weighted against three key variables of how Simple (S), Personal (P) and Valuable (V) the program is to them.
How Simple a program is to interact with - Simple to understand, easy to join; easy to identify as a member; easy to earn and redeem rewards.
How Personal the program is to members - The communications are personalised, the rewards are relevant and members feel special.
How Valuable a program is to members - The rewards are meaningful, desirable and valuable to members.
How were the definitions of Simple, Personal and Valuable formed?
Since 2013, the For Love or MoneyTM research has been studying loyalty programs from the members’ point of view.
In those research studies we identified multiple dimensions of how members engage with programs and what’s important to them.
How simple a program is, how personal it is and how valuable it is to members are three key variables we have identified to optimise the loyalty program experience.
Based on these learnings, we created a standard and simple definition of each of the three variables for members of loyalty programs to assess their memberships on these variables.
Why are the three variables of Simple, Personal and Valuable selected as the basis of the Loyalty Program Experience Index SPVx ?
Based on our 16 years of experience with designing and deploying loyalty programs of all types and structures, we identified the overall program experience was optimised by three key variables - how simple, personal and valuable programs are to members.
These three variables are key to loyalty program engagement and success.
NOTE: While there are deeper layers behind each of these, we have been researching these three variables in the For Love or MoneyTM research studies and have now integrated these into a loyalty program Experience Index SPVx, based on the members’ point of view.
68 Australian loyalty programs were scored with a Loyalty Program Experience Index SPVx
In For Love or MoneyTM 2023, 68 Australian loyalty programs were scored by members based on the three key variables for optimising the loyalty program experience to calculate the Loyalty Program Experience Index SPVX.
The report provides more details on the four steps to calculating the Loyalty Program Experience Index SPVX.
If your loyalty program is one of the 68 with a Loyalty Program Experience Index and you would like to have a confidential chat about the results, please let me know (firstname.lastname@example.org) and we can discuss this further.
Have a happy loyalty day!