The two tensions I find on a consistent basis with brands considering a loyalty program are:
1. Profitable to the business
2. Meaningful to the member
It's an ongoing challenge to find the intersection where a program is developed that has a measurable 'Return on Loyalty" and is profitable to the business and simultaneously provides its members the 'meaning and value' that motivates the required behaviours and beliefs of members.
In 'for love or money 2017' we continued to ask the questions to find the insights that impacts on these two tensions of loyalty.
In the 2017 study, the top 3 behaviours impacting a loyalty program's success are revenue drivers for business.
Members said that they spend more, more often and purchase from a business with a program vs one without (competitor difference).
Focusing on the top 3 financial behaviours is the start to driving the 'profitable to the business' strategy.
Finding and delivering the dimensions that drive the 'meaningful to the member' strategy is not as simple as that is where a program structure has to be carefully built with the 24 SPV (Simple, Personal, Valuable) ingredients that a successful program should have. (For Love or Money 2017 ranks and rates these 24 SPV ingredients).
More detail on these and other insights on customer loyalty (what it is) and the actions to drive it as well as specifics on loyalty program success are available at The Point of Loyalty in the for love or money 2017 research study.
Have a happy loyalty day!